Source Rock Royalties Achieves Record Revenue and Production
Source Rock Royalties Reports Impressive Annual Achievements
Source Rock Royalties Ltd. (TSXV: SRR), renowned for its oil and gas royalty ventures, recently announced groundbreaking operational and financial highlights. The year showcased the highest recorded royalty production and revenue in the company's impressive 12-year history.
2024 Operational Highlights
In 2024, Source Rock made remarkable strides forward:
- Royalty Production: The company reported an impressive average production of 251 barrels of oil equivalent per day (boe/d), comprised of 95% oil and natural gas liquids. This marks a significant boost of 21% when compared to the previous year.
- Royalty Revenue: With total royalty revenue of $7.68 million, Source Rock experienced a 16% increase from 2023, highlighting its successful strategies and growth.
Fourth Quarter Results and Growth
The fourth quarter of 2024 reflected similar upward trends:
- Royalty Production: In Q4, production rose to 256 boe/d, with a remarkable 97% from oil and NGLs, a 17% jump compared to Q4 of the prior year.
- Royalty Revenue: Revenue for Q4 reached $1.87 million, which represents a 9% increase from the same quarter in 2023.
Future Prospects and Expansion Efforts
Looking ahead, Source Rock aims to continue leveraging its strategic acquisitions and the successful drilling programs initiated in 2023. Notably, the company reported new horizontal wells that began production on its royalty lands, with various wells spread across multiple key regions. For instance, 43 new horizontal wells boosted production across areas including 20 wells from the Frobisher resource, 18 investments in Clearwater, and additional contributions from the Viking and Dina wells.
As of the end of February 2025, Source Rock's working capital was approximately $5 million, reflecting a notable increase of 120% compared to **the previous year**. This solid foundation allows the company to pursue further royalty acquisitions aggressively, enhancing its portfolio and diversifying its production base.
Strategic Goals of Source Rock
Source Rock maintains a clear focus on high netback oil royalties while aspiring to expand its holdings in undeveloped royalty lands. The company’s approach is distinctly centered around sustainability and scalability, striving to increase its operational funds while minimizing costs. This focus is framed by strategic partnerships which allow Source Rock to identify and acquire both existing and new royalty opportunities.
About Source Rock Royalties Ltd.
A leader in the oil and gas royalty market, Source Rock targets balanced growth and yield strategies, effectively utilizing operational funds for strategic acquisitions and steady dividend payouts. Their business model is underpinned by a commitment to maintaining strong operational practices and engaging deeply with their partners for the successful identification of new resources. By focusing on enhancing its corporate structure and ensuring high netbacks from production, Source Rock is well-positioned for continued success in the dynamic energy market.
Frequently Asked Questions
What significant achievements did Source Rock Royalties report for 2024?
Source Rock reported record-high royalty production and revenue, achieving 251 boe/d and $7.68 million in revenue.
How did the fourth quarter of 2024 perform?
Q4 of 2024 showed a production increase to 256 boe/d and revenue rising to $1.87 million, indicating strong quarterly growth.
What is the company’s strategy for growth?
Source Rock aims to expand its royalty production through new acquisitions and partnerships, along with a strong focus on high netback oil royalties.
Where are Source Rock's primary operational areas?
The company primarily focuses on royalty interests in Saskatchewan and Alberta, where significant new wells are being developed.
What is Source Rock's commitment to sustainability?
Source Rock is dedicated to maintaining a sustainable and scalable business model, focusing on achieving strong returns while minimizing costs and environmental impacts.
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