Property Offering: Glencoe Resources Ltd., in Receivership

Hardie & Kelly Inc., in its capacity as Court appointed Receiver of Glencoe Resources Ltd., has retained CB Securities Inc. as its advisor for the sale of Glencoe’s oil and gas properties.

All of Glencoe’s properties were evaluated by Sproule Associates Limited effective April 30, 2017.

Chigwell Viking Units

• 230 Bbls/day of currently curtailed light oil production
• Significant identified phased Viking development projects
  • 3 separate medium scale sized projects at $7.3, $9.0, and $15.4 million of net capital
  • 0 to 2.8 MMBbls of net reserves addition at average of $11.65/Bbl
  • 2,200 to 3,050 Bbls/day of net oil production addition at average of $10,400/Bbl/day

Glencoe holds non-operated working interests in 6 Viking units that range from developed, to essentially undeveloped under miscible CO2 flood. Production from the Units is currently curtailed due to CO2 injection constraints. Injection capacity was impaired by unsuccessful historical attempts to implement a water alternating gas (“WAG”) injection scheme Oil production from the Units is currently limited to ~485 (230 net) Bbls/day with many wells capable of significant  oil production contribution shut-in or being cycled on and off without the current ability to reinject the CO2 produced with the light oil.

Chigwell Non-Unit (Mannville, CBM)

• 258 BOE/day of current net production, consisting of 1.4 MMcf/day of sales gas, 13 Bbls/day of oil, and 12 Bbls/day of natural gas liquids
• $0.9 million forecast 2017 net operating income from existing wells
• 168 (66 net) sections of land at varying operated and non-operated working interests
• Excellent multi-zone, under-developed Mannville oil and liquids rich gas with horizontal development upside
  • Glauconitic potential with EOR: 12 MMBbls and 2,900 Bbls/day of oil
  • Upper Mannville gas potential: 24 MMcfe and 17.4 MMcfe/day of liquids rich gas
  • CBM potential: 15 Bcf and 5 MMcf/day of gas

The Chigwell Non-Unit package contains 91 wells producing 44.1 (13.2 net) Bbls/day of oil, 5.83 (1.80 net raw) MMcf/day of raw gas subject to a 22% average surface loss, and 39.0 (12.0 net) Bbls/day of natural gas liquids. There is significant multi-zone oil and liquids rich Mannville horizontal development upside in the Glauconitic, Falher, Colony (Notikewin), Ellerslie (Basal Quartz), and inexpensive high quality Coal Bed Methane development. The property also includes Glencoe’s high interest gathering and processing facilities into which the wells in this package are gathered. There is excess processing capacity for additional production and third party processing income.

Other Properties

• Chigwell Duvernay rights are available separately
• There are also several other minor properties in which Glencoe holds working interests.

Additional non-confidential information on the Properties is provided in the Offering Circular that is available for review by contacting CB Securities or downloading from CB Securities website at www.cbsecurities.com/glencoe-resources-ltd/ or by email at info@cbsecurities.com.

Interested parties are asked to submit a Non-Binding Bid by noon on Wednesday, August 2, 2017.