Sayer Energy Advisors has been engaged to assist Ascensun Oil and Gas Ltd. (“Ascensun” or the “Company”) with the sale of its oil and natural gas interests located in the Grand Forks, Leduc and Southern Alberta Minor areas of Alberta (the “Properties”).
The Company’s low decline oil production is from the Grand Forks area, where Ascensun holds mainly 100% working interests in several oil pools producing from the Glauconitic Sandstone, Sawtooth, Lower Mannville and Sunburst formations.
Average daily production net to Ascensun from the Properties for November 2021 was approximately 185 barrels of oil and natural gas liquids per day and trace volumes of natural gas (185 boe/d).
Net operating income from the Properties for November 2021 was approximately $152,000 or $1.8 million on an annualized basis.
At Leduc, Ascensun has a 100% working interest in three sections of land prospective for the oil in the Nisku Formation.
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end evaluation (the “Trimble Report”). The Trimble Report is effective December 31, 2020 using Trimble’s January 1, 2021 forecast pricing. Trimble estimates that, as of December 31, 2020, the Properties contained remaining proved plus probable reserves of 3.2 million barrels of oil and natural gas liquids and 1.2 Bcf of natural gas (3.4 million boe), with an estimated net present value of $27.5 million using forecast pricing at a 10% discount.
The Company’s preference would be to sell the Properties in one transaction with the exception of the Leduc property, which could be sold separately.
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, March 3, 2022.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.