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
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.