Long Run Exploration Ltd. (“Long Run” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of its non-core oil and natural gas properties located in the Taber, Oyen, Drumheller, Wimborne, Provost, Three Hills, Killam, Bashaw, Plain Lake, Lindbrook, Bremner, Partridge and Highvale areas of central Alberta, as well as additional minor properties located throughout Alberta (the “Properties”).
Total current production net to Long Run from the Properties is approximately 883 boe/d, consisting of 4.7 MMcf/d of natural gas and 91 barrels of oil and natural gas liquids per day.
In addition, Long Run owns a small number of Fee Titles within the Killam and Partridge areas which are available for lease from Long Run. The Company may entertain separate offers for the Fee Titles.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of Long Run’s properties as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report is effective December 31, 2018 using Sproule Associates Limited’s January 1, 2019 forecast pricing.
McDaniel estimates that, as of December 31, 2018, the Properties contained remaining proved plus probable reserves of 13.1 Bcf of natural gas and 1.2 million barrels of oil and natural gas liquids (3.4 million boe), with an estimated net present value of $13.8 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).
Cash offers relating to acquire the Properties will be accepted until 12:00 pm on Thursday, August 15, 2019.
For further information please feel free to contact: 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