Sayer Energy Advisors has been engaged to assist a senior oil and natural gas exploration and production company (the “Company”) with the sale of certain non-core oil and natural gas properties located in the Thorsby, Sundance, Knopcik/Elmworth and Greater Boundary Lake areas of Alberta (the “Properties”). The Properties consist of non-operated and operated working interests and royalty interests.
Production net to the Company from the Properties in the first half of 2019 averaged approximately 869 boe/d (264 bbl/d of oil and natural gas liquids, 3.6 MMcf/d of natural gas).
Net operating income from Properties totaled approximately $440,000 in the first half of 2019.
At Thorsby, the Company holds various working interests and royalty interests, including interests in the long life, low-decline Pembina Belly River “B” North Unit, Pembina Belly River “C” Unit, Pembina Belly River “L” Unit, Pembina Keystone Belly River “C” East Unit, Pembina Keystone Cardium Unit No 3 and Warburg Belly River “M” Unit all of which are operated by Sinopec Daylight Energy Ltd.
In the Sundance area, the Company has various working interests and royalty interests in 83.75 sections of land with long life, low-decline natural gas production from the Cardium Formation. Non-operated lands have been actively drilled by third party operators over the last several years.
At Knopcik/Elmworth, the Company holds various operated and non-operated working interests as well as royalty interests in 220 sections of land.
In the Greater Boundary Lake area, the Company has various operated and non-operated working interests as well as royalty interests in 48.75 sections of land.
The Company prepared an internal reserves evaluation of the Properties specifically for this divestiture (the “Reserve Report”). The Reserve Report was audited by Sproule Associates Limited (“Sproule”). The Reserve Report is effective March 31, 2019 using Sproule’s March 31, 2019 forecast pricing.
The Company estimates that, as of March 31, 2019, the Properties contained remaining proved plus probable reserves of 7.1 Bcf of natural gas and 426,000 barrels of oil and natural gas liquids (1.6 million boe), with an estimated net present value of $7.5 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 this divestiture will be accepted until 12:00 pm on Thursday, December 19, 2019.
For further information please feel free to contact: Ben Rye, Tom Pavic, Grazina Palmer or Alan Tambosso at 403.266.6133.