Sayer Energy Advisors has been engaged to assist Tidewater Midstream and Infrastructure Ltd. (“Tidewater” or the “Company”) with the sale or farmout of certain oil and natural gas interests located in the Montney resource play region of northeastern British Columbia (the “Properties”).
The Properties offer production potential from multiple reservoirs alongside key Tidewater infrastructure with substantial drilling upside in the Montney Formation. The Properties are connected to an extensive facility network with processing capacity of approximately 45 MMcf/d.
In the Graham area of British Columbia, Tidewater holds various working interests in approximately 143,932 gross acres (90,527 net) of land including rights in the 30,205 gross acres (22,188 net) of Montney rights. In addition, Tidewater holds various working interests in approximately 55,276 gross acres (40,184 net) of land in Northeast BC including 39,462 gross acres (31,101 net) of Montney rights.
Reactivation of legacy production offers production potential from the Properties of approximately 4-6 MMcf/d of natural gas net to Tidewater. Prior to being shut-in in May 2016, the Properties were producing low decline natural gas primarily from the Debolt and Baldonnel, Jean Marie, Halfway and Boundary Lake formations.
Tidewater holds a 32% working interest in the Cypress Gas Facilities, including the natural gas gathering system, natural gas sales pipeline and Cypress Sour Gas Plant located at 94-B-16 Block C Unit 99 (B). Capacity of the Cypress Sour Plant is approximately 45 MMcf/d. The assets are connected to the Westcoast mainline and offer potential to be connected to the TCPL Montney expansion.
Tidewater intends to retain the infrastructure assets and work with producers on providing full-service midstream solutions. If a party wishes to own a small working interest in the infrastructure, Tidewater would be willing to consider such proposals and requests that proposals include the desired ownership percentage and dollar value ascribed to the infrastructure assets.
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.
Proposals relating to this divestiture will be accepted until 12:00 pm on Thursday, March 7, 2019.
For further information please feel free to contact: Tom Pavic, Ben Rye, Mark Zalucky, Grazina Palmer, Ryan Ferguson Young or Alan Tambosso at 403.266.6133.