On October 29, 2019, Hardie & Kelly Inc. was appointed receiver and manager (the “Receiver”) of Houston Oil & Gas Ltd. (“Houston” or the “Company”). The Receiver has engaged Sayer Energy Advisors to assist with the sale of all of the Company’s remaining oil and natural gas properties which are located in southern and central Alberta (the “Properties”).
The Receiver was appointed by the Court pursuant to the application made by the Orphan Well Association and intends to divest the Properties, in whole or in part.
The Properties consist of generally high working interest natural gas assets. The Company’s wells have been grouped into various packages based on operations where applicable.
Additional wells which do not fall into these packages have been grouped under a miscellaneous category. Note that in cases where only one well event is shown for a well with multiple legs, multiple UWIs or multiple well events under one license, all wells with the same license number are available.
The Company began shutting in its operated production in August, 2019, prior to ceasing operations. Production information stated in the marketing materials is field level production (gross) from the Properties, prior to the Properties being shut-in, current as of July 31, 2019, unless otherwise stated.
Gross field level production from the Properties in July 2019, prior to the Company beginning the systematic production shut-ins was approximately 22.7 MMcf/d of natural gas and 196 barrels of oil per day (3,990 boe/d).
The Company does not have a third-party reserve evaluation for the Properties.
Information on the Company’s facilities and infrastructure is available in the data room for parties that execute a Confidentiality Agreement.
As of January 4, 2020, Houston had net deemed asset value of ($31,872,897) (deemed assets of $49,663,226 and deemed liabilities of ($81,536,123)) with an LMR of 0.61.
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).
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, February 27, 2020.
For further information please feel free to contact: Ben Rye, Tom Pavic, Grazina Palmer or Alan Tambosso at 403.266.6133.