On November 18, 2019, Hardie & Kelly Inc. was appointed receiver and manager (the “Receiver”) of Wolf Coulee Resources Inc. (“Wolf Coulee” or the “Company”). The Receiver has engaged Sayer Energy Advisors (“Sayer”) to assist with the sale of Wolf Coulee’s oil and natural gas 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 offering presents an opportunity to acquire operated, high working interest, long life, concentrated assets located in the Retlaw area as well as interests adjacent to Retlaw at Badger, Hector and Little Bow. The Company also has minor working interest production in the Lloydminster, Mikwan, Gilby and Stettler areas of Alberta and minor non-producing properties located in the David/Chauvin, Bow Island, Grand Forks, Bindloss, Chinook, Heathdale, Strathmore, Nevis, Glen Park, Volmer, Sibbald and Marten Hills areas of Alberta and in the Douglaston area of Saskatchewan (the “Properties”).
In May 2019, production net to the Company averaged 581 boe/d (2.8 MMcf/d of natural gas, 96 bbl/d of oil and 26 bbl/d of natural gas liquids). Due to declining natural gas prices, the Company shut-in natural gas production in June 2019.
InSite Petroleum Consultants Ltd. (“InSite”) prepared an independent reserves evaluation of Wolf Coulee’s properties (the “InSite Report”). The InSite Report is effective July 1, 2017 using InSite’s June 30, 2017 forecast pricing. InSite estimates that, as of July 1, 2017, Wolf Coulee’s properties contained remaining proved plus probable reserves of 1.7 million barrels of oil and natural gas liquids and 43.2 Bcf of natural gas (8.9 million boe), with an estimated net present value of $40.6 million using forecast pricing at a 10% discount.
As of January 4, 2020, Wolf Coulee had net deemed asset value of ($3,952,205) (deemed assets of $12,425,671 and deemed liabilities of ($16,377,874)) with an LMR of 0.76.
The Receiver has instructed that interested parties must execute a marked-up copy of the purchase and sale agreement (the “PSA”) accompanying any offers submitted for the Properties. A copy of the PSA will be available for review to parties which execute a confidentiality agreement. The Receiver has also provided a Sale Solicitation Process document (the “SSP”) outlining the details of the receivership sale. All offers received at the bid deadline will be reviewed by the Receiver and the most acceptable offers may be accepted by the Receiver, subject to Court approval.
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.
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, March 5, 2020.
For further information please feel free to contact: Tom Pavic, Ben Rye, Grazina Palmer or Alan Tambosso at 403.266.6133.