Sayer Energy Advisors has been engaged to assist Carrick Petroleum Inc. (“Carrick” or the “Company”) with a strategic alternatives process. Potential outcomes include, but are not limited to, a sale of the shares of the Company, a sale of the assets of the Company or a business combination with another entity, preferably public.
Carrick is a private, junior exploration and development company which primarily focused on finding and exploiting oil and natural gas opportunities at the leading eastern thrust edge of the Alberta foothills. As a result, the Company’s only asset is located in the Stolberg area of Alberta (the “Property”).
Recent production net to Carrick from one 100% working interest Bluesky natural gas well and one royalty interest Cardium oil well on theStolberg property has averaged approximately 756 Mcf/d of natural gas and six barrels of oil and natural gas liquids per day (132 boe/d). As of July 1, 2017, Carrick’s Stolberg property had a positive deemed net asset value of $2.42 million (assets of $2.76 million less liabilities of $0.34 million), with an LMR ratio of 8.22.
McDaniel & Associates Consultants Ltd. estimates that, as of December 31, 2016, the Stolberg property contained remaining proved plus probable reserves of 20,000 barrels of oil and natural gas liquids and 2.7 Bcf of natural gas (477,000 boe), with an estimated net present value of $2.3 million using McDaniel’s forecast pricing at a 10% discount.
The Company has no debt. The Company’s focused operations, coupled with its clean balance sheet and its high deemed asset value would make the acquisition of Carrick for shares an attractive opportunity to many junior public oil and natural gas companies.
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 strategic alternatives process will be accepted until 12:00 pm on Thursday, August 24, 2017.
For further information please feel free to contact Ben Rye, Jill Switzer, Tom Pavic 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