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Under Review / Dominion Royalty Partners, ULC
Dominion Royalty Partners, ULC
Royalty DivestitureBid Deadline: October 17, 2024
12:00 PM
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OVERVIEW
Dominion Royalty Partners, ULC (“Dominion” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its royalty interests, consisting of gross overriding royalty (“GORR”), Lessor Royalty (“LORR”) and Gross Royalty Trust (“GRT”) interests, located in the Clive and Holden areas of Alberta and the Benson, East Carnduff, Hazlet, Premier North, Queensdale, Success and Weyburn areas of Saskatchewan (the “Properties”).
The Properties consist of royalty interests primarily on several units with long-life, low-decline production. Several of the units are under secondary recovery.
Royalty income net to Dominion from the Properties for the quarter ended March 31, 2024 was approximately $39,000, or $156,000 on an annualized basis.
Daily production net to Dominion from the Properties for the quarter ended March 31, 2024 averaged approximately seven boe/d, consisting of seven bbl/d of oil and two Mcf/d of natural gas.
Royalty payors include Computershare Trust Company of Canada, Ember Resources Inc., Enhance Energy Inc., Freehold Royalties Ltd., Jarrod Oils Ltd., Pine Cliff Energy Ltd., ROK Resources Inc., Saturn Oil & Gas, Inc., Veren Inc. and Woodland Development Corp.
The Properties consist of royalty interests primarily on several units with long-life, low-decline production. Several of the units are under secondary recovery.
Royalty income net to Dominion from the Properties for the quarter ended March 31, 2024 was approximately $39,000, or $156,000 on an annualized basis.
Daily production net to Dominion from the Properties for the quarter ended March 31, 2024 averaged approximately seven boe/d, consisting of seven bbl/d of oil and two Mcf/d of natural gas.
Royalty payors include Computershare Trust Company of Canada, Ember Resources Inc., Enhance Energy Inc., Freehold Royalties Ltd., Jarrod Oils Ltd., Pine Cliff Energy Ltd., ROK Resources Inc., Saturn Oil & Gas, Inc., Veren Inc. and Woodland Development Corp.
Overview Map Showing the Location of the Divestiture Properties
Production & Royalty Income Overview
The following table outlines Dominion’s 2024 royalty revenue for the first quarter of 2024.
The following table outlines Dominion’s 2024 royalty revenue for the first quarter of 2024.
Daily production net to Dominion from the Properties for the quarter ended March 31, 2024 averaged approximately seven boe/d, consisting of seven bbl/d of oil and two Mcf/d of natural gas.
Gross Production Group Plot of the Properties
LMR Overview
The Company does not operate any wells or facilities related to the Properties.
Reserves Overview
The Company does not have a reserve evaluation related to the Properties.
Facilities Overview
The Company does not have an interest in any facilities related to the Properties.
Well List
Click here to download the complete well list in Excel.
The Company does not operate any wells or facilities related to the Properties.
Reserves Overview
The Company does not have a reserve evaluation related to the Properties.
Facilities Overview
The Company does not have an interest in any facilities related to the Properties.
Well List
Click here to download the complete well list in Excel.
SOUTHWEST SASKATCHEWAN PROPERTIES
Township 15-17, Range 16-19 W3
In Southwest Saskatchewan, Dominion holds royalty interests in the Hazlet Unit and Southwest Success Voluntary Unit, both operated by Veren Inc., as well as certain non-unit wells operated by Jarrod Oils Ltd.
In Southwest Saskatchewan, Dominion holds royalty interests in the Hazlet Unit and Southwest Success Voluntary Unit, both operated by Veren Inc., as well as certain non-unit wells operated by Jarrod Oils Ltd.
HAZLET
Township 17, Range 19 W3
At Hazlet, the Company holds royalty interests in the Hazlet Unit - Oil operated by Veren Inc. as well as certain non-unit wells. Production from the Hazlet Unit is from the Roseray Formation. The royalty payors for Hazlet are Veren and ROK Resources Inc.
The royalty agreements with Veren consists of a 2.5% GORR on 100% of production on 75% working interest and a 2.0% GORR on 50% of production on 50% working interest. The royalty agreements with ROK consist of a 2.5% GORR on 100% of production on 25% working interest and a 2.0% GORR on 50% of production on 50% working interest.
Daily production net to Dominion from Hazlet has recently averaged approximately three boe/d, consisting of three barrels of oil and natural gas liquids.
Royalty income net to Dominion from Hazlet for the quarter ended March 31, 2024 was approximately $16,500 or $66,000 on an annualized basis.
At Hazlet, the Company holds royalty interests in the Hazlet Unit - Oil operated by Veren Inc. as well as certain non-unit wells. Production from the Hazlet Unit is from the Roseray Formation. The royalty payors for Hazlet are Veren and ROK Resources Inc.
The royalty agreements with Veren consists of a 2.5% GORR on 100% of production on 75% working interest and a 2.0% GORR on 50% of production on 50% working interest. The royalty agreements with ROK consist of a 2.5% GORR on 100% of production on 25% working interest and a 2.0% GORR on 50% of production on 50% working interest.
Daily production net to Dominion from Hazlet has recently averaged approximately three boe/d, consisting of three barrels of oil and natural gas liquids.
Royalty income net to Dominion from Hazlet for the quarter ended March 31, 2024 was approximately $16,500 or $66,000 on an annualized basis.
Hazlet Unit - Oil
Gross Production Group Plot
PREMIER NORTH
Township 15, Range 19 W3
At Premier North, the Company holds royalty interests in certain non-unit wells operated by Jarrod Oils Ltd. Production at Premier North is from the Roseray Formation.
The royalty agreement with Jarrod consists of a 2.0% GORR on 100% of production on 100% working interest.
Daily production net to Dominion from Premier North has recently averaged approximately 0.3 boe/d, consisting of 0.3 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Premier North for the quarter ended March 31, 2024 was approximately $1,900 or $7,600 on an annualized basis.
At Premier North, the Company holds royalty interests in certain non-unit wells operated by Jarrod Oils Ltd. Production at Premier North is from the Roseray Formation.
The royalty agreement with Jarrod consists of a 2.0% GORR on 100% of production on 100% working interest.
Daily production net to Dominion from Premier North has recently averaged approximately 0.3 boe/d, consisting of 0.3 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Premier North for the quarter ended March 31, 2024 was approximately $1,900 or $7,600 on an annualized basis.
Premier North
Gross Production Group Plot
SUCCESS
Township 16, Range 16 W3
The Company holds a royalty interest in the Southwest Success Voluntary Unit - Oil operated by Veren Inc.
The royalty agreement with Veren consists of a 2.0% GORR on 100% of production on 100% working interest.
There is currently no production from the Success property.
The Company holds a royalty interest in the Southwest Success Voluntary Unit - Oil operated by Veren Inc.
The royalty agreement with Veren consists of a 2.0% GORR on 100% of production on 100% working interest.
There is currently no production from the Success property.
SOUTHEAST SASKATCHEWAN PROPERTIES
Township 2-7, Range 31 W1-13 W2
In Southeast Saskatchewan, Dominion holds royalty interests in the Benson Midale Beds Voluntary Unit No. 1, Benson Midale Beds Voluntary Unit No. 2, East Carnduff Unit and Weyburn Unit, as well as certain non-unit lands at Queensdale East.
In Southeast Saskatchewan, Dominion holds royalty interests in the Benson Midale Beds Voluntary Unit No. 1, Benson Midale Beds Voluntary Unit No. 2, East Carnduff Unit and Weyburn Unit, as well as certain non-unit lands at Queensdale East.
BENSON
Township 6, Range 7-8 W2
The Company holds a royalty interest in the Benson Midale Beds Voluntary Unit No. 1 and Benson Midale Beds Voluntary Unit No. 2 operated by Veren Inc.
The royalty agreement with Veren consists of a GORR based on a sliding scale 1/150 (5%-15%) on oil and 15% on natural gas on 50% of production on 100% working interest.
Daily production net to Dominion from Benson has recently averaged approximately 2 boe/d, consisting of 2 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Benson for the quarter ended March 31, 2024 was approximately $3,500 or $14,000 on an annualized basis.
The Company holds a royalty interest in the Benson Midale Beds Voluntary Unit No. 1 and Benson Midale Beds Voluntary Unit No. 2 operated by Veren Inc.
The royalty agreement with Veren consists of a GORR based on a sliding scale 1/150 (5%-15%) on oil and 15% on natural gas on 50% of production on 100% working interest.
Daily production net to Dominion from Benson has recently averaged approximately 2 boe/d, consisting of 2 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Benson for the quarter ended March 31, 2024 was approximately $3,500 or $14,000 on an annualized basis.
Benson Midale Beds Voluntary Unit No. 1 - Oil
Gross Production Group Plot
Benson Midale Beds Voluntary Unit No. 2 - Oil
Gross Production Group Plot
QUEENSDALE EAST
Township 6, Range 34 W1
At Queensdale East, Dominion holds royalty interests in the Queensdale E Frob-Alida Pool operated by Woodland Development Corp. The royalty payors for Queensdale East are Woodland and Freehold Royalties Ltd.
The royalty agreement with Woodland consists of a 4.0% GORR on 20% of production on 50% working interest. The royalty agreement with Freehold consists of a 4.0% GORR on 20% of production on 50% working interest.
Daily production net to Dominion from Queensdale East has recently averaged approximately 0.4 boe/d, consisting of 0.4 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Queensdale East for the quarter ended March 31, 2024 was approximately $5,300 or $21,200 on an annualized basis.
At Queensdale East, Dominion holds royalty interests in the Queensdale E Frob-Alida Pool operated by Woodland Development Corp. The royalty payors for Queensdale East are Woodland and Freehold Royalties Ltd.
The royalty agreement with Woodland consists of a 4.0% GORR on 20% of production on 50% working interest. The royalty agreement with Freehold consists of a 4.0% GORR on 20% of production on 50% working interest.
Daily production net to Dominion from Queensdale East has recently averaged approximately 0.4 boe/d, consisting of 0.4 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Queensdale East for the quarter ended March 31, 2024 was approximately $5,300 or $21,200 on an annualized basis.
Queensdale East
Gross Production Group Plot
WEYBURN
Township 5-7, Range 12-14 W2
At Weyburn, the Company holds a royalty interest in the Weyburn Unit operated by Whitecap Resources Inc. Dominion’s royalty is paid through Computershare Trust Company of Canada semi-annually.
The royalty agreement with Whitecap consists of a 2.5% GRT on 50% of production on 100% working interest.
Daily production net to Dominion from Weyburn has recently averaged approximately 0.1 boe/d, consisting of 0.1 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Weyburn for the quarter ended March 31, 2024 was approximately $4,200 or $16,800 on an annualized basis.
At Weyburn, the Company holds a royalty interest in the Weyburn Unit operated by Whitecap Resources Inc. Dominion’s royalty is paid through Computershare Trust Company of Canada semi-annually.
The royalty agreement with Whitecap consists of a 2.5% GRT on 50% of production on 100% working interest.
Daily production net to Dominion from Weyburn has recently averaged approximately 0.1 boe/d, consisting of 0.1 barrels of oil and natural gas liquids.
Royalty income net to Dominion from Weyburn for the quarter ended March 31, 2024 was approximately $4,200 or $16,800 on an annualized basis.
Weyburn Unit
Gross Production Group Plot
EAST CARNDUFF
Township 2-3, Range 33-34 W1
At East Carnduff, Dominion holds a royalty interest in the East Carnduff Unit - Oil operated by Saturn Oil & Gas Inc.
The royalty agreement with Saturn consists of a 2.0% GORR on 50% of production on 92.88% working interest and a 2.0% GORR on 100% of production on 7.119% working interest.
Daily production net to Dominion from East Carnduff is nominal.
Royalty income net to Dominion from East Carnduff for the quarter ended March 31, 2024 was nominal.
At East Carnduff, Dominion holds a royalty interest in the East Carnduff Unit - Oil operated by Saturn Oil & Gas Inc.
The royalty agreement with Saturn consists of a 2.0% GORR on 50% of production on 92.88% working interest and a 2.0% GORR on 100% of production on 7.119% working interest.
Daily production net to Dominion from East Carnduff is nominal.
Royalty income net to Dominion from East Carnduff for the quarter ended March 31, 2024 was nominal.
East Carnduff Unit - Oil
Gross Production Group Plot
ALBERTA PROPERTIES
Township 39-49, Range 15-24 W4
In Alberta, Dominion holds royalty interests in the Clive and Holden areas.
In Alberta, Dominion holds royalty interests in the Clive and Holden areas.
CLIVE
Township 39-41, Range 24 W4
At Clive, the Company owns the title to all mines and minerals in the south and northeast of Section 33-040-24W4. A portion of the lands are found within the Clive D-2 Unit No. 1 and Clive D-3A Unit No. 1 operated by Enhance Energy Inc. The units are currently producing oil and natural gas from the Leduc Formation. Enhance has an ongoing CO2 injection and enhanced oil recovery operation relating to the Clive units. The Company also has royalty interests in three non-unit wells operated by Ember Resources Inc. which produce coalbed methane from the Horseshoe Canyon Formation. The royalty payors for Clive are Ember and Enhance.
The royalty agreement with Enhance consists of a 12.5%-15.0% LORR the D-2 and D-3A Units on 100% of production on 25% working interest. The royalty agreement with Ember consists of a 12.5% LORR on 100% of production on 6.25% working interest and a 15% LORR on 100% of production on 6.25% working interest.
Daily production net to Dominion from Clive has recently averaged approximately one boe/d, consisting of one barrel of oil and natural gas liquids and 2 Mcf/d of natural gas.
Royalty income net to Dominion from Clive for the quarter ended March 31, 2024 was approximately $7,200 or $28,800 on an annualized basis.
At Clive, the Company owns the title to all mines and minerals in the south and northeast of Section 33-040-24W4. A portion of the lands are found within the Clive D-2 Unit No. 1 and Clive D-3A Unit No. 1 operated by Enhance Energy Inc. The units are currently producing oil and natural gas from the Leduc Formation. Enhance has an ongoing CO2 injection and enhanced oil recovery operation relating to the Clive units. The Company also has royalty interests in three non-unit wells operated by Ember Resources Inc. which produce coalbed methane from the Horseshoe Canyon Formation. The royalty payors for Clive are Ember and Enhance.
The royalty agreement with Enhance consists of a 12.5%-15.0% LORR the D-2 and D-3A Units on 100% of production on 25% working interest. The royalty agreement with Ember consists of a 12.5% LORR on 100% of production on 6.25% working interest and a 15% LORR on 100% of production on 6.25% working interest.
Daily production net to Dominion from Clive has recently averaged approximately one boe/d, consisting of one barrel of oil and natural gas liquids and 2 Mcf/d of natural gas.
Royalty income net to Dominion from Clive for the quarter ended March 31, 2024 was approximately $7,200 or $28,800 on an annualized basis.
Clive D-2 Unit No. 1
Gross Production Group Plot
Clive D-3A Unit No. 1
Gross Production Group Plot
HOLDEN
Township 46-49, Range 15-17 W4
At Holden, the Company holds royalty interests in the Holden Basal Quartz B Gas Sand Unit and Holden Basal Quartz C Gas Sand Unit operated by Pine Cliff Energy Ltd. and a royalty interest in one non-unit well PEOC Bruce 00/08-28-046-15W4/03 operated by Sequoia Resources Corporation.
The royalty agreement with Pine Cliff consists of a 5% GORR on 100% of production on 100% working interest.
There is currently no production from the Holden property.
At Holden, the Company holds royalty interests in the Holden Basal Quartz B Gas Sand Unit and Holden Basal Quartz C Gas Sand Unit operated by Pine Cliff Energy Ltd. and a royalty interest in one non-unit well PEOC Bruce 00/08-28-046-15W4/03 operated by Sequoia Resources Corporation.
The royalty agreement with Pine Cliff consists of a 5% GORR on 100% of production on 100% working interest.
There is currently no production from the Holden property.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday October 17, 2024.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday October 17, 2024.
NOTE REGARDING A SAYER PROCESS
On each and every offering brochure generated by Sayer, you will note the sentence “Sayer Energy Advisors does not conduct a “second-round” bidding process; the intention is to attempt to conclude a sale of the Properties with the party submitting the most acceptable proposal at the conclusion of the process.” What this means is that Sayer will not go back to multiple parties at the same time after bids are received, asking them all for a second bid. We determine which party submitted the most acceptable proposal and then we attempt to negotiate acceptable terms with that party in a “one-off” situation.
If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
In the extremely rare circumstance where two or more parties submit virtually identical proposals, we will contact all parties, we will advise them of this situation and we will ask them to submit a revised proposal. Once these are received, we will work with the party which has submitted the most acceptable proposal.If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
CONFIDENTIALITY AGREEMENT
Parties wishing to receive access to the confidential information with detailed technical information relating to this opportunity should execute the Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, mail (tpavic@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: summary land information, most recent royalty income statements and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Properties please contact Tom Pavic, Ben Rye or Sydney Birkett at 403.266.6133.