On March 23, 2018, pursuant to the Bankruptcy and Insolvency Act (“BIA”), Sequoia Resources Corporation (“Sequoia” or the “Company”), filed an assignment in Bankruptcy and PricewaterhouseCoopers Inc. LIT (“PwC”) was appointed as Licensed Insolvency Trustee (the “Trustee”).
Sayer Energy Advisors has been engaged to assist the Trustee with the sale of certain of Sequoia’s oil and natural gas properties.
The properties are located in the Bruce, Hazelbluff and Camrose/Big Bend areas of Alberta (the “Properties”).
As per an order from the Alberta Energy Regulator, Sequoia’s licensed Properties have been shut-in since March 2018. As a result, all production numbers stated herein reflect the production capability of the various wells or properties prior to the shut-in. The production capability net to Sequoia from the Properties at that time averaged 837 boe/d, consisting of approximately 4.7 MMcf/d of raw natural gas and 55 barrels of oil per day.
In the Bruce area, Sequoia holds high working interests (mainly 100%) in a large land base. Production from the Bruce area mainly comes from the Ellerslie, Viking and Glauconitic formations.
In the Hazelbluff area, Sequoia holds high working interests in a significant land position consisting of approximately 156 sections of land, holding mainly 100% working interests in the property. Production is mainly from the Viking Formation; the primary productive zones are a Viking marine bar sand and the Viking A zone. There is also natural gas potential in the lower Viking zones.
Sequoia holds mainly a 100% working interest in the land and production at Camrose/Big Bend. Some of Sequoia’s land at Camrose/Big Bend is located in the heart of the rapidly growing Clearwater play, where companies are exploiting this widespread oil reservoir with multi-lateral horizontal wells. Operators such as Spur Petroleum Ltd. and Crestwynd Exploration Ltd. are developing the Clearwater with as many as eight laterals per well.
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, June 20, 2019.
For further information please feel free to contact: Ryan Ferguson Young, Ben Rye, Tom Pavic, 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