PrairieSky Royalty Ltd

PrairieSky Royalty Ltd. (TSX - PSK) commenced active business in May 2014 through the acquisition of fee simple lands from Encana Corporation and concurrent initial public offering. PrairieSky Royalty’s business model is to acquire and manage royalty lands, in order to generate significant free cash flow through indirect third-party oil and gas investments at a relatively low risk and cost to PrairieSky Royalty. With approximately 7.9 million acres of land, PrairieSky Royalty offers one of the largest independently owned portfolios of fee simple mineral title and gross overriding royalty lands in Canada.

PrairieSky Royalty focuses on adding per share value for its shareholders through actively managing and leasing fee title lands, applying expertise in royalty agreement compliance and revenue collection and acquiring complementary royalty assets.

Third-party development of lands in which PrairieSky Royalty holds the mineral title and/or a royalty interest provides the Company with sustainable royalty revenues with no oil and gas operating expenses, limited capital costs and no environmental liabilities or reclamation obligations associated with oil and natural gas development incurred on the part of the Company.

PrairieSky Royalty has one of the largest portfolios of Fee Simple¹ lands in western Canada. Fee Simple ownership means PrairieSky Royalty owns the sub-surface mineral rights for these lands. 

PrairieSky Royalty receives royalty revenues² from third-party development of petroleum and natural gas produced from its properties.

It does not directly conduct operations to explore for, develop or produce petroleum or natural gas. 

As a result, PrairieSky Royalty incurs minimal or no operating costs, capital costs, environmental liabilities or reclamation obligations associated with petroleum and natural gas development.

PrairieSky Royalty's growth strategy is to encourage third party oil and gas producers to actively develop its properties, while acquiring additional petroleum and natural gas assets that provide it with medium-term to long-term value enhancement potential.

PrairieSky Royalty focuses its growth strategy in the following areas:

- actively manage organic growth of the Company's royalty revenue from the development of its properties

- proactively monitor and manage its portfolio of properties to ensure third-party adherence to lease terms and contractual provisions and accurately account for and collect royalties

- selectively pursue strategic business development opportunities that are relatively low risk and accretive to PrairieSky Royalty shareholders