Sayer Energy Advisors has been engaged to assist Hardie & Kelly Inc., in its capacity as Court appointed receiver and manager of Quattro Oil and Gas Ltd. (“Quattro” or the “Company”) in divesting the oil and natural gas properties held by Quattro (the “Properties”).
The Properties are being offered for sale on an as-is where-is basis with no representations or warranties to be provided by the Receiver. To the extent permitted by law and the Court, the Properties will be sold free and clear of all encumbrances.
The Company’s operations are focused in three areas, Southwestern Saskatchewan, Central Alberta and Northeastern British Columbia/Peace River Arch. Quattro’s recent total production from these three operating areas is estimated to be approximately 760 boe/d (394 barrels of oil and natural gas liquids per day and 2.2 MMcf/d of natural gas).
There is upside potential in several operated and non-operated exploitation plays in Central Alberta (Leduc and Viking oil) and in Northeastern BC/Peace River Arch (Halfway, Cecil and Doig oil and Montney natural gas).
GLJ Petroleum Consultants Ltd. (“GLJ”) prepared an NI 51-101 compliant independent reserves evaluation of a number of Quattro’s properties specifically for this divestiture (the “GLJ Report”). The GLJ Report is effective April 1, 2017, using GLJ’s April 1, 2017 forecast pricing.
GLJ estimates that as of April 1, 2017 Quattro’s properties which were evaluated contained remaining proved plus probable reserves of 402,000 barrels of oil and natural gas liquids and 8.3 Bcf of natural gas (1.8 million boe), with an estimated net present value of approximately $5.5 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, June 29, 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