Gryphon Petroleum Corp. (“Gryphon” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of its high working interest sweet light oil property in the Trout area of northern Alberta (the “Property”).
At Trout, Gryphon operates and holds working interests of 64-100% in nine producing Keg River/Granite Wash oil wells and a royalty interest in a tenth producing oil well. The Company also operates two water disposal wells on the Property, with working interests of 47% and 100%, and it holds a 100% working interest in an oil treating facility, a camp and associated buildings.
Recent total production from the Company’s nine working interest oil wells at Trout has averaged approximately 90 barrels of 38o API oil per day, with Gryphon’s net sales recently averaging approximately 82 barrels of oil per day. Gryphon has identified potential to re-activate three suspended oil wells on the Property, which are expected to add a total of 47 barrels of oil per day,
44 barrels of oil per day net to Gryphon.
As of February 3, 2018, the Trout property had a positive deemed net asset value of $1,201,244 (deemed assets of $3,179,088 less liabilities of$1,977,844), with an LMR ratio of 1.61.
GLJ Petroleum Consultants Ltd. prepared an independent reserves evaluation of Gryphon’s properties as part of the Company’s year-end reporting (the “GLJ Report”). The GLJ Report is effective December 31, 2017 using GLJ’s January 1, 2018 forecast pricing.
GLJ estimates that, as of December 31, 2017, the Trout property contained remaining proved plus probable reserves of 487,000 barrels of oil, with an estimated net present value of $7.9 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, 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