FTI Consulting Canada Inc., in its capacity as Court appointed Receiver of Eagle Energy Inc., Eagle Energy Holdings Inc. and Eagle Energy Trust, has retained CB Securities Inc. as its advisor for the sale of the oil and gas properties held by the Companies. Non-Binding Phase 1 Bids Due by noon on March 27, 2020.
Dixonville Highlights
- 1,600 Bbls/day (800 Bbls/day net) of 30° API oil
- Large OOIP of 108 MMBbls in 5 sands that make up the Montney C pool
- Pool is ~16 sections in size
- Developed with 194 horizontal and 2 vertical wells
- 91 currently producing oil
- 18 Bbls/day average well rate
- 82 injecting water
- Cumulative recovery factor of 11.2% (12.2 MMBbls)
- Proved Producing ultimate recovery factor of 22% (24.3 MMBbls)
- Proved plus Probable Producing ultimate recovery factor of 27% (29.8 MMBbls)
- Decline in the order of 5% to 7%
- >20 year producing reserve life indices
- 2.82 LMR in January 2020
- $64.6 million of deemed assets and $22.9 million of deemed ARO liabilities at 100% WI
- Most of the net ARO liabilities are in the McDaniel’s engineering evaluation
- Annual Net Operating Income of >$7.0 million based on forecast prices
- Netbacks of ~$9,000/Bbl/day
- $26.50/Bbl operating expenses and 19% royalties
- Oil prices received average Edmonton Light less $13.10/Bbl
- Significant and Relevant Remaining Upside
- Potential for re-drills of existing wells and kick-offs from the heel of existing wells
- 3 of the 6 development phases are not being adequately drained with recovery factors well below the other 3 development phases
- ~$800 thousand gross CAPEX to drill a cased horizontal
- 32 existing underperforming horizontal wells identified with <6% cumulative recovery factors, including 13 suspended horizontal wells
- 20 potential infill and step out locations
- Potential for re-drills of existing wells and kick-offs from the heel of existing wells
- 18 wells are identified for conversion from progressive cavity to insert rod pumps to increase uptime and reduce annual operating costs by ~$80,000/well with a ~1.1 year payout
- 8 wells identified for conversion to electric submersible pumps
- Conversion from propane that makes up $1.2 million of the total $7.6 million annual net operating costs (~$3/Bbl cost savings with payouts ranging from 1.3 to 3.2 years)
Royalty & Minor Working Interests Highlights
- 208 BOE/day of net production
- 46 Bbls/day of net oil / condensate
- 764 Mcf/day of net sales gas
- 36 Bbls/day of net NGLs
- 54 royalty interest wells and 9 non-operated working interest wells
- Shallow declines mostly from horizontal development in 2011 through 2014
- Cardium, Montney, Sawtooth, and Falher are main production zones
- $1.26 million of annualized Net Operating Income based on recent Q4 2019 statements
More information on each property is available at www.cbsecurities.com or by emailing info@cbsecurities.com
