Cor4 Oil Corp. (“Cor4” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of certain long-life, shallow natural gas assets located in southern Alberta (the “Properties”). The Properties consist of both operated and non-operated interests located in the Jenner, Dinosaur/Patricia, Cessford and Medicine Hat areas, as well as certain miscellaneous interests grouped in a package named Southern Alberta Minors.
Cor4’s net sales production from the Properties for July 2020 was approximately 4.7 MMcf/d of natural gas (790 boe/d).
The Properties have not been a priority for Cor4 and have been capital deprived since 2015, with base declines greater than similar offsetting operations. After a detailed review of the Properties, the Cor4 team has identified numerous optimization and development initiatives that will increase production and extend the life of the assets.
At Jenner, Cor4 holds an average 88% working interest in a large producing shallow natural gas property The Jenner natural gas property is mostly Crown and includes all of Cor4’s rights to the base of the Second White Speckled Shale Formation.
Cor4 net sales production from the Jenner shallow natural gas property for July 2020 was approximately 3.0 MMcf/d (495 boe/d). Annualized base declines for Cor4’s operated shallow natural gas wells at Jenner since 2015 have been 11.5% compared to 5% for similar offsetting operators. International Petroleum Corp. operated wellbores immediately south of Cor4 have been further optimized with coil clean-outs, soap string pulls and continuous swabbing programs, resulting in production growth with minimal capital costs and zero new wellbores or completions.
Using offset operator results as well as Cor4’s recent focus on swabbing, Cor4 has identified numerous optimization and development initiatives that will increase production and extend the life of the assets. Coil tubing mud clean-outs, soap string removals and a continuous swabbing program have the potential to economically increase gas production at Jenner by 370 boe/d (2.2 MMcf/d), when all 695 active wellbores are considered.
Further details regarding the marketing process can be found on our website at www.sayeradvisors.com. Summary information relating to this divestiture is attached to this correspondence. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
Cash offers relating to this opportunity will be accepted until 12:00 pm on Thursday November 12, 2020.
For further information relating to this process please feel free to contact: Ben Rye, Grazina Palmer or Tom Pavic at 403.266.6133.