Sun Century Petroleum Corporation has retained CB Securities Inc. as its advisor for the sale of their oil and natural gas company.
Non-Binding Bids for Sun Century are due on Wednesday, December 14, 2022.
Company highlights include:
- 1,030 BOE/day (4.8 MMcf/day of sales gas, 115 Bbls/day of oil, and 115 Bbls/day of NGL’s)
- Operated properties with very high working interests (mostly 100%)
- Owned facilities in 2 core areas of Delburne (Mikwan) and Provost
- Long life reserves with many wells exhibiting <5% annual declines
- ~$9 million of annualized Net Operating Income based on more recent monthly cash flows
- Proved Producing / Proved Producing plus Probable Producing evaluation highlights
- 10% Net Present Values of $27 to $35 million
- ARO for wells is included
- Excludes most of the $650 thousand annual Other Income related to facility ownership
- Remaining oil and NGL reserves of 0.64 to 0.93 MMBbls
- Remaining sales gas reserves of 11.8 to 17.2 Bcf
- 8 to 11 year producing RLI’s
- $12.50/BOE OPEX, 11% royalties
- Mostly liquids-rich gas with high heat content
- 10% Net Present Values of $27 to $35 million
- Wabamun Liquids-Rich Gas Upside
- Undeveloped NPV’s of $16 to $21 million for 7 Wabamun dual leg horizontal locations with recoverable gas reserves of 7.5 to 10 Bcf, and 250 to 335 MBbls of natural gas liquids
- Numerous additional locations for exploitation on current interest lands, and available Crown lands that can be repurchased to increase the inventory of locations
- Recoverable reserves of 2.55 Bcf (plus 33 Bbls/MMcf of natural gas liquids) per section
- Capital to drill, complete, equip, and tie-in a dual leg horizontal well is expected to average $1.75 million
- At $4.50/GJ AECO and US$80/Bbl WTI, Payout in 10 months, 5.2 Recycle Ratio, the Internal Rate of Return is 131%, Finding and Development Costs are $5.74/BOE, and production is added for ~$5,000/BOE/day (IP30)
- Sparky Oil Upside
- 100% interest plays in 2 under-developed Upper Mannville Sparky oil pools
- >8 horizontal locations on 200 metre spacing in Provost Bodo
- 7 horizontal locations on 200 metre spacing in Macklin
- Undeveloped NPV of $4 to $5 million for 1 Sparky horizontal
- Capital to drill, complete, equip, and tie-in a horizontal well is ~$0.75 million
- Other Upsides
- Macklin: McLaren oil re-completion in existing Macklin well with recent tie-in
- Nevis: Basal Quartz re-completion for 700 Mcf/day & 65 Bbls/day of NGL’s ($240k CAPEX)
- Nevis: Potential to develop the Wabamun with horizontals
- Rimbey: Proved undeveloped Falher hz location for 7.4 MMcf/day & 625 Bbls/day of NGL’s
- Westlock: Proved undeveloped Ostracod hz location for 75 Bbls/day (~$2MM NPV incl. $0.85MM CAPEX)
- Provost Monitor: 8 Viking hz locations for 75+ Bbls/day & 35+ MBbls light oil each
More details are available in the non-confidential Offering Circular and can be emailed upon request.
Please contact Darryl Derouin at 403.781.7041, Ieva Lipskyte at 403.781.7043, or email info@cbsecurities.com for additional information.