The Board of Directors of Corinthian Oil Corp. (“Corinthian” or the “Company”) has engaged Sayer Energy Advisors to assist it with managing a strategic alternatives process for the Company. Potential outcomes of the process include, but are not limited to, a sale of the shares of the Company, a sale of the assets of the Company, or a refinancing of the Company. The preferred outcome would be the sale of the Company “en bloc” in exchange for either cash or shares of the purchasing company.
Corinthian is a land-rich private company with 162,000 net acres of land hosting a diverse portfolio of oil development opportunities from the Duvernay Formation in Central Alberta to the Mannville in Southern Alberta and the Triassic on the Peace River Arch.
The Company’s most significant asset is its 29,740 acres of deep rights in the heart of the evolving Duvernay oil play in the Huxley and Joffre areas, in the East Shale Basin of central Alberta. Corinthian’s land is offset by recent successful drilling in the Duvernay as well as a recent increase in land sale activity and prices.
The Company has 19.75 sections of deep rights in the Huxley area (Township 31-35, Range 23-24 W4), where the Duvernay is productive for 40o API oil from a depth of approximately 2,200 metres, and 26 sections of deep rights in the Joffre area (Township 40-41, Range 1-2 W5), where the Duvernay is productive for 40o API oil from a depth of approximately 2,500 metres.
Corinthian currently produces approximately 200 barrels of oil equivalent per day from its 100,000+ net acres of largely contiguous, operated, high working interest lands at Heathdale.
The Company has approximately $4.0 million in positive working capital (estimated as of June 30, 2017), over $19 million in income tax pools, no long-term debt and minimal term remaining on its office lease.
A purchaser of the shares of Corinthian would acquire an instant entrée into a prime land position in the Duvernay play of Central Alberta, established low decline oil and natural gas production and operational upside in the Heathdale area, and prospective acreage in several other areas of Alberta.
GLJ Petroleum Consultants Ltd. prepared an independent reserves evaluation of Corinthian’s properties as part of the Company’s year-end reporting (the “GLJ Report”). The GLJ Report is effective December 31, 2016 using GLJ’s 2017-01 forecast pricing.
GLJ estimates that as of December 31, 2016, the Heathdale property contained remaining proved plus probable reserves of 464,000 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 $9.6 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
Proposals relating to this process 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