Sayer Energy Advisors has been engaged to assist Little Rock Resources Ltd. (“Little Rock” or the “Company”) with the sale of its non-core oil property located in the Chin Coulee area of Alberta (the “Property”). Chin Coulee is located 30 kilometres southeast of Taber, Alberta.
At Chin Coulee, Little Rock holds a 100% interest in low-decline oil production from two Sawtooth oil pools that are currently under waterflood. Current production net to Little Rock fromChin Coulee is approximately 150 barrels per day of oil (average 24° API).
As of February 3, 2018, Little Rock’s Chin Coulee property had a deemed net asset value of $2.8 million (deemed assets of $7.1 million and deemed liabilities of $4.3 million), with an LLR ratio of 1.65.
GLJ Petroleum Consultants Ltd. (“GLJ”) prepared an independent reserves evaluation of Little Rock’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 Chin Coulee property contained remaining proved plus probable reserves of 405,000 barrels of oil, with an estimated net present value of $2.4 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 to acquire the Property will be accepted until 12:00 pm on Thursday, March 22, 2018.
For further information please feel free to contact Ben Rye, Tom Pavic, Mark Zalucky, 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