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July 19, 2019
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Franco-Nevada

Other Producing Energy Assets

Location: BC / AB / SK / MB, CANADA
Operator: Various
Royalty: ORR/FH: 0.5-20%

Franco-Nevada has significant interests in Western Canada which generate revenues primarily through lessor royalties and GORRs. Aside from the major producing assets of Weyburn and Orion, Franco-Nevada has 46 Other Producing Assets that generate revenue for the Company. These interests cover more than 2,315 km2.

In Saskatchewan and Manitoba, the assets are focused primarily in high quality oil plays and are operated by companies such as Crescent Point Energy, TORC Oil & Gas Ltd., and CNRL. The most significant producing assets are comprised of the Midale Unit and the Tidewater royalties. Franco-Nevada holds a 1.14% gross override royalty interest and a 1.59% working interest in the Midale Unit in Southeast Saskatchewan where Cardinal Energy produces approximately 4,000 Boe/d through CO2 Enhanced Oil Recovery (EOR) techniques. The Tidewater royalties in Saskatchewan generate oil production from the Shaunavon and other formations and are managed by various operators.

In Alberta and BC, the interests generate revenue primarily from natural gas production from shallow gas formations such as Milk River and Medicine Hat. In northern Alberta, the interests provide exposure to deeper conventional gas targets including the Shunda, Grosmont and Elkton formations. Franco-Nevada’s most significant assets in the region are the Edson property operated by CNRL and the Medicine Hat Consolidated Unit No.1, operated by Canlin Resources Partnership. Franco-Nevada has an approximate 15% overriding royalty in the Edson property where CNRL extracts gas and natural gas liquids by exploiting resources in the Cardium Formation. The Medicine Hat Unit has been producing gas since 1963 and is located approximately 257 kilometres southeast of Calgary. Other production comes from unitized and non-unitized wells, including gross overriding royalty positions in ten different Units across Alberta. Other operators on the interests include, Canadian Natural Resources Ltd. and Imperial Oil.

Revenue from the Other Producing assets represented 9.4% of total oil and gas revenue for the year.

ASSET HIGHLIGHTS:

  • Primarily quality oil plays in Saskatchewan and Manitoba
  • Exposure to shallow gas and deeper conventional gas in Alberta and BC
  • Interests cover more than 2,315 km2

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 8.1 $ 7.5 $ 5.6

Energy Exploration Asset