Sayer Energy Advisors has been engaged by Grant Thornton Limited, the receiver and manager of specific property of Edge Resources Inc. (“Edge” or the “Company”) to market the oil and natural gas interests of Edge in the Eyehill area of Saskatchewan (the “Property”).
Edge holds a 100% working interest in a total of 17 sections of land in the Eyehill area of Saskatchewan.
Recent production from the Property has averaged approximately 121 boe/d, consisting of 58 barrels of 12o API oil per day and 375 Mcf/d of natural gas sales. Production is from the Mannville, McLaren and Waseca formations.
As of May 13, 2016, the LMR of the Property was 3.55 with a net deemed asset value of approximately $5.0 million.
A number of operational improvements could significantly improve production from the Eyehill property. Also, additional production can be gained by turning previously shut-in wells back on once additional water disposal capacity is secured.
Deloitte LLP prepared an independent reserves evaluation of the Eyehill property as part of the Company’s year-end reporting. The Deloitte Report is effective March 31, 2015 using Deloitte’s March 31, 2015 forecast pricing. Deloitte estimates that, as of March 31, 2015, the Eyehill property contained remaining proved plus probable reserves of 2.9 million barrels of oil and 5.5 Bcf of natural gas (3.8 million boe), with an estimated net present value of $74.9 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 30, 2016.
For further information please feel free to contact: Ryan Ferguson Young, Tom Pavic, Ben Rye, 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