Chair Resources Inc. and Chair Holdings Limited (collectively “Chair” or the “Company”) has engaged Sayer Energy Advisors (“Sayer”) to assist it with the sale of all of the assets of the Company which are located throughout western Canada.
The Company’s oil and natural gas assets consist of long-life, low-decline, non-operated oil and natural gas working interests and royalty interests in the Verger, Lloydminster, Swan Hills, Nipisi, Hangingstone/Portage and Fontas areas of Alberta and Saskatchewan (the “Properties”).
The Company share of production from the Properties was approximately 262 barrels of oil equivalent per day (1.5 MMcf/d of natural gas and 14 barrels of oil and natural gas liquids per day) in the first six months of 2021.
Details on the Company’s facilities and infrastructure is available in the data room for parties that execute a confidentiality agreement.
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Chair’s properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2019, using Trimble’s January 1, 2020 forecast pricing. The Trimble Report was updated for the Swan Hills and Verger properties (the “Updated Report”). The Updated Report is effective August 31, 2021, using Trimble’s July 1, 2021 forecast pricing.
Trimble estimates that as of December 31, 2019 and August 31, 2021, the Properties contained remaining proved plus probable reserves of 45,000 barrels of oil and natural gas liquids and 4.0 Bcf of natural gas (710,000 boe), with an estimated net present value of approximately $959,000 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).
Cash offers relating to this divestiture will be accepted until 12 p.m. on Thursday, October 28, 2021.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.