High Peak Royalties Ltd (ASX:HPR) has recorded a 28% hike in its June quarter revenues, mainly due to the sustained rising oil prices since the lows of April 2020.
In the quarter, revenue came in at $119,367, up by $24,282 from the March quarter.
Post-June quarter activities
Subsequent to the June quarter, the company settled payment on two royalties - $100,000 for the Admiral Bay royalty and the newly-acquired Green Hydrogen Royalty.
Cumulatively, this brings the funds spent on new royalty acquisitions subsequent to the June quarter to $400,000.
HPR acquired rights, including a royalty over a Green Hydrogen project for $300,000, which provides a 1% royalty over hydrogen sales and a novel catalyst for producing hydrogen via steam methane reforming or steam bio-methane reforming.
The move extends the scope of its existing portfolio, which contains diversified high-value resource royalties around the world, expanding into sustainable energy and renewable projects.
US portfolio revenue up
Its revenue from the US increased by 28% to $119,367 in the June quarter from the $93,085 recorded in the March quarter.
In the quarter, interest was paid for the Macquarie Bank Financing Facility amounting to $27,873.
Amadeus Basin update
On its royalty over Mosman Oil and Gas Ltd (AIM:MSMN)’s Amadeus Basin Permit EP 145, the company said airborne gravity and gradiometry surveys had been approved by the relevant government authorities.
The airborne survey was completed on July 21, 2021, which is a big step in the exploration program as it is the first time data will be acquired for the whole permit, providing valuable information across the entire 818 square kilometres permit area.
This survey uses the high-resolution Falcon Airborne Gravity Gradiometry System, which can image salt and subsalt geometry across a range of depths.
The technique measures the density contrast of the different rock layers with a higher level of resolution and sensitivity than standard gravity tools, improving confidence in the interpretation of high density and gravity features, including salt-related structures.
Queensland royalties
HPR continues to monitor permits in Queensland where it has royalties, including those operated by Shell (formerly BG, QGC) where drilling has identified significant coal-seam methane resources.
The areas adjacent to the HPR royalty areas have been developed and are producing.
Western Australia royalties
HPR has royalties on several high potential offshore permits, including one near the large Dorado discovery operated by Santos Limited.
The company also acquired a royalty package from Orion Resource Partners in April 2021 in a project based in the Kimberley Region.
There is extensive history with the project, with geological advancements enhancing the value of the project since its beginning.