Sinopec Canada (“Sinopec” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of several of its non-core properties in various areas of western Canada (the “Properties”). The Properties are producing approximately 664 boe/d (2.72 MMcf/d of natural gas and 210 barrels of oil and natural gas liquids per day) net to Sinopec.
In the Retlaw area, Sinopec is currently producing approximately 58 boe/d, with most of its production coming from its non-operated 64.9% working interest in the Retlaw Mannville G Pool and the Retlaw Mannville G2G Pool.
Recent production net to the Company from its 28 producing wells at Caroline has averaged approximately 311 boe/d.
At Chigwell, Sinopec produces approximately 56 boe/d.
Recent production net to the Company from its wells at Buck Lake has averaged approximately 94 boe/d.
At St. Albert, Sinopec is bringing several of its shut-in natural gas wells back on production, adding 200-300 boe/d net to the Company.
Recent natural gas production net to Sinopec from the Calling Lake property has averaged approximately 811 Mcf/d (135 boe/d).
Sinopec holds working interests in minor producing properties in the Minnehik, Ferrybank, Chipman, Redwater, and Meanookareas and it also holds various royalty interests at Retlaw, Chigwell, Minnehik, Buck Lake, Chipman and St. Albert. The Company also holds varying working interests in non-producing properties in the Forgan, Saskatchewan area and in the Killam, Brewster, Bittern Lake, Westlock and Baptiste areas of Alberta.
McDaniel & Associates Consultants Ltd. prepared an independent reserves evaluation of Sinopec’s properties as part of the Company’s year-end reporting. The McDaniel Report is effective December 31, 2016 using McDaniel’s January 1, 2017 forecast pricing.
McDaniel estimates that, as of December 31, 2016, the Properties contained remaining proved plus probable reserves of 270,000 barrels of oil and natural gas liquids and 8.1 Bcf of natural gas (1.6 million boe), with an estimated net present value of $4.5 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, May 11, 2017.
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