Page 18 - NorthAmOil Week 46

NorthAmOil NEWS IN BRIEF NorthAmOil

POLICY Natural Resources Canada is currently Cenovus owning or controlling, directly or
accepting applications for the INRP. indirectly, greater than 20% of the issued and
Government of Canada NATURAL RESOURCES CANADA, November 13, outstanding common shares on completion
of the transaction. Headwater has now
2020
extends funding to increase received written consents from Headwater
shareholders holding in excess of 60% of
indigenous participation in UPSTREAM the issued and outstanding common shares
indicating that such shareholders consent to,
oil and gas infrastructure Headwater Exploration and approve, the transaction, including the
issuance of the common shares and warrants
development announces receipt of to Cenovus. As a result, Headwater will not
be required to hold the special meeting of
The informed and meaningful participation shareholder written its shareholders that it intended to hold on
of indigenous peoples in oil and gas projects December 21, 2020.
provides important economic opportunities consent for transaction HEADWATER EXPLORATION, November 18,
for their communities. 2020
Canada’s Minister of Natural Resources, with Cenovus Energy
the Honourable Seamus O’Regan, today Rising Phoenix Royalties
announced up to CAD12mn in funding over Headwater Exploration announces it has
two years for the Indigenous Natural Resource received written consents from shareholders announces Monroe County
Partnerships (INRP) program for Indigenous holding a majority of the issued and
communities and organisations in British outstanding common shares of Headwater – Utica shale, natural gas
Columbia and Alberta to further increase approving the Company’s previously
their participation in economic opportunities announced transaction with Cenovus Energy. royalty acquisition
related to oil and gas infrastructure Pursuant to the Transaction, Headwater will
development. acquire 100% of Cenovus’ assets in the Marten Rising Phoenix Royalties (RPR) announces
This announcement builds on the success Hills area of Alberta. a 100% natural gas royalty acquisition in the
of the 2019-20 Indigenous Natural Resource Headwater will issue 50mn common Utica shale, Monroe County, OH, from an
Partnerships programme by extending it to shares and 15mn warrants to purchase undisclosed seller. This acquisition is RPR’s
support projects that enhance the capacity common shares exercisable at CAD2.00 per third 2020 Appalachian Basin transaction.
of Indigenous communities to capitalise on Common Share with a three-year term to “Given the Utica’s production potential
business opportunities, facilitate access for Cenovus as a portion of the consideration due to significant proven recoverable reserves,
Indigenous communities and organisations for the acquisition of the assets under the this acquisition is anticipated to generate
to resources, and support community and Transaction. As a result, on closing of the stable cash flow for many years,” notes Janie
regional engagement related to oil and gas transaction Cenovus will own or control, Widman, Vice President of Rising Phoenix
infrastructure projects. directly or indirectly, approximately 26% Royalties. “From a royalty owner’s perspective,
The response to the initial programme of the issued and outstanding common asset divestitures like this one often makes
was a success: 35 groups received funding shares (assuming no warrants are exercised) sense to settle estates or optimise investment
for projects ranging from CAD15,000 to and approximately 31% of the issued and portfolios. Our goal is to provide owners with
CAD1.35mn, supporting a range of initiatives outstanding common shares (assuming all thoughtful guidance on what makes the best
responsive to community priorities, including warrants are fully exercised). financial sense for their unique divestiture.”
the development of business plans and In accordance with the policies of the RPR helps mineral royalty owners with
feasibility studies, training opportunities that Toronto Stock Exchange (the TSX), the solutions in selling their mineral assets to
facilitated employment, forums on regional approval of Headwater shareholders is achieve financial goals, including but not
interests, and other resources and supports required for the transaction as it will result limited to estate liquidation, investment
that enhanced Indigenous participation in oil in the issuance of greater than 25% of the portfolio diversification, funding retirement,
and gas infrastructure development. issued and outstanding common shares and maximising tax benefits, purchasing real
estate, and immediate financial need.
Montage Resources, well site operator of
the producing royalty interest acquired by
RPR, operates over 325 producing horizontal
wells on 195,000 + net effective undeveloped
core acres in the Appalachian region. Its
current focus is on development of the
Marcellus and Utica shales.
Montage Resources and Southwestern
Energy announced earlier this year,
a definitive merger agreement where
Southwestern Energy will acquire Montage
Resources.
RISING PHOENIX ROYALTIES, November 17,
2020

P18 www. NEWSBASE .com Week 46 19•November•2020