Sayer Energy Advisors has been engaged to assist Rife Resources Ltd. (“Rife” or the “Company”) with the sale of its oil and natural gas properties located in the Wilson Creek and Buck Lake areas of Alberta (the “Properties”).
Recent production (October/November 2016) net to Rife from the Properties has averaged 102 boe/d, consisting of 57 barrels of oil and natural gas liquids per day and 270 Mcf/d of natural gas sales. Current annualized operating cash flow from the Properties is approximately $565,000.
At Wilson Creek, Rife holds various non-operated working interests in three sections of land on which it has five wells producing 62 boe/d net to the Company, consisting of 186 Mcf/d of natural gas and 31 barrels of natural gas liquids per day.
In the Buck Lake area of Alberta, Rife holds various working interests in five sections of land on which there are six wells producing 40 boe/d net to the Company, consisting of 26 barrels of oil and natural gas liquids per day and 84 Mcf/d of natural gas. Included with the working interest assets is firm service on the TCPL system: 3.0 e3m3/d at the Minnehik Buck Lake Meter Station (#2149). The Buck Lake property has an LMR of 7.71, with a net deemed asset value of $562,126 as of March 4, 2017.
Trimble Engineering Associates Ltd. estimates that, as of December 31, 2016, the Properties contained remaining proved plus probable reserves of 464,000 barrels of oil and natural gas liquids and 2.2 Bcf of natural gas (829,000 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, April 27, 2017.
For further information please feel free to contact Ben Rye, Jill Switzer, Tom Pavic 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