MNP Ltd. was appointed as receiver and manager (the “Receiver”) of all of the assets, properties and undertakings of COGI Limited Partnership, Canadian Oil & Gas International Inc. Conserve Oil Group Inc. and Conserve Oil 1st Corporation (collectively “COGI” or the “Company”) pursuant to orders of the Court of Queen’s Bench of Alberta.
In November 2016, a process to sell the oil and natural gas assets of COGI was undertaken. Subsequent to the sales process, certain oil and natural gas assets of the Company were either sold or certain of the Company’s operated wells were disclaimed by the Receiver.
Sayer Energy Advisors has been engaged to assist the Receiver in divesting all of the remaining oil and natural gas properties held by COGI (the “Properties”). While the divestiture includes all of the Properties of COGI, and while the Receiver’s preference is to sell as many properties as possible in each transaction, the Properties will be offered individually. Interested parties are free to make offers to acquire any property, in whole or in part. A complete description of the Sales and Asset Disposal Process can be found on Sayer’s website, www.sayeradvisors.com.
The Properties include properties operated by COGI, third-party operated properties in which COGI holds a working interest, and properties in which COGI holds a royalty interest.
Recent sales volumes net to COGI from its working interest Properties has averaged approximately 1,493 boe/d (6.37 MMcf/d of natural gas and 432 barrels of oil and natural gas liquids per day). COGI’s operated properties produce a total of 1,089 boe/d (4.2 MMcf/d of natural gas and 389 bbl/d of oil and natural gas liquids) net to the Company. Non-operated properties contribute a total of 404 boe/d (2.17 MMcf/d of natural gas and 43 bbl/d of oil and natural gas liquids).
Total recent royalty production received by the Company has averaged approximately 40 boe/d, with recent total royalty revenue of approximately $12,000-$17,000 per month.
Operated Properties
In south central Alberta, COGI operates producing oil and natural gas properties in the Stanmore (natural gas), Watts (natural gas), Three Hills (oil and natural gas), Penhold (oil and natural gas), Leo (oil and natural gas), Halkirk (oil and natural gas), Joffre (Hillsdown) (oil and natural gas), Leahurst (natural gas) and Red Willow (oil) areas.
In east central Alberta, the Company operates a producing natural gas property at Cold Lake.
West of the fifth meridian, COGI operates minor producing natural gas properties in the Ferrier, Brazeau and Leland areas. On the Peace River Arch, the Company operates a minor producing natural gas property at Pouce Coupe and a minor producing oil and natural gas property at Boundary Lake.
The Company’s operated properties are being managed by Niven Fischer Energy Services Inc. (“Niven Fischer”). A small number of the Company’s operated properties contain some non-operated wells, and a small number of the mainly non-operated properties contain a small number of operated wells.
Niven Fischer estimates that, as of July 1, 2016, the producing wells that COGI operates contained remaining proved developed producing reserves of 929,000 barrels of oil and natural gas liquids and 10.4 Bcf of natural gas (2.7 million boe), with an estimated net present value of $18.8 million using forecast pricing at a 10% discount.
Non-Operated Properties
The Company has varying working interests in a number of non-operated producing properties west of the fourth meridian in Alberta, including Carsland (natural gas), Cessford (natural gas), Ghost Pine (natural gas), Delia (Hanna) (natural gas), Twining (natural gas), Rowley (natural gas), Huxley (oil and natural gas), Gadsby (natural gas), Oberlin (Stettler) (natural gas),Gull Lake (natural gas), Forestburg (oil), Bashaw (natural gas) and Wandering River (natural gas).
West of the fifth meridian, COGI holds non-operated working interests in producing properties in the Gilby (oil), Niton (natural gas), Wild River (natural gas), Marten Creek (natural gas) andNipisi (natural gas) areas.
On the Peace River Arch, the Company holds non-operated working interests in producing properties in the Wembley (natural gas) and Grande Prairie (oil) areas.
Niven Fischer estimates that, as of July 1, 2016, the producing wells that COGI has a non-operated working interest in contained remaining proved developed producing reserves of 122,000 barrels of oil and natural gas liquids and 2.9 Bcf of natural gas (604,000 boe), with an estimated net present value of $4.0 million using forecast pricing at a 10% discount.
Royalty Properties
COGI holds royalty interests in a number of producing and non-producing wells in the Bashaw, Carsland, Cessford, Cold Lake, Gadsby, Halkirk, Hillsdown, Joffre (Hillsdown), Leahurst, Penhold, Retlaw (Little Bow), Rosalind (Edberg), Twining and Wandering River areas west of the fourth meridian, and in the Cygnet and Marten Creek areas west of the fifth meridian.
Total recent royalty production received by the Company has averaged approximately 40 boe/d, with recent royalty revenue of approximately $12,000-$17,000 per month.
Non-producing royalty interests are held by the Company in numerous other areas.
The strong preference is to sell all of the royalty properties in one transaction.
Niven Fischer estimates that, as of July 1, 2016, the producing wells that COGI has a royalty interest in contained remaining proved developed producing reserves of 16,000 barrels of oil and natural gas liquids and 432 MMcf of natural gas (88,000 boe), with an estimated net present value of $1.15 million using forecast pricing at a 10% discount.
The strong preference is to sell all of the royalty properties in one transaction.
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).
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Cash offers relating to this receivership sale will be accepted until 12:00 pm on Thursday, January 18, 2018.
For further information please feel free to contact: Tom Pavic, Ben Rye, Grazina Palmer, Ryan Ferguson Young or myself at 403.266.6133.
Alan W. Tambosso, P.Eng. P.Geol.
President
SAYER ENERGY ADVISORS
1620, 540 – 5th Avenue SW
Calgary, Alberta T2P 0M2
P: 403.266.6133 C: 403.650.8061 F: 403.266.4467
www.sayeradvisors.com