Ribbon Creek Resources Inc. and its wholly-owned subsidiary Mato Inc. (“Mato”) (collectively “Ribbon Creek” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of the shares of the Company.
Ribbon Creek is a highly focused junior oil and natural gas company producing clean light oil and solution natural gas from its operations in the Boundary Lake, Pembina and Sundre areas of Alberta (the “Properties”).
The Properties consist of predominantly operated interests in the Boundary Lake and Sundre areas as well as a 1.5249% working interest in the Pembina Keystone Cardium Unit No. 2 operated by Bonterra Energy Corp.
Over the first nine months of 2021, the Company’s average daily production consisted of approximately 76 barrels of oil and natural gas liquids per day and 327 Mcf/d of natural gas (131 boe/d).
The Company is forecasting net operating income on a proved developed producing basis to be $1,600,000 in 2022.
As at September 30, 2021, Ribbon Creek had no bank debt, positive working capital of $1.2 million and total tax pools of approximately $2.0 million. The Company’s proved developed producing reserves have an estimated net present value of $10.8 million and total proved reserves of $33.4 million based on the implementation of a waterflood at Boundary Lake, at a 10% discount. Several waterflood analogies exist in the area, including the Boundary Lake Triassic E Unit as well as the Boundary Lake Units 1 & 2 operated by Whitecap Resources Inc.
As of January 1, 2022, the Company had total deemed assets of $3.6 million, deemed liabilities of $2.0 million (net deemed assets of $1.6 million) with an LMR of 1.79.
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).
Proposals relating to this process will be accepted until 12:00 pm on Thursday, March 17, 2022.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.