• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Columns
    • Discussions
  • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAODC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Well Licences
    • USA Market Data
    • Data Subscription
  • Jobs

West Lake Energy Corp: Non-Core Property Divestiture

September 14, 20187:15 AM Alan Tambosso

West Lake Energy Corp. (“West Lake” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of its non-core producing heavy oil properties located in the Silverdale, Furness, Tangleflags, Lashburn, Mervin, Pikes Peak, Epping, Celtic, Primate and Freemont areas of Saskatchewan as well as non-producing properties located in the Maidstone, Ear Lake, Manitou, Macklin, Marsden and Rush Lake areas of Saskatchewan (the “Properties”).

West Lake operates all of the Properties, generally holding a 100% working interests including associated facilities.

The Properties are generally located near Lloydminster, Saskatchewan and have minimal impending expiries.  The Company has ownership in significant seismic data coverage relating to the Properties.

Total production net to West Lake from the Properties averaged approximately 1,179 boe/d in the second quarter of 2018, consisting of 1,179 barrels of heavy oil per day and 16 Mcf/d of natural gas.  Sales from the property consist of 99% oil.

Net operating income from the Properties has averaged approximately $3.5 million for the 12 months ended June 30, 2018 and is forecasted to be approximately $5.4 million on an annualized basis, based on second quarter 2018 net operating income.

As of July 28, 2018, the Properties had a positive deemed net asset value of $7.1 million (deemed assets of $42.5 million less liabilities of $35.3 million), with an LMR ratio of 1.20.

West Lake has mapped significant upside on the Properties which resulted in a total of 21 proved plus probable horizontal and vertical drilling locations booked on the Properties and an additional 178 unbooked drilling locations, as well as 120 recompletion opportunities (93 unbooked) and a total of 69 reactivation candidates (65 unbooked).

McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties as part of the Company’s year-end reporting.  The Company extracted a portion of the McDaniel report specifically for this divestiture (the “Reserve Report”).  The Reserve Report is effective December 31, 2017 using McDaniel’s January 1, 2018 forecast pricing.

The Company estimates that, as of December 31, 2017, the Properties contained remaining proved plus probable reserves of approximately 3.2 million barrels of oil, with an estimated net present value of $23.3 million using forecast pricing at a 10% discount.

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 to view more detailed information on West Lake Energy Corp.’s Non-Core Property Divestiture

Cash offers to acquire the Properties will be accepted until 12:00 pm on Tuesday, October 16, 2018.  Preference will be given to offers to acquire the Properties as one complete package; however, offers will be considered for individual Properties.

For further information please feel free to contact: Ben Rye, Ryan Ferguson Young, Mark Zalucky, Grazina Palmer, Tom Pavic or myself at 403.266.6133.

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

Property Listings

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn
Sign up for the BOE Report Daily Digest E-mail
Latest Headlines
  • NuVista Energy Ltd. announces year end 2020 reserves, financial and operating results
  • Suncor Energy announces significant progress on debt management and reduction and the pricing of US$ 750 million notes offering and CAD$ 500 million medium term notes offering
  • New oil and gas jobs from BOE Report Jobs
  • Natural gas can help solve climate change, industry reminds policymakers
  • Waterous Energy Fund completes takeover of Osum Oil Sands Corp

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2021 Grobes Media Inc.