Sayer Energy Advisors has been engaged to assist Questfire Energy Corp. (“Questfire” or the “Company”) with the sale or farm-out of certain assets located throughout Alberta (the “Properties”).
The Properties are located in the Medicine Hat, Carstairs, Garrington, Oberlin (Delburne), Gadsby, Willesden Green, Chigwell, Ferrybank, Westerose, Brazeau River, Lloydminster, Mannville, Cache, Fir, Niton-Leaman, Kakwa and Girouxville areas of Alberta.
Questfire has a number of joint venture drilling upside opportunities located in the Morningside, Open Lake, Westerose, Viking-Kinsella, Mannville, Fir and Berland River areas of Alberta. Questfire is seeking joint venture partners to develop the upside potential in these areas.
Production from the Properties net to the Company has recently averaged 1,885 boe/d, consisting of approximately 8.9 MMcf/d of natural gas and 408 barrels of oil and natural gas liquids per day.
GLJ Petroleum Consultants Ltd. (“GLJ”) prepared an independent reserves evaluation of Questfire’s properties as part of the Company’s year-end reporting (the “GLJ Report”). The GLJ Report is effective December 31, 2015 using an average of the price forecasts of GLJ, McDaniel & Associates Consultants Ltd. and Sproule Associates Limited effective January 1, 2016. Note that for certain Properties where Questfire is not divesting the entire property as described in the GLJ Report, Questfire has updated the reserves information to reflect the assets as they are described in the attached brochure. Questfire estimates that, as of December 31, 2015 the Properties contained remaining proved plus probable reserves of 2.9 million barrels of oil and natural gas liquids and 48.6 Bcf of natural gas (11.0 million boe), with an estimated net present value of $53.1 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). The confidential information relating to the joint venture opportunities will be available under a separate Confidentiality Agreement (copy attached) from the divestiture Properties.
Sayer is accepting proposals relating to this offering until 12:00 pm on Tuesday, November 29, 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