Nexen Energy ULC (“Nexen” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of certain of its non-core properties in various areas of Alberta, Saskatchewan and the Northwest Territories, Canada (the “Properties”). Included in this offering is Nexen’s Crossfield area asset.
The Crossfield property is characterized by long-life assets with shallow decline rates, a material land position with significant upside for Coalbed Methane (“CBM”) development as well as liquids-rich natural gas production with an attractive royalty rate. Natural gas production net to Nexen from Crossfield has recently averaged approximately 7.3 MMcf/d.
The Company is also divesting its pipelines in the Crossfield area, valuable infrastructure that may have potential future use for a number of purposes, including supplying natural gas to industrial end users, as there are a number of large natural gas-fired power plants in the area.
In other areas of Alberta, Nexen is divesting royalty properties in the Alberta Foothills and Granum areas, undeveloped land at Berland and Lochend, and a non-producing property at Red Springs. In Saskatchewan, the Company is divesting its Fee Simple title in the Lumsden area, undeveloped land in the Big Muddy/Hardy, Cypress Hills and Willow Creek areas, and undeveloped land in the Findlater/Lumsden area that is prospective for development of potash reserves. In the Northwest Territories, Nexen holds working interests or royalty interests in undeveloped land in the Arctic Islands, Forsheim and La Biche areas.
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).
Click here for more detailed information
Cash offers to acquire the Properties will be accepted until 12:00 pm on Thursday, August 2, 2018.
For further information please feel free to contact: Ben Rye, Tom Pavic, Mark Zalucky, Grazina Palmer, Ryan Ferguson Young or myself at 403.266.6133.
Alan Tambosso
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