Sayer Energy Advisors has been engaged to assist Toro Oil & Gas Ltd. (“Toro” or the “Company”) with the sale of its non-core oil and natural gas properties which are located in Alberta and Saskatchewan (collectively the “Properties”).
Toro holds varying operated and non-operated producing properties located in the Pembina, Schuler, Alderson-Medicine Hat, Lone Pine Creek, Three Hills, Redwater, Crossfield, Tony Creek and Dawson areas of Alberta. The Valhalla property has recently been shut-in.
Total production from the producing properties is approximately 152 boe/d, consisting of 77 barrels of oil and natural gas liquids per day and 450 Mcf/d of natural gas.
In addition to upstream oil and natural gas properties, Toro is offering for sale its 100% working interest in a pipeline located in the Dawson area of Alberta (the “Pipeline”). For the first quarter of 2016, the Pipeline generated operating income of approximately $40,000 net to Toro.
Toro also holds an interest in a number of non-producing properties located in the Macoun and Dollard areas of Saskatchewan, in the Retlaw, Little Bow (Enchant), Long Coulee, Ghost Pine, Jeffrey, Hollow (Thorhild), Westlock, Garrington, Minnehik-Buck Lake, Bigoray, Carrot Creek-Niton (Chip Lake), Paddle River, Blueridge, Sakwatamau, Kaybob, Doris, Kitty and Hill areas of Alberta.
Toro’s strong preference is to sell all of the properties in one transaction.
Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of Toro’s properties as part of Toro’s year end evaluation (the “Sproule Report”). The Sproule Report has an effective date of December 31, 2015 using Sproule’s December 31, 2015 forecast pricing.
Total proved plus probable reserves from the Properties as of December 31, 2015 was estimated to be approximately 446,000 barrels of oil and natural gas liquids and 1.3 Bcf of natural gas (659,000 boe), with an estimated net present worth of approximately $7.9 million 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, September 15, 2016.
Click here to see all available details on Toro’s Non-Core Property and Pipeline Divestiture
For further information please feel free to contact: Ben Rye, Ryan Ferguson Young, Tom Pavic, Jill Switzer or myself at 403.266.6133.
Alan Tambosso
Alan W. Tambosso, P.Eng. P.Geol.
President
SAYER ENERGY ADVISORS
1620, 540 – 5th Avenue SW
Calgary, Alberta T2P 0M2
P: 403.266.6133 C: 403.650.8061 F: 403.266.4467
www.sayeradvisors.com