Rex Energy Ltd. (“Rex” or the “Company”) has engaged Sayer Energy Advisors to assist it with a strategic alternatives process. The Company is open to reviewing all alternatives including, but not limited to, a sale of the shares of the Company, a sale of the assets of the Company, or a sale of a portion of the shares outstanding.
Rex is a wholly-owned subsidiary of publicly-traded Whitebark Energy Limited, which trades on the Australian Stock Exchange under the ticker symbol (ASX: WBE), with operated working interests located in the Wizard Lake area of Alberta (the “Property”).
Average daily sales production net to Rex from the Property for the first half of 2023 was approximately 147 boe/d, consisting of 89 bbl/d of oil and natural gas liquids and 350 Mcf/d of natural gas. Average daily production was affected by Rex’s most prolific producing well at 103/12-04-048-27W4/0 being down for most of the second quarter of 2023.
Operating income net to Rex from Wizard Lake for the first half of 2023 averaged approximately $45,000 per month, or $540,000 on an annualized basis.
Rex has approximately $1.25 million of debt and total unused Canadian income tax pools of approximately $27.4 million, including $15.3 million of non-capital losses. The Company has a cash bond of approximately $180,000 with Leduc County.
As of October 7, 2023, Rex had total net deemed assets of $3.0 million, (deemed assets of $3.8 million and net deemed liabilities of $782,265), with an LMR ratio of 4.82.
InSite Petroleum Consultants Ltd. (“InSite”) prepared an independent reserves evaluation of the Property (the “InSite Report”). The InSite Report is effective June 30, 2023 using InSite’s June 30, 2023 forecast pricing. InSite estimated that, as of June 30, 2023, the Property contained remaining proved plus probable reserves of 1.1 million barrels of oil and natural gas liquids and 7.8 Bcf of natural gas (2.4 million boe), with an estimated net present value of $15.4 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).
Proposals relating to this process will be accepted until 12:00 pm on Thursday, November 30, 2023.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.