Pond Technologies Holdings Inc. and Grizzly Resources Ltd. have retained CB Securities Inc. as their exclusive advisor for the sale of their working interests in the Pembina Nisku oil property.
Opportunity Summary
- Original oil-in-place is 7.4 MMBbls plus a significant gas cap
- Well-delineated Nisku pool defined by existing wells and 3D seismic
- High porosity (>10%), high permeability (800 mD), high productivity
- Produce oil under waterflood until ~95% watercut, then blow down the gas cap
- Recovery factors forecast to range from 30% to 38%
- Cumulative recovery of Sproule estimated OOIP is only 13%
- Most analogous Nisku pools in the area typically have recovery factors of ~45%
- Some Nisku pools in the area under tertiary miscible flood (after completion of a secondary waterflood) have ultimate recovery factors exceeding 75%
- 2 producing wells, 1 water injection well, 1 potential water injector well, and associated pad facilities
- Pond has a 15.625% working interest
- Grizzly has a 46.875% operated working interest and is the operator of record
- Property is contract operated by a third party
- Gross production has recently averaged ~1,025 BOE/day
- 800 Bbls/day light 42° API oil, 1.0 MMcf/day sales gas, and 60 Bbls/day NGL
- Both producing wells choked as necessary to keep a VRR of ~1
- Major upsides for this pool are:
- achieving a higher ultimate secondary waterflood recovery factor than forecast
- future implementation of a tertiary miscible flood
- fee reductions to extend the economic producing life of the wells
- Grizzly LMR of 95.1 with $32.7 million of deemed assets and $0.3 million of deemed liabilities
Bidders have the option of submitting an offer for either Pond’s 15.625% working interest or Grizzly’s 46.875% working interest as standalone, or for the combined 62.5% working interests. Pond and Grizzly will decide on their own whether to accept and proceed with any proposed transaction
Additional detailed information on the property can be found on our website at www.cbsecurities.com/grizzly-resources-ltd/ as well as in the Offering Circular that is available for review by contacting CB Securities at info@cbsecurities.com
Interested parties are asked to submit a Non-Binding Bid by noon on Thursday, June 28th, 2018.
