Sayer Energy Advisors and PricewaterhouseCoopers Corporate Finance Inc. have been engaged to jointly assist PricewaterhouseCoopers Inc. (“PwC”), in its capacity as court-appointed receiver and manager (the “Receiver”) of the assets of Anterra Energy Inc. (“Anterra” or the “Company”) with the sale of the oil and natural gas properties held by the Company (the “Properties”).
Total gross production from the Properties has recently averaged approximately 375 boe/d (332 barrels of oil and natural gas liquids per day and 257 Mcf/d of natural gas).
Anterra owns a 100% working interest in a multi-well battery at Breton, which is used as a custom treating and single shipper clean oil terminal to handle and treat the Company’s fluids as well as third party fluids through to point of sale. The Breton terminal’s location is easily accessible off a paved highway and capable of receiving oil emulsion products from third parties via two truck offloading risers at the site. The water handling capabilities and clean oil terminal are unique to the market area surrounding Breton.
Anterra holds mainly 100% working interests in a number of Gilwood oil wells in the Nipisi area. Current gross raw production from the Company’s 15 producing oil wells is approximately 282 boe/d (258 bbl/d of oil, and 144 Mcf/d of natural gas). Anterra’s net operating income from Nipisi is forecasted to be approximately $2.1 million in 2017. The Nipisi property is in part under waterflood; however, due to the complex nature of the Gilwood geology, a previous operator conducted an extensive technical review of the property.
Anterra’s other producing properties are located in the Matziwin, Breton and Two Creek areas of Alberta.
The Company also holds interests in several non-producing properties located in the Abbott area of Saskatchewan, the Suffield, Scots Lake, Strathmore, Minnehik Buck Lake, Judy Creek, Sakwatamau and Shadow areas of Alberta as well as other abandoned wellbores with no associated mineral rights. The Suffield and Shadow properties generate revenue from third party water disposal.
Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of Anterra’s properties as part of the Company’s year-end reporting (the “Sproule Report”). The Sproule Report is effective December 31, 2016 using Sproule’s December 31, 2016 forecast pricing.
Sproule estimates that, as of December 31, 2016, the Properties contained remaining proved plus probable reserves of 1.7 million barrels of oil and natural gas liquids and 913 MMcf of natural gas (1.9 million boe), with an estimated net present value of $22.8 million using forecast pricing at a 10% discount.
The value above includes $4.2 million (at a 10% discount) in value from Anterra’s midstream assets, of which $4.0 million comes from the Company’s Breton oil terminal.
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).
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, August 3, 2017.
For further information please feel free to contact: Tom Pavic, Ben Rye, Jill Switzer, Ryan Ferguson Young or myself at 403.266.6133 or Bryce Heggie of PricewaterhouseCoopers Corporate Finance Inc. at 403.441.6357.
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