Cuda Oil and Gas Inc. (Alberta Assets) – Receivership

ARCO Capital Partners Inc. (“ARCO”) has been engaged to assist FTI Consulting Canada Inc., in its capacity as Court appointed receiver (the “Receiver”) of Cuda Oil and Gas Inc. (“Cuda” or “Company”), with the sale of Company’s oil and natural gas assets located in southern Alberta (the “Properties”). The Receiver’s preference is to conclude the sale of Properties through a transfer of Company’s assets or through a corporate transaction with Cuda’s wholly-owned Canadian subsidiary, Cuda Energy Inc. (“CEI”).

Offering and Property highlights:

• 250 BOE/d in October 2021, consisting of 1.4 MMcf/d of sales gas and 17 bbl/d of NGLs from three producing gas wells in Hussar and Retlaw
• 100% working interest and operated production base
• Net operating income of $0.56 MM for October 2021 YTD ($10/BOE) based on average production of 180 BOE/d
• Proved Developed reserves of 287 Mboe with NPV10 (BT) of $2.2 MM
• LMR of 5.95x based on deemed assets of $4.4 MM and liabilities of $0.7 MM
• Six gas recompletion prospects with 4.6 Bcf of unrisked potential at $0.67 MM capital cost
• $28 MM of non-capital losses that may form part of a corporate transaction with CEI

The deadline for non-binding proposals is January 27, 2022, but such date may be subject to change by the Receiver.

Further details on the process can be found in the Information Memorandum or by contacting ARCO directly at www.arcocapital.ca.