Franco-Nevada to buy royalty interest in oil field for C$400 mln

Tue Nov 6, 2012 5:59pm EST
 
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Nov 6 (Reuters) - Franco-Nevada Corp said it will buy an 11.7 percent net royalty interest in an oil field in Saskatchewan from Penn West Petroleum Ltd for C$400 million in cash.

The gold-focused royalty company said it will buy the royalty interest in the Weyburn oil unit in southeast Saskatchewan.

The Weyburn unit, operated by Cenovus Energy Inc, has current production levels of about 26,000 barrels of oil per day of medium grade slightly sour crude.

Toronto-based Franco-Nevada provides upfront cash in exchange for future royalties and holds interests in precious metal, base metal, and oil and gas projects around the world.