Sayer Energy Advisors has been engaged to assist Yoho Resources Inc. (“Yoho” or the “Company”) with the sale of its non-core oil and natural gas properties (the “Properties”). The Properties are located in various areas of Saskatchewan, Alberta and British Columbia.
Recent production net to Yoho from the Properties has averaged approximately 585 barrels of oil equivalent per day, with sales of 126 barrels of oil and natural gas liquids per day and 2.75 MMcf/d of natural gas.
In Saskatchewan, Yoho has only non-operated interests in two producing properties. The Company would prefer to divest all of its Saskatchewan properties in one transaction. Yoho holds a 35% working interest in a Sparky oil well in the Marsden North area and a 37.5% working interest in one GP oil well in the Pikes Peak area. The Company’s recent net sales from its Saskatchewan properties have been 27 barrels of oil per day.
Yoho holds various operated and non-operated working interests in 11 properties in Alberta. Recent sales net to Yoho from the Alberta properties have averaged approximately 394 barrels of oil equivalent per day, with sales of 98 barrels of oil and natural gas liquids per day and 1.8 MMcf/d of natural gas. Yoho’s Alberta properties are located in the Suffield, Windfall, Kaybob, Manir, Sinclair, Spirit River, Boundary Lake, Worsley, Clear Hills, Sweeney and Basset Lake areas.
In British Columbia, Yoho has operated and non-operated interests in seven properties. Recent sales net to Yoho from the British Columbia properties have averaged approximately 164 barrels of oil equivalent per day, with sales of one barrels of oil and natural gas liquids per day and 975 Mcf/d of natural gas. Yoho’s British Columbia properties are located in the Paradise, Stoddart, Mike, Wargen, Prophet River, Ekwan and Clarke Lake areas.
GLJ Petroleum Consultants Ltd. (“GLJ”) prepared an independent reserves evaluation of Yoho’s properties as part of the Company’s year-end reporting (the “GLJ Report”). The GLJ Report is effective December 31, 2016 using GLJ’s 2017-01 forecast pricing.
GLJ estimates that, as of December 31, 2016, the Properties contained remaining proved plus probable reserves of 13.7 Bcf of natural gas and 655,000 barrels of oil and natural gas liquids (2.9 million boe), with an estimated net present value of $13.9 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, June 1, 2017.
For further information please feel free to contact Ben Rye, Jill Switzer, Tom Pavic, 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