Sayer Energy Advisors has been engaged to assist WLA Investment Ltd. (“WLA” or the “Company”) with the sale of the shares of the Company. WLA is a privately-held company with one shareholder.
WLA currently holds interests in oil and natural gas properties located in the Pembina and Leduc-Woodbend areas of central Alberta (the “Properties”). The Company’s stable, low-decline oil production comes predominantly from its interests in the Blue Rapids Cardium Unit No. 1 and the Leduc Woodbend Glauconitic “D” Unit No. 1.
Net production from the Properties for the three months ended December 31, 2017 averaged approximately 196 boe/d (136 barrels of oil and natural gas liquids per day and 356 Mcf/d of natural gas).
The Company’s recent annualized net operating income is approximately $1.9 million based on the three months ended December 31, 2017.
Sproule Associates Limited (“Sproule”) prepared an independent report on the Properties, as part of the Company’s year-end reporting (the “Sproule Report”). The Sproule Report is effective December 31, 2017 using Sproule’s November 30, 2017 forecast pricing.
Sproule estimates that, as of December 31, 2017, WLA’s Properties contained remaining proved plus probable reserves of 1.0 million barrels of oil and natural gas liquids and 2.5 Bcf of natural gas (1.4 million boe), with an estimated net present value of approximately $19.8 million using forecast pricing at a 10% discount.
As of April 7, 2018, WLA has an LMR ratio of 3.85, with a net deemed asset value of $477,290 ($644,800 deemed assets and $167,510 deemed liabilities.
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).
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, May 17, 2018.
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