Western Divestments Inc. has been retained by Convega Energy Ltd. to assist in the sale of its 100% operated working interest at Cessford, Alberta in T24 R13/14 W4M. Located approximately 200 km east of Calgary, the property consists of just over 640 acres of crown land with P&NG rights from Surface to Base Mannville excl. NG in the Colorado and Blairmore Formations. There are no overrides and no ROFR’s associated with this property. There are seven wells on the property four of which currently produce 20 BOPD 30 degree API oil and 80 MCFD solution gas from the Mannville Formation. The wells produce at a 1% watercut.
These wells have steady production and gas/oil ratios with low decline and are projected to produce over 50,000 barrels of oil and almost 0.25 BCF gas without utilizing EOR methods.
Convega, as operator of the lower Mannville oil pool in Section 34 and 35 of T24-R13 W4M, was successful in its May 2015 application to have the pool designated as a separate pool from the existing Cessford Commingled Pool 002. The separate pool is designated as the Mannville T13T pool.
Based on current mapping and reservoir characterization Convega has determined that the T13T pool is an excellent, potential EOR candidate. This project would involve the conversion of select existing Mannville T13T producers to water injectors with the potential for drilling infill producers to complete the pattern. Convega expects significant incremental oil reserves could be realized by this project.
The LLR asset value is $1,085,283 with an LLR liability value of $437,451. Property LLR ratio is 2.48.
A confidential secondary package can be obtained by completing and signing the Confidentiality Agreement found on our website. Please return the signed CA to moyalittle@westerndivestments.com.
Non-binding bids on this offering will be accepted until 5:00 pm (MDT), October 19th, 2017.
For any questions please contact Moya Little at 403-543-4080
Moya Little
President
Western Divestments Inc.
105, 214 – 11 Avenue SE
Calgary, Alberta
T2G 0X8