Our land holdings total greater than three million gross acres extending from northeastern British Columbia to southern Ontario, 93% of which are royalty lands. We have royalty interests in more than 31,000 wells (29,000 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 78% of our 2014 operating income.
Freehold also owns primarily small working interests in over 100 non-operated oil and gas properties.