Sayer Energy Advisors has been engaged to assist Rising Star Resources Ltd. (“Rising Star” or the “Company”) with the sale of its non-core oil and natural gas properties (the “Properties”). The Properties are located in Whitelaw, North Sturgeon, Eaglesham and Fairview areas of northwestern Alberta.
At Whitelaw, Rising Star holds a 100% working interest in ten sections of land on which there are seven natural gas wells which produce with a shallow decline. Recent net production from the Whitelaw property has averaged approximately 535 Mcf/d of natural gas sales with minor volumes of natural gas liquids (90 boe/d). As of May 6, 2017, Rising Star’s Whitelaw property had a deemed net asset value of $619,722 (deemed assets of $2,357,498 and deemed liabilities of $1,737,776), with an LLR of 1.36.
Rising Star holds a 100% working interest in 38 sections of land at North Sturgeon located within a fairway with proven multi-zone development potential. Rising Star holds a 100% working interest in 2.25 sections of land at Eaglesham and a 100% working interest in three sections of land and a royalty on two additional sections of land at Fairview. There is no production currently associated with the Eaglesham, Fairview or North Sturgeon properties.
Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of Rising Star’s Whitelaw and North Sturgeon properties as part of the Company’s year-end reporting effective December 31, 2016 using Sproule’s December 31, 2016 forecast pricing.
Sproule estimates that as of December 31, 2016, the Whitelaw and North Sturgeon properties contained remaining proved plus probable reserves of 2.2 Bcf of natural gas (370,000 boe), with an estimated net present value of $1.5 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, July 6, 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