CDP Royalty Rights - Montney Shale I was looking at a couple of Montney Shale plays today, because of this SA Article:
https://seekingalpha.com/article/2508465-canadas-shale-boom-more-to-come-in-montney?ifp=0
Seems its just the beginning and companies like Encana or Nuvista have drilled impressive wells lately. e.g. initial 2000Bopd
Then i suddenly realized something NO analyst and not even ALS have talked about:
CDP also contains O&G Royalty rights, because those are, as the company states:
"
THEY ARE EFFECTIVELY OLD FEE SIMPLE GRANTS CREATING DURING THE BUILDING OF THE RAILROAD, THESE LEGACY LANDS ARE ACTUALLY A UNIQUE PART OF OUR CANADIAN HERITAGE." --> so now go check the area of CDP interest vs. Montney shale extension + current drill activity.
As per lastst Q report the OIL&GAS Royaties already were 0,3 million:
"CDP revenue consisted of potash royalties of $191,000 and petroleum and natural gas (“PNG”) royalties of $309,000 and annual rentals of $4,000, for a total of $504,000 for the quarter."
So this could be a VERY! valuable asset longer term, especially given premiums to PSK.TO and FRU.TO
Bottom Line:
Altough VB seems to be a disspointment and PRML royalties are lower than i estimated: Those O&G Royalties could be huge and i think that noone had that on the radar yet = i am happy i bought back!
....
chrs
Teatime