Our land holdings total just three million gross acres extending from northeastern British Columbia to southern Ontario, 94% of which are royalty lands. We have royalty interests in more than 30,000 wells (28,000 royalty wells) and receive income from over 200 industry operators. This diversity lowers our risk, while we benefit from industry drilling activity.
As a royalty interest owner, we do not pay any of the capital costs to drill and equip the wells for production, nor do we incur costs to operate the wells, maintain production, and ultimately restore the land to its original state. The operators pay all of those costs and we simply receive a percentage of the production.
Our royalty interests accounted for 74% of our 2012 operating income.
Freehold also owns primarily small working interests in over 100 non-operated oil and gas properties.
As at December 31, 2012