Location: BC / AB / SK / MB
Royalty: ORR/FH: 0.5-20%
Franco-Nevada has a significant land position in Western Canada which generates revenues primarily through lessor royalties and GORRs. Aside from the major producing assets of Weyburn, Midale and Edson, Franco has 53 Other Producing Assets which generate revenue for the Company. The land position consists of more than 2,500 km2.
In Saskatchewan and Manitoba, the lands are focused primarily in high quality oil plays including, the Shaunavon and Mississippian. Lands are operated by companies such as Crescent Point Energy, NAL Resources and CNRL. The production in these areas is almost entirely oil and the most significant contributor within the land position is the Tidewater royalty which generates oil production from the Shaunavon and other formations.
In Alberta and BC, the lands generate revenue primarily from natural gas production from shallow gas formations such as Milk River and Medicine Hat. In northern Alberta, the lands provide exposure to deeper conventional gas targets including the Shunda, Grosmont and Elkton formations. Production comes from unitized and non-unitized wells, including gross overriding royalty positions in eleven different Units across Alberta. Units include the Medicine Hat Consolidated Unit No.1, Ghost Pine Unit and Inverness Unit No.1 with the most significant contributor being the Medicine Hat Unit operated by Centrica Energy. The Medicine Hat Unit has been producing gas since 1963 and is located approximately 257 kilometres southeast of Calgary. Other operators on the lands include, ConocoPhillips, ARC Resources, Canadian Natural Resources Ltd. and Imperial Oil.
Revenue from the Other Producing assets represented 12% of total oil and gas revenue for the year. At December 31, 2015 Proved Reserves were 870 Mboe.
|Total Revenue to FNV ($ million)