Maple Leaf 2013 Oil & Gas Income Limited Partnership - Announces Acquisition of Gross Overriding Royalties For $7 Million


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06/12/2014 [ACCESSWIRE]

Vancouver, BC / ACCESSWIRE / June 12, 2014 / Maple Leaf 2013 Oil & Gas Income Limited Partnership ("Maple Leaf" or the "Partnership") is pleased to announce that it has entered into a purchase and sale agreement ("Agreement" or "Transaction") with Waldron Energy Corporation ("Waldron") to purchase petroleum and natural gas gross overriding royalties for a total of $7 million. The Agreement is effective June 10, 2014, is subject to customary closing conditions, and is expected to close within two weeks.

Transaction Highlights

- Maple Leaf will provide a cash payment of $7 million to Waldron at closing;
- Waldron will reserve a 3% gross overridding royalty ("GORR") in favour of Maple Leaf on all producing and nonproducing lands owned by the company;
- Waldron will commit to drill two Ferrybank Falher wells within seven months, and will reserve an additional 7% GORR payable to Maple Leaf on these two wells;
- If Waldron fails to drill either of the two Ferrybank Falher horizontal wells, or a mutually agreed upon substitute, Waldron will refund $750,000 per well to Maple Leaf; and
- Maple Leaf granted Waldron a 15 month option to repurchase all gross overriding royalties associated with the Agreement at a price of $9.1 million less royalties paid under the Agreement and less two thirds of any amounts refunded, if any, as a result of any failure to drill the Ferrybank wells.

"The Waldron Transaction provides our unitholders with immediate cash flow from a well-diversified existing production base as well as exposure to future activities on approximately 100,000 net acres of land in Alberta," commented Maple Leaf President Adam Thomas. "We see significant value and development upside in the assets."

The Partnership is also pleased to announce that it closed an unrelated royalty acquisition in the Ferrier area of Alberta on May 29, 2014 for total consideration of $380,000. Approximately $4.4 million remains uncommitted within the Partnership.

About Waldron

Waldron is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are currently listed on the Toronto Stock Exchange under the trading symbol "WDN". Additional information regarding Waldron is available under the corporation's profile at www.sedar.com or at the corporation's website, www.waldronenergy.ca.

FOR FURTHER INFORMATION 

Please contact Hugh Cartwright, Chairman or Shane Doyle, CEO

MAPLE LEAF 2013 OIL & GAS INCOME LIMITED PARTNERSHIP

609 Granville Street, Suite 808, Vancouver, BC V7Y 1G5
Tel: 604.684.5750 | Toll Free: 866.688.5750 | Fax: 604.684.5748
Email: info@MapleLeafFunds.ca | Web: www.MapleLeafFunds.ca

This news release is provided is strictly for information purposes only and shall not constitute an offer to sell or an advertisement, solicitation or recommendation of any offer to buy securities. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. 

 

SOURCE: Maple Leaf 2013 Oil & Gas Income Limited Partnership 

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