Maple Leaf Royalties Corp. V.MPL.P

Royalty Acquisition and Approval of Dividend Policy

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Maple Leaf Royalties Corp. Announces Royalty Acquisition and Approval of Dividend Policy V.MPL | April 14, 2015 CALGARY, ALBERTA--(Marketwired - April 14, 2015) - Maple Leaf Royalties Corp. (TSX VENTURE:MPL) ("Maple Leaf") is pleased to announce that it has entered into an agreement to acquire existing gross overriding royalty interests in southern Alberta, and that its board of directors has approved a dividend policy. Asset Acquisition Maple Leaf has executed purchase and sale agreements with two private oil and gas companies whereby Maple Leaf will acquire a 5-15% sliding scale gross overriding royalty on oil and a 15% gross overriding royalty on natural gas and natural gas liquids on 1,000 contiguous acres in southern Alberta. The royalty land includes the majority of a significant oil pool that has produced over 6 million barrels of medium gravity oil to date and continues to produce with a relatively shallow decline rate. Recent net royalty production from the assets to be acquired is estimated to be 28 barrels of oil per day plus minor solution gas and natural gas liquids. Despite low realized oil prices, cash flow from the royalty interests exceeded $30,000 in each of January and February 2015. The total purchase price for both of the acquisitions is $3.75 million, which will be funded through a combination of the $3 million cash that the company has on hand and bank debt. The transaction has an effective date of April 1, 2015, and closing is expected to occur on or around May 1, 2015. Dividend Policy With the recent completion of the company's third significant acquisition of royalty interests as announced April 1, 2015, Maple Leaf's board of directors has approved the commencement of the payment of dividends through a dividend policy whereby an initial cash dividend will be paid in July 2015. Given recent market volatility, the precise timing and amount of the dividend will be announced at a later date. The dividend policy includes a relatively conservative payout ratio, with the intent of retaining a portion of cash flow within the company in order to help fund its growth by acquisition strategy. "This latest acquisition is a top-tier royalty interest on a sizeable oil pool with a sub-10% annual decline rate and the potential for further future development," commented Maple Leaf CEO Dan Gundersen. "We view the current market environment as very positive for further accretive acquisitions, and look forward to fully implementing a dividend in early summer." Read more at https://www.stockhouse.com/news/press-releases/2015/04/14/maple-leaf-royalties-corp-announces-royalty-acquisition-and-approval-of#4G2sc18vKOlsktO1.99