• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Oil Market Data
    • Canada NG Market Data
    • USA Market Data
    • Data Downloads
  • Jobs

Property Divestiture: GS E&R Canada Inc.

April 12, 20217:46 AM BOE Report Staff

GSER has filed an application for among other relief, an order approving a proposed sales and investment solicitation process (the “SISP”), which is to be managed by the Proposal Trustee with the assistance of Sayer Energy Advisors (“Sayer”). The Proposal Trustee has engaged Sayer to assist the Proposal Trustee with the sale of all of GSER’s oil and natural gas interests in the Maxhamish area of British Columbia (the “Property”).  A copy of the SISP is found on Sayer’s website at www.sayeradvisors.com.

In the Maxhamish area of northeastern British Columbia, the Company holds mainly a 100% working interest in over 114,000 gross acres of land with wells producing natural gas from the Chinkeh “A” Pool.

Production net to GSER from Maxhamish in November 2020 was approximately 946 boe/d (5.5 MMcf/d of natural gas and 33 barrels of natural gas liquids per day) from the Chinkeh Formation.

The Company’s net operating income from Maxhamish in November 2020 was approximately $254,000 or $3.0 million on an annualized basis.

As of March 12, 2021, GSER had total deemed assets of $20.1 million, deemed liabilities of $24.4 million (net deemed assets of ($4.3 million)) with an LMR of 0.83.  The Company’s asset value and LMR ratio include a deposit of $3,887,258 in place with the British Columbia Oil and Gas Commission.

Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of the Property as part of the Company’s year-end reporting (the “Sproule Report”).  The Sproule Report is effective December 31, 2019 using Sproule’s October 31, 2019 forecast pricing.

Sproule estimated that, as of December 31, 2019, the Maxhamish property contained remaining proved plus probable reserves of 14.2 Bcf of natural gas and 751,000 barrels of natural gas liquids (3.1 million boe), with an estimated net present value of $10.2 million using forecast pricing at a 10% discount.  The net present value of the Property’s proved developed producing reserves was estimated to be approximately $5.8 million using forecast pricing at a 10% discount.  In addition to the total proved plus probable reserves, Sproule assigned total possible reserves of approximately 47.1 Bcf of natural gas and 2.5 million barrels of natural gas liquids (10.4 million boe) with an estimated net present value of $12.2 million using forecast pricing at a 10% discount.

Offers relating to this divestiture as outlined in the SISP will be accepted until 12:00 pm on Thursday May 13, 2021.

For further information please feel free to contact: Ben Rye, Grazina Palmer or Tom Pavic at 403.266.6133.

Property Listings

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Higgs says New Brunswick LNG facility could help Europe cut energy ties with Russia
  • What slowdown? Canada’s economy to top G7 on high oil, crop prices
  • Canada in talks with Europe about east coast energy exports
  • Column: Oil market confronts U.S. and EU policymakers with unpalatable choices
  • Oil prices rise for fourth day on supply worries

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView

    Report Error





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2022 Grobes Media Inc.