Sayer Energy Advisors has been engaged to assist Corse Energy Corp. (“Corse” or the “Company”) with a corporate sales process. The Company provides an attractive acquisition opportunity with a focused asset base of existing low-decline, shallow natural gas and CBM production. Corse currently has a high LLR rating, no debt and over $800,000 in cash.
The Company’s operations are focused in the Huxley area of Alberta (the “Property”). The Property consists mainly of operated production and includes ownership in all associated pipelines and facilities ideally situated in the East Duvernay Shale Basin. This infrastructure provides the Company with low operating costs and minor third party processing income.
At Huxley, Corse holds working interests ranging from 50-100% (average 88%) in various shallow rights in 10.5 sections of Crown and Freehold land.
Corse operates 11 producing Mannville oil and natural gas wells and 15 producing CBM wells at Huxley. In addition, the Company has a 50% working interest in five producing wells operated by Pine Cliff Energy Ltd.
Corse’s current net production from Huxley is approximately 1.4 MMcf/d of natural gas and 15 barrels of oil, natural gas liquids and condensate per day (245 boe/d).
As of December 1, 2018, Corse had a positive deemed net asset value of $3.4 million (deemed assets of $6.0 million less liabilities of $2.6 million), with an LMR ratio of 2.31.
As of September 30, 2018, the Company had approximately $5.4 million in income tax pools, including $3.3 million in non-capital losses.
Corse Energy Corp. prepared an internal reserves evaluation of its interests at Huxley (the “Reserve Report”). The Reserve Report is effective October 31, 2018 using GLJ Petroleum Consultants Ltd.’s October 1, 2018 forecast pricing.
Corse estimates that, as of October 31, 2018, the Property contained remaining proved plus probable reserves of 173,000 barrels of oil and natural gas liquids and 16.5 Bcf of natural gas (2.9 million boe), with an estimated net present value of $13.9 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).
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, February 7, 2019.
For further information please feel free to contact: Tom Pavic, Ben Rye, Mark Zalucky, Grazina Palmer, Ryan Ferguson Young 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