While the immediate impact didn't seen to sway many area investors, Canadian oil producers expect a worse effect.

Both Highpine Oil and Gas Ltd. and Galleon Energy Inc. said their cash flows will be hit significantly.

Highpine said if the royalty hike was enforced immediately, its cash flow would be cut by about 29 percent. Galleon said it would lose between 9 percent and 9.5 percent.

"This has affected the best junior exploration companies," said Glenn MacNeill, vice president of investments for Toronto-based Sentry Select Capital Corp. "I had very high hopes for those companies and still do, but they're the most punitively damaged by this."

Since Thursday Highpine's share price has fallen nearly 20 percent to $8.58 and Galleon's has dropped 15 percent.

"The royalty changes produce a number of anomalous and discriminatory results for companies engaged in high-risk oil exploration," a Highpine representative said.

Galleon, however, expected it could still prosper and grow next year.

"The reality is that even with this impact, we are still growing and will continue to prosper," said Steve Sugianto, chief executive officer.