Sayer Energy Advisors has been engaged to assist Insignia Energy Ltd. (“Insignia” or the “Company”) with the sale of its non-core oil and natural gas properties located in the Caroline, Birch-Mannville-Wildmere, Honeysuckle, Beaverhill Lake, Ferrier, Crystal, Thorsby, Crossfire, Doris-Corbett, and Widewater areas of Alberta, and the Ladyfern and Nig areas of British Columbia (the “Properties”).
Total production net to Insignia from the Properties has averaged approximately 445 boe/d, consisting of 2.2 MMcf/d of natural gas and 87 barrels of oil and natural gas liquids per day.
Insignia’s recent net operating income from the producing Properties has averaged approximately $119,300/month or approximately $1.4 million on an annualized basis.
The Company also holds minor interests in non-producing properties located in the Alsask, Carson Creek, Cherhill, Chinchaga, Crossfield, Crystal, Eaglesham, Endiang, Fenn West, Fenn-Big Valley, Golden Spike, Harmattan, Holmberg, Iron Springs, Lisburn, Lloydminster, Majeau, Manola, Marten Hills, Mink Lake, Newton, Paradise, Pembina, Petitot, Provost, Redwater, Rivercourse Omega, Sibbald, Sounding Lake, Springburn, Sturgeon, Tangent, Thorsby, West Pembina and Wood River areas of Alberta.
As of February 3, 2018, the Properties had a deemed net asset value of $736,768 (deemed assets of $7.6 million and deemed liabilities of $6.9 million), with an LLR ratio of 1.11.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of Insignia’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, the Properties contained remaining proved plus probable reserves of 21.2 Bcf of natural gas and 551,000 barrels of oil and natural gas liquids (4.1 million boe), with an estimated net present value of $12.6 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).
Cash offers to acquire the Properties will be accepted until 12:00 pm on Thursday, April 19, 2018. Insignia’s strong preference is to sell all of the Properties in one transaction.
For further information please feel free to contact Ben Rye, Tom Pavic, Ryan Ferguson Young, Mark Zalucky Grazina Palmer 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