CALGARY, Sept. 30, 2014 /CNW/ -
Formation of Trust
RRIT was formed as a royalty income trust on June 11, 2013. The trust was co-founded by Rick F. (Buck) Braund and Randy Best. Rick F. Braund was co-founder and served as initial chairman of Peyto Exploration and Development Corp., Petrus Resources Ltd. and Gear Energy until his retirement in July 2013. Randy Best, P.Eng., was Sr. Vice President, Corporate Development at Baytex Energy Ltd. from its inception as an income trust until his retirement in 2012.
The Board of Directors of RRIT is comprised of Rick F. Braund, Randy Best, David Ross, partner and oil and gas tax specialist at Burnet, Duckworth & Palmer LLP, Kenneth Rowan, former Managing Director, Institutional Sales at FirstEnergy Capital Corp., and Harry Jung, former president of GLJ Petroleum Consultants.
RRIT is a private mutual fund trust focused on creating value for its unitholders by providing long-term, sustainable cash distributions through disciplined and creative royalty and non-operated working interest investments. RRIT invests in conventional oil and natural gas properties primarily in the Western Canadian Sedimentary Basin and also has royalty interests in southwestern Ontario.
From inception in 2013 through to mid year 2014, RRIT acquired various producing royalty interests in the Deep Basin and Peace River Arch of Alberta.
During the third quarter of 2014, RRIT acquired royalty and non-operated working interest production, including associated production facilities and undeveloped land, in the Deep Basin and Brazeau areas of Alberta through three transactions totaling approximately $105MM.
Following these acquisitions, RRIT currently produces in excess of 2,300 BOE/D comprised of liquids-rich natural gas and oil. The acquisitions were funded by private equity investors, institutions and the Trust's credit facility.
RRIT welcomes communication from entities or private interests who may wish to divest and monetize producing royalty assets, undercapitalized oil and gas opportunities or non-operated working interests.
An updated website with further details is forthcoming. Any requests for information or general inquiries may be directed to Rick F. Braund or Randy Best.
This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks, uncertainties, and assumptions, certain of which are beyond RRIT's control. Such risks, uncertainties, and assumptions include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, including banking arrangements, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. RRIT's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that RRIT will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to RRIT or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and RRIT does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
SOURCE: Reserve Royalty Income Trust