Source Rock Royalties – New Acquisition Of 5 Percent Gross Overriding Royalty On 3 Light Oil Properties In Central Alberta
Brad Dochery, Founder, President and CEO of Source Rock Royalties (TSX.V:SRR) joins us to discuss a new acquisition, that was announced March 27th, where it will have a 5% gross overriding royalty (GORR) on three light oil properties in Central Alberta, operated by a private Calgary-based oil and gas company.
We started off contrasting this new royalty acquisition in Alberta, where the royalties are on more established oil wells and on maintaining solid operations with a water flood process, with the prior royalty acquisition announced November 28th of 2022 of a different royalty agreement in Saskatchewan that is more about drilling new wells to grow production. In the prior acquisition of a 2% GORR in S.E. Saskatchewan operated by Anova Resources Inc., and Elevation Oil & Gas Limited, Source Rock has received a drill commitment for 15 additional net horizontal wells to be drilled on Source Rock’s royalty lands prior to December 31, 2024.
This brings up a larger discussion with Brad, of how Source Rock Royalties structures it’s partner royalty deals, and how they are positioned in the overall energy royalties space in Canada, compared to their 3 larger cap peers. Brad outlines that company is still quite interested in making more royalty acquisitions in 2023 that will be longer-term accretive. The Company announced March 15th that is continues to pay a quarterly dividend, and is set to release it’s Q4 and full year 2022 financial results in mid-April.
If you have any further questions regarding Source Rock Royalties, or want more information on any aspect of the Company, then please email us at Fleck@kereport.com and Shad@kereport.com.