Sayer Energy Advisors has been engaged to assist Grant Thornton Limited, in its capacity as court-appointed receiver and manager of Forent Energy Ltd. (“Forent” or the “Company”) with the sale of the oil and natural gas properties held by Forent (the “Properties”).
The Company currently produces approximately 126 boe/d (87 barrels of oil and ngls per day and 231 Mcf/d of natural gas) primarily from its main properties at Twining, Wayne and Provost. The properties are characterized by high working interest, low decline, long reserve life oil production with significant development potential, particularly through horizontal drilling.
The Company also has an undeveloped acreage position in the Heathdale area.
In the Montgomery area, Forent has a large proprietary 3D seismic survey which it shot on the strength of a high impact exploration prospect targeting light oil in a naturally fractured Second White Speckled Shale (2WS) reservoir.
Forent also holds royalty interests in numerous wells in various areas of Alberta and it holds various working interests in minor producing properties in the Crossfield, Ferrybank, Huxley (currently shut-in), Richdale and Rumsey areas. Recent net operating income from the Company’s working interest properties has averaged approximately $44,000 per month and recent royalty revenue has averaged approximately $2,200 per month.
As of February 3, 2018, Forent’s properties had a positive deemed net asset value of $701,793 (deemed assets of $6,373,607 less liabilities of $5,671,814), with an LMR ratio of 1.12.
McDaniel & Associates Consultants Ltd. prepared an independent reserves evaluation of Forent’s properties as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report is effective December 31, 2017 using McDaniel’s January 1, 2018 forecast pricing.
McDaniel estimates that, as of December 31, 2017, Forent’s properties contained remaining proved plus probable reserves of 1.0 million barrels of oil and natural gas liquids and 1.1 Bcf of natural gas (1.2 million boe), with an estimated net present value of $12.2 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 Properties will be accepted until 12:00 pm on Thursday, April 12, 2018.
For further information please feel free to contact: Tom Pavic, Ben Rye, 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