Sayer Energy Advisors has been engaged to assist Ernst & Young Inc., in its capacity as receiver of LGX Oil + Gas Inc. (“LGX” or the “Company”) in divesting certain of the oil and natural gas properties held by LGX.
LGX’s properties that are currently for sale consist of operated, high working interests in properties which produce oil and natural gas from the Big Valley/Banff formations (“Alberta Bakken”) and the Bow Island Formation in the Blood area of southern Alberta (Blood Reserve (“Alberta Bakken” & Bow Island), Blood – Magrath and Blood – McIntyre Ranch).
In addition to the main producing properties, the Company holds working interests in minor producing properties in the Aden/Black Butte, Enchant/Vauxhall, Retlaw, Badger, Long Coulee and Armada areas of southern Alberta, at Ukalta in central Alberta and at Balsam on the Peace River Arch (the “Properties”).
Recent production (September 2016 field data) net to LGX from the Properties has averaged approximately 225 boe/d, consisting of 42 barrels of oil and natural gas liquids per day and 1.1 MMcf/d of natural gas.
The Company also holds minor working interests in non-producing properties in the Pakowki Lake, Pincher Creek, Majorville and Chinook areas of southern Alberta, at Wildwood in central Alberta, at Mirage and Oak on the Peace River Arch and at Salvador, Saskatchewan.
GLJ Petroleum Consultants Ltd. prepared an independent reserves evaluation of LGX’s properties as part of the Company’s year-end reporting. The GLJ Report is effective December 31, 2015 using GLJ’s January 1, 2016 forecast pricing.
GLJ estimates that, as of December 31, 2015, the Properties contained remaining proved plus probable reserves of 1.27 million barrels of oil and natural gas liquids and 4.5 Bcf of natural gas (2.0 million boe), with an estimated net present value of $11.7 million using forecast pricing at a 10% discount.
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 divestiture will be accepted until 12:00 pm on Thursday, December 15, 2016.
For further information please feel free to contact: Tom Pavic, Ben Rye, Jill Switzer, Ryan Ferguson Young or myself at 403.266.6133.
Alan W. Tambosso, P.Eng. P.Geol.
SAYER ENERGY ADVISORS
1620, 540 – 5th Avenue SW
Calgary, Alberta T2P 0M2
P: 403.266.6133 C: 403.650.8061 F: 403.266.4467