Freehold Royalties Ltd400, 144 – 4 Avenue SW, Calgary, Alberta, Canada
Since Oct, 2016
Freehold Royalties Ltd. is a dividend-paying oil and gas company based in Calgary, Alberta. Our royalty interests are a major contributor to our operating and financial performance and are not subject to expenses such as operating and capital costs. Our assets generate income from crude oil, natural gas, natural gas liquids, and potash. Growth is achieved through ongoing development activity on our extensive land base spanning approximately three million gross acres, and through acquisitions.
Freehold has no employees. Day-to-day operations are managed by a wholly owned subsidiary of Rife Resources Ltd. To learn more about Rife visit www.rife.com.
Freehold does not have any employees. Under a Management Agreement, Freehold's assets are managed by the employees of Rife Resources Ltd. (Rife). Rife is a private oil and gas company that has been in operation for over thirty years.
Governance and ethics
The Governance, Nominating and Compensation ("GNC") Committee establishes the company's governance principles and practices and reviews corporate policies, including our Code of Conduct and Conflict of Interest Policy. Rife employees and consultants are required to adhere to Freehold's Code of Conduct and are expected to conduct business with integrity and high ethical standards. The GNC Committee monitors the performance of the Manager on an ongoing basis.
Environment, health and safety
Most of Freehold's assets are royalties operated by third parties. As a royalty owner, environmental liability, health and safety and other risks arising out of these operations are not typically direct risks for Freehold. Our business model is dependent on our industry partners operating in a responsible manner. There are thirty companies that account for approximately 80% of Freehold's oil and gas royalty revenue stream. The majority of these companies are members of the Canadian Association of Petroleum Producers (CAPP) or the Explorers and Producers Association of Canada (EPAC).
Sustainability
Freehold has a profitable niche of owning oil and gas royalties, including certain mineral titles that are held in perpetuity. The foundation of Freehold's successful business model is a commitment to long-term sustainability. As our assets are mainly royalty assets, we have low capital requirements. When pursuing acquisitions, we focus on properties that can offer an attractive rate of return on our investment.
Support for communities
Freehold supports not-for-profit organizations addressing education, health and community services focused on the needs of children and families.
Focused on Royalties
What is a Royalty?
A royalty is a payment based on a percentage of the gross well production without the working interest owners’ associated responsibility for any expenses.
We own both mineral title rights (which result in 'lessor' royalties) and gross overriding royalties, but our mineral title lands is our most valuable asset, as we own them in perpetuity.
- Lessor royalties represent the mineral title owner’s share of production, free of production expenses. Mineral title lands are held in perpetuity. When a company wants to drill for oil or gas, it must negotiate for the mineral rights with the mineral title owner (the Crown or a freehold owner). When the mineral title owner leases those rights to a company to drill for oil or gas, it generally retains a percentage share of production, called a lessor royalty. Freehold's ownership in mineral titles ranges from 10% to 100%. Leases provide for a royalty payment ranging from 10% to 22.5% of production. For example, if our ownership is 50% of the mineral title and the royalty rate applicable to the lease is 20%, then we are entitled to receive the proceeds from the sale of 10% of the oil or natural gas produced (50% x 20% = 10%).
Overriding royalties arise usually as a result of: i) providing capital in exchange for granting the royalty; or ii) converting a participating interest in a joint venture relationship into a royalty. Overriding royalties are contractual obligations that expire upon the termination of the lease(s) or agreement(s).
Company Name | Freehold Royalties Ltd |
Business Category | Oil & Gas |
Address | 400, 144 – 4 Avenue SW Calgary Alberta Canada |
President | Thomas J. Mullane |
Year Established | NA |
Employees | NA |
Memberships | NA |
Hours of Operation | NA |
- Environment