Keyera Partnership (“Keyera” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of its crude oil pipeline interests in the Red Earth Creek area of Alberta (the “Pipelines”). The Company is selling the Pipelines in order to focus its activities on its core business.
The Pipelines are located approximately 370 km north of Edmonton, in the Red Earth Creek area of north central Alberta.
Keyera holds a 64.441% working interest in and operates the Wabasca River Pipeline System (“Wabasca”), and the Company holds an 87.5% working interest in and operates the North Senex Pipeline System (“North Senex”).
Recent change in ownership and operation of production could provide throughput upside, including increased drilling and licensing activity around the Pipelines seen in early 2017.
The Pipelines currently provide transportation services to approximately 20,000 m3 per month (~4,200 barrels per day) of light-sweet crude oil from various receipt points for delivery into Plains Midstream Canada’s Rainbow pipeline system. Oil production is primarily from the Slave Point and Keg River formations.
Wabasca has a capacity of approximately 97,000 m3 per month (~20,000 barrels per day) on a gross basis, while North Senex has a capacity of approximately 27,000 m3 per month (~5,660 barrels per day) on a gross basis.
Operators currently delivering crude oil into the Pipelines include Canadian Natural Resources Limited, Gryphon Petroleum Corp., Journey Energy Inc., Mancal Energy Inc., Mount Bastion Oil & Gas Corp., Predator Oil Ltd. and Summerland Energy Inc.
The Pipelines are expected to generate net operating income of approximately $1.3 million for Keyera in 2017.
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, June 1, 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