Maple Leaf Royalties Corp. (TSXV: MPL.V) entered into a definitive purchase agreement with Maple Leaf 2012-II Energy Income LP, agreeing to acquire various royalty interests and nonoperated working interests in Alberta and Saskatchewan wells, the company said March 24.
There are 17 oil and natural gas wells, five of which are royalty interest wells and 12 of which are nonoperated working interest wells. The five royalty wells are in greater Alberta’s Bigstone area in the Montney Formation. Four nonoperated wells are in Alberta’s Kakwa area, two are in Sylvan Lake, three are in Rimbey and one is in Oldman. Two are in Saskatchewan's Java area, the company said.
Pro forma production is estimated to be about 750 barrels of oil equivalent per day (boe/d), about 70% natural gas and 30% oil and NGL. March production was estimated at 510 boe/d, 74% natural gas and 26% oil and NGL. The royalty wells are producing about 29%, while the others are producing the remaining 71%, the company said.
Maple Leaf Royalties will issue 23.5 million of its common shares to Maple Leaf 2012-II. The shares are priced at 45 cents each, for about CA$10.5 million in total consideration.
The transaction is scheduled to close on April 1. It is subject to TSX Venture Exchange approval and other regulatory approvals.
At closing, Maple Leaf Royalties will have about 75.4 million outstanding shares, about 9.9 million share purchase warrants and 73,334 stock options to purchase shares.
The Calgary, Alberta-based company has about CA$2.7 million in working capital and no debt.
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