Sayer Energy Advisors has been engaged to assist Vista Resources Harmattan Inc. (“Vista” or the “Company”) with the sale of its 24.2345% working interest in the Harmattan East Viking Unit No. 1 (the “Unit”), as well as its working interests of between 25% and 90% in three non-Unit oil wells and one non-Unit natural gas well (“Harmattan East” or the “Property”).
The Unit, which was formed in 1986, is operated by Production Plus Energy Services Inc. (formerly TriAxon Oil Operations Ltd.). Many of the wells in the Unit have been producing oil and natural gas primarily from the conglomeratic Upper Viking Formation since 1980. The non-Unit wells which the Company holds working interests in have also been producing from the Upper Viking for several decades. There is significant upside to develop the oil-bearing Lower Viking reservoir which underlies the main producing zone.
Recent total production from the 30 producing Unit and non-Unit wells on the Property has averaged approximately 282 barrels of light oil per day, 35 barrels of natural gas liquids per day and 375 Mcf/d of natural gas. Cumulative production from the Unit wells to date exceeds 12.7 million barrels of oil and 6.7 Bcf of natural gas.
Vista’s total net production from the Unit and non-Unit wells on the Property has recently averaged approximately 100 boe/d (77 barrels of oil, 8 barrels of natural gas liquids per day and 90 Mcf/d of solution natural gas). Total operating income from the Property net to Vista in the fourth quarter of 2015 was approximately $170,000.
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 16, 2016.
For further information please feel free to contact: Jill Switzer, Tom Pavic, Ryan Ferguson Young, Ben Rye 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