Wilcox Energy Corp. (“Wilcox” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of its non-operated Cardium oil property in the Wilson Creek area of Alberta (the “Property”). The Company is selling the Property in order to focus its activities on its operated properties in other areas of Alberta.
Wilcox holds a 33% working interest in the Property, on which there are currently three low decline Cardium oil wells which produce a total of approximately 48 barrels of oil per day and 78 Mcf/d of natural gas, with 19 boe/d of recent sales net to the Company (16 barrels of oil and natural gas liquids per day and 18 Mcf/d of natural gas).
The Company’s recent net operating income from the Property has averaged approximately $20,000 per month, or $240,000 on an annualized basis.
Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of Wilcox’s properties as part of the Company’s year-end reporting (the “Sproule Report”). The Sproule Report is effective February 28, 2017 using Sproule’s February 28, 2017 forecast pricing. Sproule estimates that, as of February 28, 2017, the Wilson Creek property contained remaining proved plus probable reserves of 195,000 barrels of oil and natural gas liquids and 233 MMcf of natural gas (233,500 boe), with an estimated net present value of $2.9 million using forecast pricing at a 10% discount.
Wilcox has identified potential to drill up to seven locations on the Property. Three of the seven locations have been assigned proved undeveloped reserves by Sproule, two have been assigned probable reserves.
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 11, 2017.
For further information please feel free to contact Ben Rye, Jill Switzer, Tom Pavic, 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