Silverleaf Resources Inc. (“Silverleaf” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of all of its oil and natural gas interests located in the Chin Coulee, Claresholm, Edson, Gilby, Morley, Steele and Twining as well as certain minor areas of Alberta (the “Properties”).
Average daily production net to Silverleaf from the Properties for the months of July and August 2023 was approximately 488 boe/d, consisting of approximately 1.6 MMcf/d of natural gas and 225 bbl/d of oil and natural gas liquids.
Operating income net to Silverleaf from the Properties for the months of July and August 2023 averaged approximately $332,000 per month, or $4.0 million on an annualized basis.
Silverleaf has identified approximately 25 re-completion/ workover opportunities in existing producing wells on the Properties which is anticipated to add production of approximately 50 bbl/d of oil and 500 Mcf/d of natural gas.
As of October 7, 2023, the Properties had a deemed net asset value of $7.2 million (deemed assets of $12.3 million and deemed liabilities of $5.1 million), with an LMR ratio of 2.43.
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Properties (the “GLJ Report”). The GLJ Report is effective June 30, 2023 using an average of GLJ, McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s July 1, 2023 forecast pricing (“3C Average”). GLJ estimated that, as at June 30, 2023, the Properties contained remaining proved plus probable reserves of 952,000 barrels of oil and natural gas liquids and 5.9 Bcf of natural gas (1.9 million boe), with an estimated net present value of $19.0 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).
Cash offers relating to this process will be accepted until 12:00 pm on Thursday, December 7, 2023.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.