Sayer Energy Advisors has been engaged to assist Bering Exploration Company, ULC and its related entities, Lexington Oil & Gas Co. and Vitus Oil and Gas, ULC (collectively “Bering” or the “Companies”) with the sale of the shares of the Companies. Bering is a private company with a small number of shareholders, four employees, low overhead and positive working capital.
Bering’s properties are located in the Sullivan Lake, Mitsue and Peace River Arch (“PRA”) areas of Alberta (the “Properties”). In the PRA area of Alberta, Bering has properties in theValhalla, Pouce Coupe and Gordondale areas. In addition to its producing properties, Bering also holds various interests in several minor non-producing properties located in the Mikwan and Fenn Big Valley (Rich) areas of Alberta. Bering’s Mikwan property is comprised of three sections of land prospective for the Duvernay Formation.
Total production net to Bering from the Properties has averaged approximately 791 boe/d, consisting 612 barrels of oil and natural gas liquids per day and 1.1 MMcf/d of natural gas.
Recent net operating income from the Properties averaged approximately $590,000/month, or approximately $7.1 million on an annualized basis.
As of November 4, 2017, Bering had a positive deemed net asset value of $22.9 million (deemed assets of $26.8 million less liabilities of $3.8 million), with an LMR ratio of 6.97.
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of Bering’s properties as part of the Companies’ year-end reporting effective December 31, 2016, using Deloitte’s December 31, 2016 forecast pricing.
Deloitte estimates that as of December 31, 2016, the Properties contained remaining proved plus probable reserves of 1.8 million barrels of oil and natural gas liquids and 10.1 Bcf of natural gas (3.5 million boe), with an estimated net present value of $45.6 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).
Proposals relating to this process will be accepted until 12:00 pm on Thursday, December 21, 2017.
For further information please feel free to contact Ben Rye, Tom Pavic, Grazina Palmer, Ryan Ferguson Young 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