Operator: Apache Canada Ltd.
Royalty: ORR: 1.14% / WI: 1.59%
The “Midale Unit” was discovered in 1953 and unitized in 1964 for the purpose of implementing a pressure maintenance scheme by water injection. The Midale Unit is located in southeast Saskatchewan approximately 40 km southeast of the city of Weyburn and encompasses 56 km2 on a gross basis (net 1.5 km2). Franco-Nevada holds a 1.14% gross override royalty interest and a 1.59% working interest in the Midale Unit. Apache Canada Ltd. is the operator.
The Midale Unit produces approximately 4,600 Boe/d and like the neighbouring Weyburn Unit, employs CO2 enhanced oil recovery (“EOR”) techniques. According to Apache, CO2 injection has extended Midale’s life by more than 30 years and over the full life of the project, 8.75 million tonnes of carbon dioxide will be sequestered.
For 2015, revenue received by Franco-Nevada from the Midale Unit was $1.7 million and light/medium oil production net to Franco-Nevada was 116 Boe/d. Franco-Nevada takes product-in-kind for the working interest portion of this production and markets it through a third party marketer. As of December 31, 2015, Franco-Nevada’s Proved Reserves for the Midale Unit were 519 Mboe.
|Total Revenue to FNV ($ million)