Sayer Energy Advisors has been engaged to assist NuVista Energy Ltd. (“NuVista” or the “Company”) with the sale of its non-core oil and natural gas assets located in the Brazeau, Pembina, Wolf Lake, Hinton(collectively the “W5 Properties”) and Waskahigan areas of Alberta (the “Properties”). The Company is selling the Properties in order to direct capital to its core properties.
Recent production (February 2016) net to NuVista from the Properties has averaged 502 boe/d, consisting of 51 barrels of oil and natural gas liquids per day and
2.71 MMcf/d of natural gas sales.
As of March 2016, the Properties collectively have a positive deemed net asset value of $9.02 million, with an LMR ratio of 2.40.
Net operating income from the W5 Properties for year ended December 31, 2015 totaled approximately $600,000. Net operating income for the year ended December 31, 2015 totaled approximately $800,000 from the Waskahigan property.
GLJ Petroleum Consultants Ltd. estimates that the Properties contained remaining proved plus probable reserves of approximately 761,000 barrels of oil and natural gas liquids and 20.2 Bcf of natural gas (4.1 million boe) as of December 31, 2015, with an estimated net present value of approximately $21.3 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 16, 2016.
For further information please feel free to contact: Ben Rye, Tom Pavic, 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