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TOPAZ ENERGY TOPAZ ENERGY CORP . ANNOUNCES 2020 FINANCIAL , OPERATING AND RESERVE RESULTS AND PROVIDES 2021 GUIDANCE UPDATE March 17 , 2021 Calgary , Alberta - Topaz Energy Corp. ( TSX : TPZ ) ( “ Topaz ” or the “ Company ” ) is pleased to announce financial results for the three months and year ended December 31 , 2020 . Despite the challenging backdrop of COVID - 19 , Topaz achieved the strategic objectives it established for 2020 demonstrating the resiliency of its business model . During 2020 , Topaz established an independent management team , expanded its board of directors , delivered a reliable and sustainable $ 0.20 per share quarterly dividend and completed its initial public offering , raising $ 250.1 million and listing its common shares on the Toronto Stock Exchange in October . During the year , Topaz invested $ 171.5 million of capital on additional high free cash flow margin assets which contributed annualized 2020 EBITDA ( 2 ) of $ 19.5 million . To date , Topaz has assembled a material royalty position in the Cretaceous Clearwater play in Alberta with royalty interests on over 190,000 gross acres of developed and undeveloped land which are supported by cumulative capital development commitments of $ 143.0 million . The Company has also significantly expanded its royalty interests in the WCSB's largest natural gas complex , the Alberta Deep Basin ( " Deep Basin " ) . On January 1 , 2021 , Topaz acquired royalty interests on 720,000 gross acres of land which Topaz estimates will provide free cash flow ( 2 ) growth on a per share basis , of 8 % ( 5 ) and 12 % ( 5 ) in 2021 and 2022 , respectively . In 2020 , Topaz generated total EBITDA ( 2 ) of $ 89.3 million and paid $ 73.1 million in dividends . Topaz is a unique , premium energy investment vehicle which is underpinned by its strategic partners ' continued focus and commitment to developing Topaz's royalty acreage which enables Topaz to provide a reliable and predictable outcome . Topaz is well funded for growth with cash on hand and a recently expanded , undrawn $ 300.0 million credit facility . Topaz commenced its current operations on November 14 , 2019. Highlights of Topaz's financial results for the three months ended December 31 , 2020 ( " Q4 2020 ” ) , for the year ended December 31 , 2020 ( " 2020 " ) ; as well as significant transactions completed subsequent to December 31 , 2020 ( " Subsequent Period ” ) and updated guidance estimates for 2021 ( " 2021 " ) are presented below : Financial performance • • Generated total revenue and other income ( 1 ) of $ 30.7 million and $ 99.9 million in Q4 2020 and 2020 , respectively . Generated EBITDA ( 2 ) of $ 27.1 million and $ 89.3 million , realizing an EBITDA margin ( 2 ) of 88 % and 89 % in Q4 2020 and 2020 , respectively . Royalty activity update • Topaz's average royalty production ( 6 ) for Q4 2020 and 2020 was 10,335 boe / d and 10,144 boe / d , which generated royalty production revenue of $ 17.6 million and $ 58.9 million , respectively . • During Q4 2020 , 42 gross wells were spud on Topaz's royalty acreage ( 36 gross wells on acreage operated by Tourmaline Oil Corp. ( " Tourmaline " ) and 6 gross wells on Topaz's greater Clearwater acreage ) ; 7 of which were brought on production ( 3 ) by December 31 , 2020. In 2020 , 173 gross wells were spud on Topaz's royalty acreage ( 167 gross wells on acreage operated by Tourmaline and 6 gross wells on Topaz's greater Clearwater acreage ) ; 112 of which were brought on production ( 3 ) by December 31 , 2020. Topaz expects the additional wells drilled but not completed by December 31 , 2020 will be brought on production during 2021. Through February 2021 there were 14 drilling rigs active on Topaz's royalty acreage ; activity is expected to reduce to accommodate spring breakup . Infrastructure activity update • During Q4 2020 and 2020 , Topaz generated $ 10.3 million and $ 30.8 million , respectively of processing revenue attributed to its non - operated ownership in processing facilities . During Q4 2020 and 2020 , average daily utilization of Topaz's net natural gas processing capacity was 100 % as Topaz's net processing capacity ( 71 % of which is contracted under fixed take - or - pay ) was fully utilized .