The Estate of JC Snyder (the “Estate”) has engaged Sayer Energy Advisors to assist it with the sale of the shares of Saskatoon Leaseholds Limited (“Saskatoon Leaseholds” or the “Company”).
The Company’s assets consist primarily of Fee Title interests (“Fee Title”), Gross Overriding Royalty (“GORR”) interests, as well as Gross Royalty Trust Certificates (“GRTCs”) in a number of areas of Alberta, Saskatchewan, Manitoba as well as Montana, USA and minor non-operated working interests in Alberta and Saskatchewan (the “Properties”).
The Properties include 57,020 gross acres of undeveloped Fee Title land, GORR interests and GRTCs. In addition, the Company also holds 3,100 acres of Crown land and minor non-operated working interests in nine wells located in Alberta and Saskatchewan.
As of June 30, 2022, Saskatoon Leaseholds had no bank debt and $5.0 million in cash and positive working capital.
The Company has an office lease, which terminates March 31, 2023. Rent is approximately $3,600 per month. Other than the office lease there are no other liabilities associated with the Company.
Royalty income net to Saskatoon Leaseholds for the six months ended June 30, 2022 was approximately $723,000, or $1.45 million on an annualized basis. The majority of the royalty income is from Saskatchewan with approximately $642,000 of the $723,000 total royalty income from Saskatoon Leaseholds’ interests in Saskatchewan.
Royalty production net to the Company for the six months ended June 30, 2022 averaged approximately 38 boe/d (31 barrels of oil per day and 42 Mcf/d of natural gas).
The proceeds from the sale of the shares of the Company will be donated by the Estate to the University of Calgary.
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, November 3, 2022.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.