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HIGH PEAK ROYALTIES LIMITED — Capital/Financing Update 2016
Nov 17, 2016
65070_rns_2016-11-17_63142ade-420f-407d-97fd-82def7cf87f4.pdf
Capital/Financing Update
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18 November 2016
Australian Securities Exchange Companies Announcements Office
HPR ACQUIRES MORE USA CASH FLOW ROYALTIES
HPR continues to identify opportunities and acquire oil royalties.
Through wholly owned HPR USA Inc. the Company has acquired royalties on seven producing wells and the right of first refusal for 30 months on a similar royalty any additional wells drilled in the same area, for a total cost of USD 230,000.
The acquisition builds on the existing USA "Dillon" portfolio that has provided steady cash flow since acquisition in December 2014.
The seven producing wells are long reach horizontal well bores in Lee and Burleson County Texas.
Five of these well bores are in the prolific Eagleford Formation and the other two wells are producing from the Austin Chalk and Buda formations. All of these wells have additional behind pipe potential for future production.
The area has over 10,000 acres completely covered with modern 3-D seismic that has the potential for hundreds of additional wells and royalty opportunities.
The cumulative revenue from these 1% ORRI royalties has averaged more than AUD 6,400 per month for the past six months. The effective date of acquisition is 1 October 2016.
Anthony Wooles, the Chairman of HPR, said "I am pleased that we continue to show progress in identifying good opportunities and closing deals to take advantage of lower prices in this low oil price environment. This acquisition builds on efficiencies in extending our US portfolio and adds to cash flow and importantly has significant future potential."
For further information please contact:
Jarrod White Chief Financial Officer | Company Secretary Ph: +61 2 8296 0011 Email: [email protected]
High Peak Royalties Limited (ASX:HPR) – ABN 79 118 065 704 Suite 305 Level 3, 35 Lime Street, Sydney NSW 2000 +61 (0)2 8296 0000 | www.highpeak.com.au
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About High Peak Royalties:
High Peak Royalties is Australia's leading oil and gas royalties company, with exposure to 24 royalties in Australia, and the United States. High Peak Royalties’ portfolio covers production, development and exploration projects and features high quality project operators, including some of the world’s leading oil and gas companies.
The company’s portfolio includes:
| Permit / Location | Royalty Interest (%) |
Operated By |
|---|---|---|
| PL 171 and ATP 574P | 2.50 | Queensland Gas / BG Group |
| ATP 299P Petroleum Leases: PL29, PL38, PL39, PL52, PL57, PL95, PL169, PL170, PL293, PL294, PL295 and PL298 |
3.6/4.0 | Santos |
| Peat Gas Field(PL101) | 2.13 | Origin Energy |
| Surprise Oil Field(PL6) | 1.00 | Central Petroleum |
| Longtom Gas Field(VIC/L29 and VIC/P54) | 0.30 | Seven GroupHoldings |
| WA-314-P | 0.10 | Karoon Gas |
| WA-315-P | 0.10 | ConocoPhillips |
| EP(A)111,EP115,EP(A)120 and EP(A)124 | 1.00 | Central Petroleum |
| EP112,EP115NM and EP125 | 1.00 | Santos |
| PEL512 | 1.30 | DiscoveryEnergy |
| WA-482-P | 0.20 | Apache Corporation |
| WA-EP468 | 2.00 | Paltar Petroleum |
| EP156 and EP(A)155 | 2.00 | Mosman Oil and Gas |
| United States (East Texas, Permian and Texas Gulf Coast Basins) |
0.20 to 0.40 | Sabine Oil and Gas, Pioneer Natural Resources and Wagner Oil Company |
| United States (East Texas) | 1.00 | Silver Tusk and New Century Operating |
| Weeks Petroleum Royalty (Gippsland Basin) indirect interest via 19.99% shareholding in Royalco Resources(ASX: RCO) |
0.005 | ExxonMobil |
High Peak Royalties Limited (ASX:HPR) – ABN 79 118 065 704 Suite 305 Level 3, 35 Lime Street, Sydney NSW 2000 +61 (0)2 8296 0000 | www.highpeak.com.au