Canada : Acquisition Announcement of Gross Overriding Royalties for $7 Million - Maple Leaf 2013 Oil & Gas Income LP.
Maple Leaf will provide a cash payment of $7 million to Waldron at closing;
Waldron will reserve a 3% gross overridding royalty ( GORR ) in favour of Maple Leaf on all producing and nonproducing lands owned by the company;
Waldron will commit to drill two Ferrybank Falher wells within seven months, and will reserve an additional 7% GORR payable to Maple Leaf on these two wells;
If Waldron fails to drill either of the two Ferrybank Falher horizontal wells, or a mutually agreed upon substitute, Waldron will refund $750,000 per well to Maple Leaf; and
Maple Leaf granted Waldron a 15 month option to repurchase all gross overriding royalties associated with the Agreement at a price of $9.1 million less royalties paid under the Agreement and less two thirds of any amounts refunded, if any, as a result of any failure to drill the Ferrybank wells.
The Waldron Transaction provides our unitholders with immediate cash flow from a well-diversified existing production base as well as exposure to future activities on approximately 100,000 net acres of land in Alberta, commented Maple Leaf President Adam Thomas. We see significant value and development upside in the assets.
The Partnership is also pleased to announce that it closed an unrelated royalty acquisition in the Ferrier area of Alberta on May 29, 2014 for total consideration of $380,000. Approximately $4.4 million remains uncommitted within the Partnership.
2014 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).
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|Date:||Jun 13, 2014|
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