Property Divestiture
BID DEADLINE: OCTOBER 25, 2023 AT 4:00 PM MST
Bering Exploration Company, ULC (“Bering”, or the “Company”) has retained Trimble Energy Group as its exclusive financial advisor and agent to assist with the marketing of its oil & natural gas properties located in the Sullivan Lake/Garden Plains area of east central Alberta, the Valhalla, Pouce Coupe South, and Mirage areas on the Peace River Arch and in Mitsue area of northern Alberta (the “Properties”).
DIVESTITURE OVERVIEW
- Recent production of 475 boe/d, consisting of 252 bbl/d of oil & condensate, 10 bbl/d of natural gas liquids and 1.3 MMcf/d of natural gas. In addition, at Sullivan Lake/Garden Plains, Bering has 334 boe/d (92 bbl/d of oil and 1.45 MMcf/d of natural gas) of completed volumes moving to production. At Pouce Coupe South, there is immediate reactivation and workover potential to bring online 2.26 MMcf/d of natural gas and 14 bbl/d of liquids or 391 boe/d net to Bering for estimated net capital costs of $475,000 or $1,214/boe/d.
- The majority of the production is attributed to Bering’s oil-weighted property in the Sullivan Lake/Garden Plains area with additional production, cash flow and reserves coming from its properties in Valhalla, Mirage-Gordondale and Pouce Coupe South on the Peace River Arch and its oil-weighted property at Mistue.
- High netback oil production, royalty revenues and road use income yielding net operating income of approximately $5.5 million over the last twelve months.
- Estimated PDP reserves of 741 Mboe, TP reserves of 2.0 MMboe and 2P reserves of 3.05 MMboe with before-tax NPVs of $18.4 million, $31.5 million and $45.0 million respectively at a 10% discount rate as of December 31, 2022, based on the estimates and price forecast of Deloitte LLP.
- Initial estimates of recovery factors at Bering’s Sullivan Lake property indicate primary recoveries of 22% via decline rate analysis and modelling with analogies. Use of these recovery factors would significantly increase Bering’s primary ultimate recoverable oil reserves.
- Strong LLR of 3.21 with a Net Deemed Asset value of $9.6 million.
- Booked and unbooked drilling upside in the Banff, Wabamun and Glauconitic formations on Bering’s Sullivan Lake/Garden Plains property, drilling upside and waterflood potential in the Doe Creek at Valhalla, and Dunvegan and Triassic drilling upside at Pouce Coupe South.
- Stable, low-decline production with a corporate operated oil decline rate of only 7%.
(1) Twelve months July 2022-June 2023
(2) Deloitte LLP as at December 31, 2022
(3) Based on current production
For more information visit Trimble Energy Group’s website at www.trimbleenergygroup.com or contact Ryan Ferguson Young, Executive Vice President of TEG at Ryan@trimbleenergygroup.com or (403) 615-2975.
