UPDATE 1-Franco-Nevada to buy royalty interest in oil field for C$400 mln
* Third-quarter adjusted earnings $0.31/share
* Revenue fell 7 pct to $105.2 mln
* Raises monthly dividend to 6 cents per share
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, currently produces about 26,000 barrels of oil per day of medium grade slightly sour crude, Franco-Nevada said.
The company expects the deal to close by Nov. 30 and to immediately add to earnings.
Franco-Nevada, which funded the deal with working capital, provides upfront cash in exchange for future royalties. It holds interests in precious metal, base metal, and oil and gas projects around the world.
The company's earnings rose to $52 million, or 36 cents per basic share, in the third quarter, from $44.1 million, or 35 cents per basic share, a year earlier. Continued...