Strategic Oil & Gas Ltd. (“Strategic” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of its non-core properties in the Conrad and Taber areas of southern Alberta and in the Maxhamish area of NE British Columbia.
Strategic holds a 100% working interest in a number of Sawtooth oil wells in the Conrad area of southern Alberta. Prior to being shut-in in February 2016, the wells were capable of producing a total of 50-75 barrels of medium gravity (23-24o API) oil per day.
The Company holds a 75% working interest in a mature medium gravity (27o API) Glauconitic and Ellerslie oil property at Taber. Recent production from four producing wells on the property has averaged approximately 12 barrels of oil per day. There are ten suspended oil wells which are capable of production.
Strategic’s interpretations of trade 3D and 2D seismic over its land has resulted in the identification of ten development opportunities at Conrad and four infill Glauconitic drilling opportunities at Taber.
Strategic holds a 38.5% non-operated working interest in an oil and natural gas property at Maxhamish. The Company is currently producing approximately 41 boe/d (30 barrels of oil per day and 66 Mcf/d of natural gas) from its working interest in the Maxhamish Chinkeh “A” Pool. There is potential to further develop the oil leg of the pool with multi-frac horizontal wells. Initiation of a waterflood provides additional upside.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of Strategic’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 Maxhamishproperty contained remaining proved plus probable reserves of 56,000 barrels of oil and 81 MMcf of natural gas (69,000 boe), with an estimated net present value of $89,000 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).
Proposals relating to this process will be accepted until 12:00 pm on Thursday, April 19, 2018.
For further information please feel free to contact Tom Pavic, Ryan Ferguson Young, Ben Rye, 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