Effective March 18, 2016 GAMET Resources Ltd. (“GAMET” or the “Company”) filed a Notice of Intention to Make a Proposal pursuant to subsection 50.4 (1) to the Bankruptcy and Insolvency Act (the “Proposal”). Ernst & Young Inc. has consented to act as the Trustee in respect of GAMET’s Proposal. As part of the Proposal, Sayer Energy Advisors has been engaged to assist GAMET with the sale of its working interest oil and natural gas properties (the “Properties”).
The Company’s main properties consist of operated, high working interests in oil and natural gas properties in the Garrington/Innisfail, Sylvan Lake/Medicine River, Ferrier, Willesden Green, Crystal, Pembina, Brazeau and Highvale areas of central Alberta.
Recent production (Q4 2015 sales) net to GAMET from the Properties has averaged approximately 342 boe/d, consisting of 1.46 MMcf/d of natural gas sales and 99 barrels of oil and natural gas liquids per day. Operating income in the fourth quarter of 2015 was approximately $134,000.
The Company also holds various working interests in non-producing properties in the Armitage, Cherhill, Lac La Biche, Lone Pine Creek, McMillan, Nelson, Pollockville, Waskahigan and Wilson Creek areas of Alberta.
Trimble Engineering Associates Ltd. (“Trimble”) estimates that, as of September 30, 2015, GAMET’s properties contained remaining proved plus probable reserves of 25.7 Bcf of natural gas and 2.4 million barrels of oil and natural gas liquids (6.7 million boe), with an estimated net present value of $60 million using Trimble’s October 1, 2015 forecast pricing at a 10% discount.
As of April 2, 2016, GAMET’s Properties collectively have a deemed net asset value of $2.7 million, with an LMR ratio of 1.39.
The Company’s current net debt is approximately $5.2 million. As of September 30, 2015, GAMET had income tax pools and non-capital losses totaling approximately $12.6 million.
Summary information relating to this divestiture is attached to this correspondence. More specific information is available at this website. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
The deadline for submitting proposals is noon on Thursday, May 26, 2016. Offers will be accepted on individual properties but not portions thereof.
For further information please feel free to contact Tom Pavic, Ben Rye, Ryan Ferguson Young, Jill Switzer 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