Sayer Energy Advisors has been engaged to assist Grant Thornton Limited, in its capacity as court-appointed receiver (the “Receiver”) of Lexin Resources Ltd., 0989 Resource Partnership, 1051393 BC Ltd., LR Processing Ltd. and the LR Processing Partnership (collectively the “Lexin Group” or “Lexin”) with the sale of fee simple lands (the “Fee Simple Lands”) and seismic data (the “Seismic”) owned by the Lexin Group
Fee Simple Lands: The Fee Simple Lands are located in southern Alberta, primarily south of Calgary. Lexin holds various interests in the Fee Simple Lands, ranging from approximately 4.3% to 100%. The majority of the Fee Simple Lands are currently unleased and presently titled to a predecessor company name, Compton Petroleum Corporation, as well as another company, 1059032 BC Ltd. that is in the process of transferring the assets back to Lexin pursuant to a court-approved settlement agreement. As mentioned, the majority of the Fee Simple Lands are currently unleased; however, many of the Fee Simple Lands are subject to a 5% GOR payable to a third party and some of the lands are burdened by a 12.5% Gross Royalty Trust.
The Receiver’s preference is to receive separate offers for the lands held by each entity, as each entity will have their own unique conveyance process.
Seismic: Lexin owns a significant database of both proprietary (100% owned by Lexin) and partner (owned by Lexin and its partners) 2D and 3D seismic data, including a total of approximately 4,800 kilometres of 2D seismic data and a total of approximately 2,000 square kilometres of 3D seismic data.
The Seismic covers various prospects throughout Alberta and British Columbia. The Seismic was estimated to have a future licensing value of approximately $41 million as per a March 31, 2009 seismic valuation report completed for Compton.
A detailed schedule of the Seismic, which includes, among other information, line names and locations and detailed shooting parameters, as well as the above-noted valuation report will be provided to parties which execute a Confidentiality Agreement (attached).
The basic data is stored in approximately 700 boxes located at Calgary Archives, along with some other third party locations. The data will be made available to the successful bidder for due diligence purposes.
The Receiver’s preference is to sell all of the Seismic in one transaction.
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 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