Burgess Creek Exploration Inc. (“Burgess Creek” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of certain non-core operated oil and associated natural gas interests located in the Sherwood, Elcott, Rosebank, Queensdale, Manor and Redvers areas of southeastern Saskatchewan and the Dollard area of southwestern Saskatchewan as well as certain non-operated interests in the Queensdale East and Northgate areas of southeastern Saskatchewan (the “Properties”).
The Properties consist primarily of low-decline, light oil production with associated natural gas.
Average daily production net to Burgess Creek from the Properties for the month of December 2021 was approximately 150 barrels of oil and natural gas liquids per day and 62 Mcf/d of associated natural gas (160 boe/d).
Consolidated net operating income derived from the Properties in December 2021 was approximately $182,000, or $2.2 million on an annualized basis.
Burgess Creek has regularly maintained the Properties and is in compliance with all regulatory requirements.
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Properties as at December 31, 2020 (the “GLJ Report”). As part of the Company’s year-end evaluation, Burgess Creek internally updated the GLJ Report using December 2021 production and GLJ’s price forecast at January 1, 2022 (the “Reserve Report”). The Reserve Report is effective January 1, 2022 using GLJ’s January 1, 2022 forecast pricing. The Company estimates that, as of January 1, 2022, the Properties contained remaining proved plus probable reserves of 2.6 million barrels of oil and natural gas liquids and 720 MMcf of natural gas (2.7 million boe), with an estimated net present value of $38.8 million using forecast pricing at a 10% discount.
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, April 7, 2022.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.