Sayer Energy Advisors has been engaged to assist Shafam Resources Ltd. (“Shafam”) with the sale of its oil and natural gas royalty interests and minor non-operated working interest properties (the “Properties”). The Properties are located in various areas of Alberta and Saskatchewan. Total production net to Shafam is estimated to be 37 boe/d, consisting of approximately 30 barrels of oil per day and 43 Mcf/d of natural gas.
The royalty properties are located in the Dodsland/Kerrobert/Plenty areas of southwestern Saskatchewan, the Steelman area of southeastern Saskatchewan and in the Lloydminster, McKinley, Redwater and Valhalla areas of Alberta. Production from the royalty properties net to Shafam is estimated to be 26 boe/d, consisting of 23 barrels of oil per day and 18 Mcf/d of natural gas. Total royalty revenue from the royalty properties has recently averaged approximately $275,000 on an annualized basis.
The non-operated working interest properties are located in the Steelman and Dodsland areas of Saskatchewan and in the Cessford, Malmo, Pendant, Retlaw andRycroft areas of Alberta. Total production net to Shafam from its working interest properties is estimated to be 11 boe/d, consisting of seven barrels of oil per day and 25 Mcf/d of natural gas. The net operating income from the minor non-operated working interests has recently averaged approximately $60,000 on an annualized basis.
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 29, 2018. Shafam’s preference would be to sell all of the Properties in one transaction.
For further information please feel free to contact Ryan Ferguson Young, Ben Rye, Tom Pavic, 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