MNP Ltd. was appointed as receiver and manager (the “Receiver”) of all of the assets, properties and undertakings of COGI Limited Partnership, Canadian Oil & Gas International Inc. Conserve Oil Group Inc. and Conserve Oil 1st Corporation (collectively “COGI” or the “Company”) pursuant to orders of the Court of Queen’s Bench of Alberta.
Sayer Energy Advisors has been engaged to assist the Receiver in divesting all of the oil and natural gas properties held by COGI (the “Properties”). While the divestiture includes all of the Properties of COGI, and while the Receiver’s preference is to sell as many properties as possible in each transaction, the Properties will be offered individually. Interested parties are free to make offers to acquire any Property, in whole or in part.
The Properties include properties operated by COGI, third-party operated properties in which COGI holds a working interest, and properties in which COGI holds a royalty interest.
COGI’s net total average production from May to July 2016, averaged approximately 1,329 boe/d (5.8 MMcf/d of natural gas and 363 barrels of oil and natural gas liquids per day). COGI’s operated properties produce a total of 1,106 boe/d (4.74 MMcf/d of natural gas and 316 bbl/d) net to the Company. Non-operated properties contribute a total of 195 boe/d (927 Mcf/d of natural gas and 40 bbl/d). Total recent royalty production received by the Company has averaged approximately 28 boe/d, with royalty revenue of approximately $150,000 received in the past twelve months.
Operated Properties
COGI’s operated properties produced an average total of 1,106 boe/d (4.74 MMcf/d of natural gas and 316 bbl/d) net to the Company from May to July 2016.
In south central Alberta, COGI operates producing oil and natural gas properties in the Stanmore (natural gas), Watts (natural gas), Three Hills (oil and natural gas), Penhold (oil and natural gas), Leo (oil), Halkirk (oil), Joffre (oil), Leahurst/Joffre (natural gas) and Red Willow (oil) areas.
In east central Alberta, the Company operates a producing natural gas property at Cold Lake.
West of the fifth meridian, COGI operates minor producing natural gas properties in the Ferrier, Brazeau and Leland areas. On the Peace River Arch, the Company operates a minor producing natural gas property at Pouce Coupe and a minor producing oil property at Boundary Lake.
COGI also holds varying working interests in operated, non-producing properties in the Ear Lake and Wilkie areas of Saskatchewan, in the Medicine Hat, Keho (wellbores only), Parkland, Sunnynook, Provost, Nevis, Hillsdown, Rosalind/Bruce, Bittern Lake, Plain and Ells areas west of the fourth meridian, in the Parker and Kidney areas west of the fifth meridian, and in the Shane and Clear Prairie areas on the Peace River Arch.
Niven Fischer Energy Services Inc. (“Niven Fischer”) estimates that, as of July 1, 2016, the producing wells that COGI operates contain remaining proved developed producing reserves of 929,000 barrels of oil and natural gas liquids and 10.4 Bcf of natural gas (2.7 million boe), with an estimated net present value of $18.8 million using forecast pricing at a 10% discount.
Non-Operated Properties
COGI’s non-operated properties contributed an average total of 195 boe/d (927 Mcf/d of natural gas and 40 bbl/d) from May to July 2016.
The Company has varying working interests in a number of non-operated producing properties west of the fourth meridian in Alberta, including Carsland (natural gas), Cessford (natural gas), Ghost Pine (natural gas), Delia (natural gas), Twining (natural gas), Rowley (natural gas), Huxley (natural gas), Gadsby (natural gas), Oberlin (natural gas), Gull Lake (natural gas), Forestburg (oil), Bashaw (natural gas) and Wandering River (natural gas).
West of the fifth meridian, COGI holds non-operated working interests in producing properties in the Gilby (oil), Niton (natural gas), Wild River (natural gas), Marten Creek (natural gas) and Nipisi (natural gas) areas.
On the Peace River Arch, the Company holds non-operated working interests in producing properties in the Wembley (natural gas) and Grande Prairie (oil) areas.
The Company also holds non-operated working interests in non-producing properties in the Manyberries, Wrentham, Retlaw and Long Coulee areas of southern Alberta.
Niven Fischer estimates that, as of July 1, 2016, the producing wells that COGI has a non-operated working interest in contain remaining proved developed producing reserves of 122,000 barrels of oil and natural gas liquids and 2.9 Bcf of natural gas (604,000 boe), with an estimated net present value of $4.0 million using forecast pricing at a 10% discount.
Royalty Properties
Total recent royalty production received by the Company has averaged approximately 28 boe/d, with royalty revenue of approximately $150,000 received in the past twelve months.
COGI holds royalty interests in a number of producing and non-producing wells in the Little Bow, Carsland, Cessford, Twining, Gadsby, Hillsdown, Penhold, Halkirk, Joffre, Leahurst, Bashaw, Edberg, Cold Lake and Wandering River areas west of the fourth meridian, and in the Marten Creek area west of the fifth meridian.
Niven Fischer estimates that, as of July 1, 2016, the producing wells that COGI has a royalty interest in contain remaining proved developed producing reserves of 16,000 barrels of oil and natural gas liquids and 432 MMcf of natural gas (88,000 boe), with an estimated net present value of $1.15 million using forecast pricing at a 10% discount.
The strong preference is to sell all of the royalty properties in one transaction.
Summary information relating to this divestiture is attached to this correspondence. More specific information is available at www.sayeradvisors.com. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
Cash offers relating to this receivership sale will be accepted until 12:00 pm on Thursday, November 17, 2016.
For further information please feel free to contact: Tom Pavic, Ben Rye, Jill Switzer, Ryan Ferguson Young or myself at 403.266.6133.
Click here to see all available details on COGI’s Receivership Sale
Alan Tambosso
Alan W. Tambosso, P.Eng. P.Geol.
President
SAYER ENERGY ADVISORS
1620, 540 – 5th Avenue SW
Calgary, Alberta T2P 0M2
P: 403.266.6133 C: 403.650.8061 F: 403.266.4467
www.sayeradvisors.com