Toronto-based Franco-Nevada agreed Monday to pay $220 million for a stake in a newly formed Continental Resources Inc. subsidiary that would acquire minerals in the Oklahoma City-based independent’s holdings in the SCOOP and STACK, aka the South Central Oklahoma Oil Province and the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties.

Under terms of the deal, Continental would receive the proceeds at closing, offsetting the majority of previously incurred capital expenditures.

The new company would acquire mineral rights on acreage operated by Continental in areas that "offer prolific well results, excellent economics, proximity to infrastructure and future upside via stacked hydrocarbon-bearing horizons," the companies said. "The mineral rights represent a perpetual ownership interest in land which provide an entitlement for royalties from oil and gas production."

The companies also committed to spend up to a combined $125 million annually over the next three years to acquire additional minerals through the subsidiary.

Continental would fund 20% of future mineral acquisitions and be entitled to 25-50% of total revenues generated by the subsidiary.

Continental recently said it expects 2018 total production to be at the top end of its full-year production guidance and exit rate.

The independent has 1.13 million acres in the Midcontinent, where 4Q2017 production totaled 111,422 boe/d (59% oil), including 724,000 acres in the SCOOP and 409,500 acres in the STACK.