Sayer Energy Advisors has been engaged to assist Canamax Energy Ltd. with the sale of certain non-core oil and natural gas properties located in the Brazeau River and Grande Prairie areas of Alberta (the “Properties”).
Recent production net to Canamax from the Properties has averaged 560 boe/d, consisting of 2.1 MMcf/d of natural gas and 210 barrels of oil and natural gas liquids per day.
At Brazeau River, Canamax holds a 100% working interest in three sections of land, on which it operates two Cardium oil wells and one Rock Creek natural gas well, as well as one shut-in natural gas well. The Company also holds a non-operated 50% working interest in one section of land on which there is a producing Mannville natural gas well.
Canamax’s net sales from the Brazeau River property in July 2017 were approximately 192 boe/d (820 Mcf/d of natural gas and 11 barrels of oil per day, and 44 barrels of free condensate and natural gas liquids per day).
As of October 7, 2017, the Brazeau River property had a deemed net asset value of $1.49 million (deemed assets of $2.36 million and deemed liabilities of $0.87 million), with an LLR rating of 2.70.
In the Grande Prairie area, Canamax holds a 100% working interest in five producing oil wells in the Grande Prairie Dunvegan “C” Pool, a 100% working interest in five producing wells in the Grande Prairie Montney “I” Pool and a 50% working interest in one Halfway oil well. The Company also operates one 100% working interest Montney natural gas well at Culp which produces approximately 80 Mcf/d of natural gas.
Recent sales net to Canamax from Grande Prairie have averaged approximately 368 barrels of oil equivalent per day (113 barrels of oil per day, 42 barrels of natural gas liquids per day and 1.28 MMcf/d of natural gas).
As of October 7, 2017, the Grande Prairie property had a deemed net asset value of $4.18 million (deemed assets of $8.10 million and deemed liabilities of $3.92 million), with an LLR rating of 2.08.
GLJ Petroleum Consultants Ltd. (“GLJ”) prepared an independent reserves evaluation of Canamax’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 January 1, 2017 forecast pricing.
GLJ estimates that as of December 31, 2016, the Properties contained remaining proved plus probable reserves of 1.3 million barrels of oil and natural gas liquids and 13.5 Bcf of natural gas (3.6 million boe), with an estimated net present value of $15.3 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).
Cash offers relating to this divestiture will be accepted until 12:00 pm on Thursday, November 23, 2017.
For further information please feel free to contact: Ben Rye, Tom Pavic, Ryan Ferguson Young, Grazina Palmer 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