Maple Leaf Royalties Corp. V.MPL.P

RE:RE:RE:RE:RE:Canadians and now even Americans love the divvy!!!

[freedom-1970]

 

Royalty Arrangement

As part of Canamax’s objective to conserve capital while maintaining its production base, the Company
has recently entered into a Royalty Arrangement with Maple Leaf 2013 Oil & Gas Income Limited
Partnership (“Maple Leaf”). Under terms of the Royalty Arrangement, Maple Leaf will fund $2.55
million of the capital cost to drill, complete and tie-in six vertical wells (the “Royalty Wells”) at the
Company’s Flood property in exchange for a gross overriding royalty (“GORR”). This allows the
Company to reduce its capital expenditures for the Royalty Wells and improve its rate of return on these
wells

Canamax is required to drill the Royalty Wells prior to September 30, 2015. Maple Leaf will initially
receive a 20% GORR on production from the legal subdivision on which each Royalty Well is located,
reducing to 10% once payout is achieved on Maple Leaf’s investment. The GORR does not attach to any
other production from the Company’s Flood property.