Calgary-based Freehold Royalties said March 4 it closed on two additional royalty transactions for $3.8 million to complement its positions in Permian Basin and Bakken. These assets are expected to add 75 boed to the company’s average 2021 production.
The two acquisitions follow a U.S. royalty buy for $58 million that closed Jan. 5 weighted toward Permian Basin and Eagle Ford. This acquisition included 400,000 gross drilling unit acres of mineral title and overriding royalty interests across 12 basins in 8 states. Production for 2021 associated with these acquired assets was forecast at 1,250 boed.
David M. Spyker, president and CEO, said, “The groundwork we set in 2020 has positioned us for an exciting 2021 as we return to growth, projecting a 10-15 percent increase in royalty production year over year.”