Sayer Energy Advisors has been engaged to assist Front Range Resources Ltd. (“Front Range” or the “Company”) with the sale of certain properties located in theBigstone and Wilson Creek areas of Alberta (the “Properties”).
Recent production net to Front Range from the Properties has averaged 49 boe/d, consisting of 149 Mcf/d of natural gas and 24 barrels of oil and natural gas liquids per day.
At Bigstone, Front Range holds an operated working interest in eight gross, three and a half net contiguous sections of P&NG rights in the Montney Formation; a 50% working interest in six gross sections of land and a 25% working interest in two gross sections of land (2,240 net acres) on which the Company operates three liquids-rich horizontal Montney natural gas wells and associated infrastructure. Current production net to Front Range from the Bigstone property is estimated to be 29 boe/d, consisting of 117 Mcf/d of natural gas and nine barrels of natural gas liquids per day.
At Wilson Creek, Front Range holds an average 50% non-operated working interest in three sections of land and an additional average working interest of 39% (BPO) in two producing Belly River oil wells which were drilled in the fourth quarter of 2015. Recent production net to Front Range from the Wilson Creek property is estimated to be approximately 15 barrels of oil and natural gas liquids per day and 32 Mcf/d of natural gas, or 20 boe/d. A natural gas well which was drilled and completed on the Company’s land in a new Belly River channel pool in the fourth quarter of 2015 tested natural gas at an average rate of 1.1 MMcf per day.
GLJ Petroleum Consultants Ltd. estimates that the Properties contain remaining proved plus probable reserves of approximately 1.1 MMbbl of oil and natural gas liquids and 14.6 Bcf of natural gas (3.5 million boe) as of December 31, 2015, with an estimated net present value of approximately $11.6 million at a 10% discount. Note: The Wilson Creek reserves do not include the well at 102/13-17-042-03W5/0, which tested natural gas at an average rate of 1.1 MMcf/d.
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.
The deadline for submitting offers is noon on Thursday, October 13, 2016. Front Range will consider offers which involve cash, shares in a publicly traded entity and/or swap proposals.
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