Operator: Canadian Natural Resources Limited
Royalty: ORR: 15%
The “Edson Property” is located approximately 209 km west of Edmonton, Alberta and encompasses over 103 km2 (net 15.5 km2) of which approximately 13 km2 on a gross basis (net 2 km2) are currently undeveloped. Franco-Nevada has an approximate 15% overriding royalty in this property. The wells are operated by Canadian Natural Resources Limited (“CNRL”). For 2015, revenue received by Franco-Nevada from the Edson Property was $1.6 million. For the same period, the property produced approximately 2.0 MMcf/d of natural gas and 82.9 Bbls/d of NGLs totalling 412 Boe/d of production net to Franco-Nevada from 130 gross (net 20) producing gas wells mainly from the Upper Cretaceous Cardium Formation, with lesser amounts from the Viking, Gething, Cadomin and Bluesky Formations. As of December 31, 2015, Franco-Nevada’s Proved Reserves for the Edson Property were 738 Mboe.
Gas is processed at the CNRL operated Galloway, Edson West and Ansell gas plants which extract natural gas liquids. The main reserves bearing formation in the Edson Property area is the Upper Cretaceous Cardium Formation. The Edson Property lies in an area of northwest southeast trending fault traces where the faults ramp up through the Cardium Formation. The faults dip to the west. The best Cardium wells, both vertical and especially horizontal, have targeted the hanging wall of the updip leading edge of Cardium sand cycles. This potentially helps the wells take advantage of the better productivity associated with narrow areas of higher fracture density induced by the higher stresses related to deformation along the leading edges of the faults.
|Total Revenue to FNV ($ million)