Clearview Resources Ltd. (“Clearview” or the “Company”) has engaged Sayer Energy Advisors to assist it with the marketing of its non-operated oil and natural gas properties in various areas of Alberta (the “Properties”).
Recent production net to Clearview from the Properties has averaged approximately 334 boe/d (193 barrels of oil and natural gas liquids per day and 847 Mcf/d of natural gas).
In southern Alberta, the Company’s most significant properties are its non-operated working interests at Carmangay/Travers, where it produces approximately 58 barrels of oil per day from the Barons Sandstone, and at Bantry, where it produces 102 boe/d (82 barrels of oil per day and 120 Mcf/d of natural gas).
At Carmangay/Travers, Clearview holds working interests ranging from 17%-30% in 52 long-life oil wells in the Carmangay Barons “A” Oil Pool. The Company’s net operating income from the property has recently averaged approximately $50,000 per month.
Clearview believes there is potential to increase its production at Bantry through the installation of high volume lift and associated increases to the water handling capability.
Clearview also holds minor, non-operated working interests and royalty interests in properties in the Manyberries, Granlea and Majorville areas, as well as royalty interests in properties in the Aden/Lait, Wrentham, Medicine Hat, Brant, Claresholm and Cessford areas.
North of Calgary, Clearview holds various non-operated, minor working interests in several oil and natural gas units (Calgary Elkton Unit 1, Crossfield Cardium Unit 2, Crossfield Turner Valley Unit 1, East Crossfield Unit (D-1 Zone), Carstairs Elkton Unit 1 and Caroline Swan Hills Gas Unit 1). In the Pembina area of central Alberta, Clearview holds a 3.827214% working interest in the Warburg Belly River “M” Unit.
GLJ Petroleum Consultants Ltd. prepared an independent reserves evaluation of Clearview’s properties as part of the Company’s corporate evaluation. The GLJ Report is effective March 31, 2016 using GLJ’s 2016-04 forecast pricing.
GLJ estimates that, as of March 31, 2016, the Properties contained remaining proved plus probable reserves of approximately 1.08 million barrels of oil and natural gas liquids and 3.0 Bcf of natural gas (1.6 million boe), with an estimated net present value of $14.1 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).
Cash offers relating to this divestiture will be accepted until 12:00 pm on Thursday, May 4, 2017.
For further information please feel free to contact: Tom Pavic, Ben Rye, Jill Switzer, Ryan Ferguson Young 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