Sayer Energy Advisors has been engaged by ISH Energy Ltd. (“ISH” or the “Company”) to assist with the sale of certain non-core assets located in the Kirby and Cecilareas of Alberta and the Edam area of Saskatchewan (the “Properties”).
In the Kirby area of Alberta, ISH holds the P&NG rights from surface to basement, or from surface to the base of the Mannville Group, in 108.25 sections of Crown land, excluding the oil sands rights in the Wabiskaw and McMurray formations. ISH holds a 100% working interest in approximately half of the land at Kirby, and a 46.25% working interest in the remainder.
Natural gas production net to ISH from the Kirby property recently averaged 1.1 MMcf/d. Production at Kirby is from the Grand Rapids, Wabiskaw and McMurray formations.
At Cecil, ISH holds 12.5%-25% non-operated working interests in six sections of land. Oil and natural gas production at Cecil is primarily from the Charlie Lake Formation, with minor production from the Montney Formation. Production net to ISH from Cecil recently averaged approximately 17 boe/d, consisting of 56 Mcf/d of natural gas and eight barrels of oil and natural gas liquids per day.
In the Edam area of Saskatchewan, ISH holds a 100% working interest in approximately 6.1 sections of land. Production net to ISH from the Edam property recently averaged approximately 79 boe/d, consisting of 59 barrels of heavy oil per day and 118 Mcf/d of natural gas.
The Company prepared a reserves evaluation of the Kirby property specifically for this divestiture (the “Reserve Report”). The Reserve Report is effective July 1, 2018 using GLJ Petroleum Consultants Ltd.’s April 1, 2018 forecast pricing. The Cecil and Edam properties were not evaluated for this divestiture.
The Company estimates that, as of July 1, 2018, the Kirby property contained remaining proved plus probable reserves of 28.5 Bcf of natural gas (4.8 million boe), with an estimated net present value of $16.6 million using forecast pricing at a 10% discount. The Company also estimates that the Kirby property contains additional contingent reserves of 13.9 Bcf of natural gas (2.3 million 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).
Cash offers to acquire the Properties will be accepted until 12:00 pm on Thursday, November 8, 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