Freehold Royalties Ltd. (TO: FRU.TO) closed an acquisition of royalty interests in parts of Saskatchewan and Manitoba, the company said May 5.

The acquisition will support the company’s operating base as well as its dividend, Freehold added.

The CA$111 million transaction was funded through the company’s credit line, Freehold said. As part of it, Canpar Holdings Ltd., a wholly owned subsidiary of CN Pension Trust Funds, purchased some mineral title lands for $30 million, Freehold added.

The acquisition’s effective date was Jan. 1, the company said. The acquisition produced 470 barrels of oil equivalent per day (boe/d) from more than 400 wells last year, Freehold said. The company added 71,700 mineral title acres, with proved and probable reserves of about 1.5 million boe, Freehold noted. On that acreage, 37 new gross wells were drilled last year, the company added. Freehold will be able to grow royalty volumes through future drilling programs, the company said.

Freehold increased its 2014 production guidance by 6%, to 9,100 boe/d, and noted that it has beween $140 million and $145 million in debt and between $65 million and 70% million in available credit.

Calgary, Alberta-based Freehold Royalties Ltd. owns and acquires oil and natural gas royalties.