Sayer Energy Advisors has been engaged to assist NAL Resources Limited (“NAL” or the “Company”) with the sale of certain of its non-core oil and natural gas properties located throughout western Canada (the “Properties”).
Production from the Properties for the month of January 2017 averaged 2,442 boe/d, consisting of 925 barrels of oil and natural gas liquids per day and 9.1 MMcf/d of natural gas sales.
Monthly net operating income from the Properties for the month of January 2017 was $1.35 million.
NAL holds various working interests in 16.75 sections of land in the Pierson/Waskada areas of southwestern Manitoba and one and one half sections of land near the Manitoba/Saskatchewan border in the Antler North/Gainsborough area of Saskatchewan.
In Saskatchewan, NAL’s interests include properties located in the Edenvale, Steelman, Bryant, Huntoon, Weyburn, Hardy, Whitebear, Lost Horse and Chapleau Lake areas of southeastern Saskatchewan (the “Saskatchewan Properties”). Also included in the Saskatchewan Properties package are NAL’s interests in the Weyburn Unit and the Steelman Units 4 and 6 as well as a number of smaller unit interests.
NAL has properties in the Pine Creek and Kakwa areas of Alberta as well as several minor properties in various areas of Alberta. NAL also holds minor interests in northeastern British Columbia.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of NAL’s properties as part of the Company’s year-end reporting (the “McDaniel Report”). Some of the Company’s properties were fully evaluated by McDaniel, while some of the minor properties were audited by McDaniel. The McDaniel Report is effective December 31, 2016 using McDaniel’s January 1, 2017 forecast pricing.
NAL used the data from the McDaniel Report to prepare reports on the Properties. The economic runs prepared by McDaniel for the wells in the individual packages were grouped into the respective Properties by NAL. NAL then mechanically updated the individual reports to an effective date of April 1, 2017 using McDaniel’s January 1, 2017 forecast pricing.
McDaniel & NAL estimate that, as of April 1, 2017, the Properties contained remaining proved plus probable reserves of 2.2 million barrels of oil and natural gas liquids and 16.5 Bcf of natural gas (5.0 million boe), with an estimated net present value of $37.1 million using forecast pricing at a 10% discount.
NAL’s preference is for offers for NAL’s interests within the boundaries indicated for the individual Properties and not portions thereof.
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, June 8, 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