Avalon Energy Ltd. (“Avalon” or the “Company”) has engaged Sayer Energy Advisors (“Sayer”) to assist it with the sale of the shares of the Company.
Avalon is a private company with a 30 year history of operating oil and natural gas properties in western Canada.
The Company’s oil and natural gas assets (the “Properties”), which are all Avalon-operated oil properties, are located in the Murray Lake, Hays, Knappen, Bow Island, Long Coulee, Pageant and Majorville areas of southern Alberta
The majority of the Company’s production and value is associated with its oil properties in the Murray Lake and Hays areas of southern Alberta. The Company’s total production has recently averaged approximately 108 barrels of oil equivalent per day (102 barrels of oil per day and 35 Mcf/d of natural gas).
Please note that Avalon has an internal partner in all of its Properties, with the exception of Murray Lake. The partner’s interests, which are being included in this offering, are reflected in the mineral property report, the well list, the independent reserve report and in the lease operating statements. Avalon’s financial statements include only Avalon’s interests.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of Avalon’s Murray Lake and Hays properties specifically for this divestiture (the “McDaniel Report”). The McDaniel Report is effective April 1, 2019, using McDaniel’s April 1, 2019 forecast pricing.
McDaniel estimates that as of April 1, 2019 the Murray Lake and Hays properties contained remaining proved plus probable reserves of 172,000 barrels of oil, with an estimated net present value of approximately $3.3 million using forecast pricing at a 10% discount. The remaining Properties were not evaluated by McDaniel.
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Sayer Energy Advisors is accepting proposals relating to this process until 12:00 pm on Thursday, October 17, 2019.
Parties wishing to receive a Confidential Information Binder with detailed technical information relating to this opportunity should execute the Confidentiality Agreement which is available on Sayer Energy Advisors’ website (www.sayeradvisors.com) and return one copy to Sayer Energy Advisors by courier, email (brye@sayeradvisors.com) or fax (403.266.4467). Included in the Confidential Information Binder is the following: summary land information, most recent net operations summary, the McDaniel Report, LLR information and other relevant technical and corporate information. To receive further information on the Company please contact Ben Rye, Tom Pavic, Grazina Palmer or Alan Tambosso at 403.266.6133.