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    Canadian Topaz Energy doubles income in Q2


Company holds royalty interests on substantially all of Tourmaline Oil's lands

by: Dale Lunan

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Canadian Topaz Energy doubles income in Q2

Topaz Energy, a hybrid royalty and infrastructure company spun out in October 2019 by Tourmaline Oil, said July 29 it had doubled its Q2 revenue and other income over Q2 2020, its first quarter of full operations.

Revenues from royalty production, processing services and other sources increased to C$40.9mn (US$32.8mn) from $$20.2mn a year ago, while free cash flow also doubled, to C$37.2mn from C$17.3mn.

Royalty production in Q2 2021 averaged 12,265 barrels of oil equivalent/day, up from 9,981 boe/d in Q2 2020, with natural gas output rising to 65.7mn ft3/d from 55.05mn ft3/d and liquids production increasing to 1,311 barrels/d from 715 b/d. Once its recently announced royalty acquisition of 296,000 gross acres of Tourmaline's northeast BC Montney lands closes, Topaz will own royalty interests on virtually all of Tourmaline’s acreage.

“Topaz is well poised for growth as Tourmaline has shifted its focus to optimisation of organic growth opportunities given its significant consolidation initiatives have been completed,” Topaz said.

And while it awaits royalty earnings growth on the Tourmaline assets, Topaz said it will continue to pursue accretive acquisitions with third parties and evaluate other opportunities to diversify its investment portfolio.