High Peak Royalties Ltd (ASX:HPR) has achieved an 83% increase in cash receipts from royalties compared to the previous two quarters.
During the March 2019 quarter, cash receipts from royalties were $163,796 compared to about $197,000 over the half year to December 2018.
The surge in royalties is primarily due to the acquisition of Planet Gas USA (completed in the December quarter) and the oil price recovery positively influencing royalty income.
Due to the timing of payments, current strong oil prices will be reflected in the next quarter.
US
High Peak continues to receive revenue from existing multiple royalties in the US. Oil prices continued to increase over the March 2019 quarter after the low ebb in December.
Gas prices have oscillated throughout the period, however they have remained steady on average overall.
Queensland
High Peak continues to receive royalties on the Peat Gas Field.
Origin Energy Ltd (ASX:ORG) has previously reported that it has drilled and intends to flow test the South Burunga-2 deep gas well that will test the large potential of the Bowen Basin below the currently producing shallow Surat Basin coal seam gas.
Northern Territory
Santos Ltd (ASX:STO) revealed on April 16 that the Dukas-1 well was spudded.
High Peak continues to monitor the progress on this well, as the company holds a 1% royalty on this permit.
It is expected that this well will have a total depth of 3,600 m and is expected to provide Helium and Hydrogen as well as large volumes of hydrocarbons.