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CALGARY, AB, March 24, 2026 /CNW/ — Source Rock Royalties Ltd. (“Source Rock”) (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil royalties and Crown mineral leases, announces unaudited(1) operational and financial highlights for fiscal 2025 and the fourth quarter of 2025 (“Q4 2025”), and the sale of certain Crown mineral leases for cash proceeds and a gross overriding royalty (“GORR”).
Unaudited(1) annual results for fiscal 2025 were:
- Royalty Production – 230 boe/d (92% oil & NGLs), a decrease of 8% compared to 2024.
- Royalty Revenue – $6.03 million, a decrease of 22% compared to 2024.
Unaudited(1) results for Q4 2025 were:
- Royalty Production – 226 boe/d (91% oil & NGLs), a decrease of 12% compared to Q4 2024.
- Royalty Revenue – $1.33 million, a decrease of 29% compared to Q4 2024.
Audited annual and Q4 2025 financial statements and management’s discussion and analysis, as well as oil and gas reserves information as of December 31, 2025, will be filed on SEDAR+ (www.sedarplus.ca) and announced by news release on or before April 30, 2026.
Sale of Crown Mineral Leases
Source Rock also announces the sale of two sections of oil sands leases in Alberta (the “Lands”) to a top-tier intermediate operator with industry leading expertise in drilling multi-lateral heavy oil wells.
Source Rock acquired its 50% interest in the Lands for $110,000. Pursuant to the sale of the Lands, Source Rock has received $225,000 for its interest and has retained a 1.75% GORR in 100% of production from the Lands.
Following the sale of the Lands and including the recent acquisition of an additional three sections of oil sands leases, Source Rock continues to own a 50% interest in 32 sections (20,480 acres) of oil sands and petroleum and natural gas leases in Alberta.
President’s Message
2025 was another strong year for Source Rock as a result of consistent drilling activity on our royalty lands. In total, 33 new horizontal wells began producing on our royalty lands: 13 Frobisher wells and 1 Midale well in S.E. Saskatchewan, 13 Clearwater wells in central Alberta, 5 Viking wells in west-central Saskatchewan and 1 Dina well in east-central Alberta. Prior to the recent rise in oil prices, we observed the pace of drilling activity on our royalty lands slow materially in the second half of 2025 and early in 2026, as WTI oil prices remained below $70 USD for an extended period of time. We are unsure whether the current events driven increase in oil prices will result in renewed near-term drilling activity.
We are very pleased to complete the first transaction with respect to our Crown mineral leases. It is particularly exciting to partner with such a high-quality operator that we are confident will maximize the potential of the Lands, which we are retaining a GORR in. Efficiently achieving ‘proof of concept’ for our new organic royalty creation strategy has not only provided us with a return on our initial investment (105% in 6 months) but it has also illustrated how our leasing activity can grow our portfolio of oil royalties through transactions with well-capitalized and proven operators. We are actively engaging with our industry relationships in an effort to generate additional transactions with respect to our Crown mineral leases. We also continue to evaluate and pursue the acquisition of additional Crown mineral leases.
We are also actively evaluating additional producing oil royalty acquisitions with the goal of using our cash balance to expand our base production and diversify our exposure to undeveloped land and future potential drilling locations.
Brad Docherty, President & CEO
About Source Rock Royalties Ltd.
Source Rock is a pure-play oil and gas royalty company with an existing, oil focused portfolio of royalty interests concentrated in southeast Saskatchewan, central Alberta and west-central Saskatchewan, as well as ownership in oil sands and petroleum and natural gas leases in Alberta. Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock’s strategy is premised on maintaining a low-cost corporate structure and achieving a sustainable and scalable business, measured by growing funds from operations per share and maintaining a strong netback on its royalty production.
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Unaudited Information: All financial information contained in this news release for the year ended December 31, 2025 and for the fourth quarter of 2025, such as royalty revenue, is based on estimated unaudited financial information which has been disclosed in accordance with generally accepted accounting principles in Canada and has not been reviewed by Source Rock’s auditor. These estimated results are subject to change upon completion of the audited financial statements for the year ended December 31, 2025, and changes could be material. Source Rock anticipates filing its audited financial statements and related management’s discussion and analysis for the year ended December 31, 2025 on SEDAR+ on or before April 30, 2026. |
Forward-Looking Statements
This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include statements regarding Source Rock’s dividend strategy and the amount and timing of future dividends (and the sustainability thereof), expectations regarding commodity prices, Source Rock’s growth strategy and expectations with respect to future royalty acquisition and partnership opportunities, the ability to complete such acquisitions and establish such partnerships, Source Rock’s intention to pursue additional Crown land leases, Source Rock’s ability to enter into farm-out transactions for the development of the land leases on terms acceptable to Source Rock or at all, and the potential for future drilling on Source Rock’s royalty lands, including pursuant to such farm-out transactions. Such statements and information are based on the current expectations of Source Rock’s management and are based on assumptions and subject to risks and uncertainties. Although Source Rock’s management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Source Rock. Although Source Rock has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and Source Rock undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise.
Oil and Gas Advisory
Source Rock has adopted the standard of 6 mcf: 1 bbl when converting natural gas to oil equivalent. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl may be misleading as an indication of value.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
SOURCE Source Rock Royalties Ltd.
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