Sayer Energy Advisors has been engaged to assist Sojourn Energy Inc. (“Sojourn” or the “Company”) with the sale of its non-core properties in the Plover Lake, Furness and Dulwich areas of southwestern Saskatchewan (the “Properties”). Sojourn is considering the sale of these Properties in order to allow the Company to focus on accelerating growth in its core areas.
Total production from the Properties throughout the summer has averaged approximately 251 barrels of oil per day. Each property contains significant development potential.
As of October 1, 2019, the combined LLR for the Properties was 16.10, with net deemed assets of $8.6 million ($9.2 million deemed assets and $570,150 deemed liabilities).
At Plover Lake, Sojourn’s recent production from the Company’s first McLaren oil well has been averaging approximately 61 barrels of oil per day. The Company recently drilled a second McLaren oil well and it has identified two additional McLaren locations.
Sojourn holds a 100% working interest in three producing General Petroleum (“GP”) oil wells at Furness. Recent production from the three wells has averaged approximately 50 barrels of oil per day. Additional production increases are possible by initiating a pressure maintenance program and through minor remedial operations. The Company has identified additional drilling locations within the GP Formation on its land.
At Dulwich, Sojourn holds a 100% working interest in three producing GP and Sparky oil wells, which produce approximately 140 barrels of oil per day with a low watercut of approximately 5%. Sojourn has identified up to five drilling locations in the Sparky Formation and up to six drilling locations in the GP Formation reservoir. Northwest of its producing property at Dulwich, Sojourn holds a 100% working interest in land where there is potential to develop a significant GP pool on and around its land.
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Sojourn’s properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective May 31, 2019 using Trimble’s April 1, 2019 forecast pricing. Trimble estimates that, as of May 31, 2019, the Properties contained remaining proved plus probable reserves of 2.4 million barrels of oil, with an estimated net present value of $44.1 million using forecast pricing at a 10% discount. As of May 31, 2019, the Properties contained remaining proved developed producing reserves of 514,000 barrels of oil, with an estimated net present value of $10.8 million using forecast pricing at a 10% discount.
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).
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, November 28, 2019.
For further information please feel free to contact: Ben Rye, Tom Pavic, Grazina Palmer or Alan Tambosso at 403.266.6133.