On February 28, 2022, MNP Ltd. was appointed as the receiver (the “Receiver”) of Abbey Resources Corporation (“Abbey” or the “Company”) pursuant to an Order of the Court of Queen’s Bench of Saskatchewan (as at then was). The Receiver has engaged Sayer Energy Advisors to assist it with a sale of all of Abbey’s oil and natural gas properties located in Saskatchewan (the “Properties”). The Receiver has also provided a Sales Solicitation Process document (the “SSP”) outlining the details of the receivership sale.
The Properties are located in the Greater Abbey area of southwestern Saskatchewan. The Properties are situated on Carry the Kettle First Nation, Crown and freehold lands.
The Properties in the Greater Abbey area are comprised of distinct operational areas in the Lacadena South, Shackleton, Abbey, Lacadena North, Cramersburg, Miry Bay, and Snipe Lake areas.
The Properties provide low-decline shallow natural gas production primarily from the late Cretaceous Milk River, Medicine Hat and Colorado formations.
Average daily production net to Abbey from the Properties for the month of August 2022 was approximately 5.7 MMcf/d of natural gas (944 boe/d).
Operating income net to Abbey from the Properties for the month of August of 2022 was approximately $401,000 per month, or $4.8 million on an annualized basis.
As of September 28, 2022, Abbey’s net deemed asset value for the Properties was ($48.4 million) (deemed assets of $31.0 million and deemed liabilities of $79.4 million), with an LMR ratio of 0.39. The Company currently has a $27.7 million deposit in place with the Saskatchewan Ministry of Energy and Resources which is not included in the previously stated numbers. There is an outstanding security balance owing of approximately $20.7 million.
Further details regarding the SSP and marketing process can be found on our website at www.sayeradvisors.com. Summary information relating to this divestiture is attached to this correspondence. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
Offers relating to this divestiture will be accepted as outlined in the SSP until 12:00 pm on Thursday, December 15, 2022.
For further information please feel free to contact: Ben Rye, Grazina Palmer or Tom Pavic at 403.266.6133.