ARCO Capital Partners Inc. (“ARCO”) has been engaged to assist Grant Thornton Limited, in its capacity as Court appointed receiver (the “Receiver”) of Elcano Exploration Inc., Elcano Exploration Ltd. and Elcano Energy Partnership (collectively, “Elcano” or “Company”), with the sale of Company’s light oil producing assets in Manitoba and non-producing interests in Alberta (the “Assets”) through a sale and investment solicitation process (the “SISP”) which was filed for approval on December 20, 2021.
Company and Asset highlights:
- Consolidated working interest in North Hargrave and Miniota fields of southwest Manitoba
- Light oil production of ~135 bbl/d from shallow 550 to 650 metre Lodgepole and Amaranth Formations (27o – 30o API)
- Q4 2021E net operating income of $0.5 MM (~$40/bbl netback)
- 24 MMbbl OOIP with 11% recovered to date vs 21% assigned by Sproule (P+P case; 28 locations)
- Opportunity to optimize existing waterflood and improve sweep efficiencies and recovery
- $3.4 MM of undiscounted future decommissioning obligation in Manitoba
- 23 non-producing (22 abandoned) wells in Halkirk, Alberta with deemed liability of $0.47 MM and $0.25 MM deposit with the AER
- $33.3 MM in tax pools as of December 31, 2020, including $16.0 MM of NCLs
The deadline for non-binding proposals is January 28, 2022, but such date may be subject to change by the Receiver.