Sayer Energy Advisors has been engaged to assist Standard Exploration Ltd. (“Standard” or the “Company”) with the divestiture of its non-core oil properties located in the Chin Coulee and Claresholm areas of southern Alberta (the “Properties”).
At Chin Coulee, Standard holds a 100% working interest in one section of land on which there are three heavy oil wells producing approximately 51 barrels of oil per day from the Sawtooth Formation. Monthly operating income from Chin Coulee has recently averaged approximately $42,000 ($500,000 annualized).
As of December 2, 2016, the Chin Coulee property had a deemed net asset value of $1.8 million (deemed assets of $2.3 million and deemed liabilities of $0.47 million), with an LLR ratio of 4.90.
GLJ Petroleum Consultants Ltd. estimates that, as of December 31, 2015, the Chin Coulee property contained remaining proved plus probable reserves of 155,000 barrels of heavy oil with an estimated net present value of $3.1 million using forecast pricing at a 10% discount.
At Claresholm, Standard holds a 100% working interest in 4.25 sections of land on which there are two oil wells producing approximately 10 barrels of oil per day from the Barons Sand Formation. Monthly operating income from the property has recently averaged approximately $8,000 ($100,000 annualized).
As of December 2, 2016, the Claresholm property had a deemed net asset value of $277,372 (deemed assets of $455,008 and deemed liabilities of $177,636), with an LLR ratio of 2.56.
GLJ Petroleum Consultants Ltd. estimates that, as of December 31, 2015, the Claresholm property contained remaining proved plus probable reserves of 47,000 barrels of oil, with an estimated net present value of $525,000 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, February 9, 2017.
Click here to see all available details for the Standard Exploration Non-Core Property Divestiture
For further information please feel free to contact: Tom Pavic, Ben Rye, Jill Switzer, Ryan Ferguson Young 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