To attain a royalty-only business model, 1445640 Alberta Ltd. is seeking to divest of its remaining working interest property, located in an extension of the large Peejay Halfway pool in NE B.C. The company holds a 23.834% non-operated working interest in a Halfway oil producer located at c-100-H/94-A-15, with bottom hole located at 02/d-91-G/94-A-15/00.
Operated by Canadian Natural Resources, this producing well is located near the northwestern edge of the Halfway oil pool. The extension to the pool was developed during the mid-1990s. The well exhibits little or no production decline since 2014, when production peaked.
Production from the well has been steady for several years, averaging 6.2 m3 oil/day (40 barrels of oil per day) with both low water cut and a low gas/oil ratio. Cumulative production from the well has been over 282,000 barrels of oil. Current production is steady at 36 barrels of oil per day.
Net operating income from the producing well has averaged $11,000 per month for the 18-month period covering 2018 and the first half of 2019, net to the 23.834% interest.
Additionally, the company holds a 23.834% non-operated working interest in an undeveloped, continued unit of land, containing petroleum and natural gas rights from surface to the base of the Artex/Halfway/Doig formation; and a 23.834% non-operated working interest in a second suspended oil well at 00/c-001-J/94-A-15/00, together with the associated petroleum and natural gas rights to the base of the Artex/Halfway/Doig formation.
| WELL | STATUS | POOL | AVG PRODUCTION |
| 202/d-091-G/94-A-15 (BH) | Producing – Oil | Halfway | 6.2 M3 Oil/Day |
| 200/c-001-J/94-A-15/00 | Suspended – Oil | Halfway | – |
Trimble Engineering Associates Ltd. has prepared an independent reserve appraisal, effective September 30, 2019, using Trimble’s October 1, 2019 forecast pricing. Trimble estimates that proved plus probable reserves total 20 thousand barrels of oil, net to the working interest before royalty, with a 16-year reserve life.
Trimble assigns a discounted NPV of $548,700 to the working interest, before tax, on proved plus probable remaining reserves, using a 10% discount factor and Trimble’s October 1, 2019 forecast pricing.
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Interested parties may contact the company to sign a confidentiality agreement and obtain access to review further data in the available virtual data room.
| David Laws, President | Lenni Werner-Schmidt, Land Manager |
|---|---|
| 403-861-1851 | 403-510-5477 |
| david.laws16@gmail.com | lwernerschmidt@telus.net |
