Sayer Energy Advisors has been engaged to assist Hitic Energy Ltd. (“Hitic” or the “Company”) with the sale, farmout or other form of disposition of its Sturgeon Lake, Alberta Duvernay property (the “Property”).
In the Sturgeon Lake area, Hitic has a 100% working interest in 122.5 sections of land where it holds Duvernay rights, with another 12 sections of land where the Company holds shallower rights only. The Company’s land is situated in the thickest and most thermally mature part of the Sturgeon Lake Duvernay prospect. The Company is in the process of licensing its first well, from a pad that has been built to accommodate the drilling of up to six wells.
The geology of the Sturgeon Lake Duvernay sub-basin is similar to the geology in other proven basins where the Duvernay produces oil. Hitic estimates that the OOIP underlying its land is approximately two billion barrels (122.5 sections with 17 million barrels per section). Type curve analysis suggests recovery of 441,000 barrels of oil equivalent per well (88% light oil) from a 2,500 metre horizontal well completed with a 4,250 tonne frack. Hitic estimates the finding and development costs to be $17/boe.
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 the Property will be accepted until 12:00 pm on Thursday, August 16, 2018.
For further information please feel free to contact: Tom Pavic, Ben Rye, Mark Zalucky, Grazina Palmer, Ryan Ferguson Young 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