Sayer Energy Advisors has been engaged to assist 119307 Alberta Corporation (“119307” or the “Company”) with the sale of its oil and natural gas property in the Dunvegan area of Alberta (the “Property”).
The Property consists of a 0.921% working interest in the Dunvegan Gas Unit No. 1 (the “Unit”), as well as various non-Unit oil and natural gas wells.
Recent sales net to 119307 from the Property have averaged approximately 77 boe/d (325 Mcf/d and 23 barrels of oil, free condensate and natural gas liquids per day).
Approximately 96% of the Company’s production and net operating income from the Property is generated from the Unit, with the balance from its minor working interests in three non-Unit Debolt oil wells.
Since being formed in 1973, the Unit has produced approximately 1.3 Tcf of natural gas and 2.3 million barrels of oil and free condensate. Recent sales net to 119307 from the Unit have averaged approximately 73 boe/d (320 Mcf/d and 20 barrels of condensate and natural gas liquids per day).
The majority of the Company’s non-Unit oil production is from its 4.97% pooled working interest in the Dunvegan Debolt BB Pool that has been under waterflood since 1998. This pool is currently producing approximately 52 barrels of oil per day from two wells. The Company’s recent net sales from its non-Unit working interests have averaged approximately three boe/d (2.6 barrels of oil and natural gas liquids per day and minor volumes of natural gas sales).
GLJ Petroleum Consultants Ltd. (“GLJ”) prepared an independent reserves evaluation of 119307’s properties as part of the Company’s year-end reporting (the “GLJ Report”). The GLJ Report is effective December 31, 2017 using GLJ’s January 1, 2018 forecast pricing.
GLJ estimates that, as of December 31, 2017, the Property contained remaining proved plus probable reserves of 102,000 barrels of oil and natural gas liquids and 1.4 Bcf of natural gas (340,000 boe), with an estimated net present value of $2.2 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).
Proposals relating to this divestiture will be accepted until 12:00 pm on Thursday, February 21, 2019.
For further information please feel free to contact: Mark Zalucky, Ryan Ferguson Young, Ben Rye, Grazina Palmer, Tom Pavic 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