Topaz Energy announces tuck-in acquisition of infrastructure and royalty assets in core operation areas
by CM staff
The acquisition will be funded through Topaz's existing credit facility and is expected to close on July 31, subject to the satisfaction of customary closing conditions.
CALGARY —Topaz Energy Corp., has entered into definitive agreements to acquire a 49.9 per cent working interest in a newly constructed and commissioned sweet natural gas processing facility and associated crude oil battery in the Wembley area in addition to gross overriding royalty interests in the Clearwater and Charlie Lake operating areas in Alberta which includes 17,000 gross undeveloped acres, for total cash consideration of $39.5 million.
While 100 per cent of the facility Interests are supported by a 15-year fixed take-or-pay contractual commitment during which Topaz is not responsible for operating or maintenance costs. The tuck-in acquisition is expected to provide approximately $6 million of annual revenue to Topaz before consideration of royalty revenue growth from further acreage development.
The acquisition will be funded through Topaz’s existing credit facility and is expected to close on July 31, 2023, subject to the satisfaction of customary closing conditions.
