RE:Looks like sask land acquisition So they get a 2% Royalty + about 9 million, and then they are planning on selling the rest of that company meaning the royalty likely to a Freehold, Prarie Sky, Topaz, Source Rock or someone similar?
We get: land currently approved for 16,000 barrels per day but yet to be developed + a project that's in resource estimation stage with good outlook, with 15-20 year estimated lifespans.
It's doesn't seem like it's gonna help us now, but for 9 million that seems like a steal... Quick maths say 16,000 x $30 netback (which is about current oil conditions) = $480,000 per day or $14.4 million per month (30 days)... Of course we have to spend a bunch in Capex to get those projects into production + likely infrastructure... but that seems like a huge possible return rate whenever we get to it!