On June 8, 2020, BDO Canada Limited was appointed as the receiver and manager (the “Receiver”) of Point Loma Resources Ltd. (“Point Loma” or the “Company”) pursuant to an Order of the Court of Queen’s Bench of Alberta. The Receiver has engaged Sayer Energy Advisors to assist it with a sale of all of Point Loma’s oil and natural gas properties located in Alberta (the “Properties”). The Receiver has also provided a Sale Solicitation Process document (the “SSP”) outlining the details of the receivership sale. A copy of the SSP is found on Sayer’s website at www.sayeradvisors.com.
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. 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.
The Properties consist of both operated and non-operated interests located throughout Alberta with Point Loma’s core properties located in the Greater Gilby, Wizard Lake, Paddle River, Leaman, Whitecourt, Pine Creek/Edson and Thornbury areas of west central Alberta, as well as certain miscellaneous interests in East Alberta and various areas in a package named Miscellaneous Alberta.
Point Loma ceased operations and shut-in operated production in May 2020. Prior to shut-in, average production net to Point Loma from the Properties for 2019 was approximately 625 boe/d, consisting of 2.5 MMcf/d of natural gas and 205 barrels of oil and natural gas liquids per day.
As of September 5, 2020, Point Loma’s net deemed asset value was ($2.1 million) (deemed assets of $20,918,486 and deemed liabilities of $23,052,350), with an LMR ratio of 0.91.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of Point Loma’s properties as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report is effective December 31, 2018, using McDaniel’s January 1, 2019 forecast pricing. McDaniel estimated that as of December 31, 2018 the Properties contained remaining proved plus probable reserves of 2.0 million barrels of oil and natural gas liquids and 19.3 Bcf of natural gas (5.2 million boe), with an estimated net present value of approximately $37.9 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).
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, November 26, 2020.
For further information please feel free to contact: Ben Rye, Grazina Palmer or Tom Pavic at 403.266.6133.
