1976218 Alberta Ltd. (“197” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its interest in the Armada Gas Plant and associated natural gas gathering system located in the Armada area of Alberta (the “Armada Facilities”).
At Armada, 197 holds a 49.9975% working interest in the Armada Facilities located at 01-18-017-18W4 and the associated natural gas gathering system. The Armada Facilities are operated by Canadian Natural Resources Limited which holds a 42.863% working interest. The remaining 7.1395% working interest is held by 1951629 Alberta Inc.
The Company’s net operating income from the Armada Facilities the ten months ended October 31, 2021 was approximately $96,000. The Company forecasts net operating income for 2022 to be approximately $131,000. The net operating income forecast is based on the operator’s 2022 budget forecast and does not include a potential 1.1 MMcf/d of additional natural gas throughput. The Company estimates additional net operating income from the potential volumes to be approximately $164,250 for 2022.
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 12:00 pm on Thursday, February 17, 2022.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.