Sayer Energy Advisors has been engaged to assist Longshore Resources Ltd. (“Longshore” or the “Company”) with the sale of its non-core oil and natural gas properties located in the Wembley area of Alberta (the “Properties”).
The Properties consist of consolidated land blocks that are held by long-life, low-decline production, with light oil upside in the Lower Charlie Lake, Halfway and Montney formations.
The Properties also include non-operated infrastructure, including the Company’s working interest in the Wembley Gas Plant operated by Cenovus Energy Inc.
Total production net to the Company from the Properties has recently averaged approximately 202 boe/d (885 Mcf/d of natural gas and 55 barrels of oil and natural gas liquids per day). Production from the Properties is primarily from the Halfway, Boundary Lake, Charlie Lake, Doe Creek, Doig and Montney formations.
McDaniel & Associates Consultants Ltd (“McDaniel”) prepared an independent reserves evaluation of Longshore’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 3.5 Bcf of natural gas and 505,000 barrels of oil and natural gas liquids (1.1 million boe), with an estimated net present value of $7.2 million using forecast pricing at a 10% discount.
As of March 3, 2018, the Longshore-operated portions of the Properties collectively had an LLR ratio of 1.21.
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 26, 2018. Longshore’s strong preference is to sell all of the Properties in one transaction.
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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
Alan W. Tambosso, P.Eng. P.Geol.
President
SAYER ENERGY ADVISORS
1620, 540 – 5th Avenue SW
Calgary, Alberta T2P 0M2
P: 403.266.6133 C: 403.650.8061 F: 403.266.4467
www.sayeradvisors.com
