Prosper Petroleum Ltd. has retained CB Securities Inc. as its exclusive advisor for the sale of the Meota Lake heavy oil property.
Highlights
- 81% to 100% working interest in 3,200 contiguous acres
- Large heavy oil OOIP of ~118 MMBbls on interest lands
- It is only recently that the technology to produce this heavy oil has been utilized in the Lloydminster heavy oil area
- Prosper commenced development in the area in 2011 with horizontals
- Learning curve for Prosper, but Serafina and Husky are recently achieving tremendous results with 6 nearby projects commencing production since mid-2015
- Nearby thermal projects are achieving typical individual well rates of 500 to 1,500 Bbls/day with the addition of heat
- Upside includes infill development drilling of this pool and implementation of a simple thermal project
- 5% to 8% primary recovery factor
- 30% to 50% cyclic thermal recovery factor for alternating of steam injection and production from the same horizontal well
- 60% to 80% full SAGD thermal recovery factor
- 8 horizontal interest wells are capable of producing under primary depletion, a few after identified workovers, but production would be significantly enhanced with the introduction of heat
- 11 additional horizontal infill locations are identified as capable of production on primary depletion
- 29.7 MMBbls of OOIP on 640 acres of known higher quality reservoir
- Total capital costs of ~$10 million ($8 million net)
- Corresponding net present values discounted at 10% for each well would be $1.12 million at a 4% recovery factor and $1.69 million at a 5% recovery factor at 81% working interest
- Primary recovery factor of 8% is possible with updated knowledge of development and production
- The real value is in the addition of heat to the reservoir in the form of either cyclic steam and production or 1 steam injector for each 2 producing wells
- With heat enhancement, 9 additional horizontal infill locations are identified in the thickest, heaviest part of the reservoir, bringing the total number of available horizontal infill locations to 25
- Even at 400 Bbls/day/well, a staged project of 5,000 Bbls/day (~4,500 Bbls/day net) for longer term sustained production could be reasonably expected with thermal development
- 54.8 MMBbls of OOIP under 2.25 sections of land with known quality of reservoir
- 16 MMBbls of recoverable oil at 30% recovery factor
- 27 MMBbls of recoverable oil at 50% recovery factor
- Resources for steam addition are nearby (high pressure gas line through property, power connection nearby, water source within 5 kilometres, established water disposal well on site)
- Infrastructure and highway access nearby
- These lands are a mix of 81% and 100% working interests
- With heat enhancement, 9 additional horizontal infill locations are identified in the thickest, heaviest part of the reservoir, bringing the total number of available horizontal infill locations to 25
Additional detailed information on the property can be found on our website at www.cbsecurities.com/prosper-petroleum-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 Wednesday, November 7th, 2018.