Sayer Energy Advisors has been engaged to assist Rolling Hills Energy Ltd. (“Rolling Hills” or the “Company”) with the sale of its oil and natural gas property located in the Queenstown area of Alberta (the “Property”).
At Queenstown, Rolling Hills holds an interest in a total of 47.5 sections of land. The Company holds a 100% working interest in seven wells and a royalty interest in an additional three wells. Rolling Hills operates two natural gas wells and three oil wells, all producing from the Mannville Group.
Current production from the Property net to Rolling Hills is approximately 100 boe/d, consisting of 348 Mcf/d of natural gas, 26 barrels of oil per day and 16 barrels of natural gas liquids per day.
As of September 3, 2016, Rolling Hills’ Queenstown property had a deemed net asset value of $5,527,269 (deemed assets of $6,457,829 and deemed liabilities of $930,560), with an LLR rating of 6.94.
Sproule Associates Limited prepared an independent reserves evaluation of Rolling Hills’ properties as part of the Company’s year-end reporting. The Sproule Report is effective December 31, 2015 using Sproule’s December 31, 2015 forecast pricing. Sproule estimates that, as of December 31, 2015, the Queenstownproperty contained remaining proved plus probable reserves of 315,000 barrels of oil and natural gas liquids and 2.3 Bcf of natural gas (698,000 boe), with an estimated net present value of $7.0 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, October 27, 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