Corex Resources Ltd. (“Corex” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of its working interests located in the Cecil area of Alberta (the “Property”).
At Cecil, Corex holds predominantly operated working interests ranging from 40%-100% in 3.25 sections of land. Production from the Cecil property is primarily from the Charlie Lake Formation.
Average daily sales production net to Corex from Cecil for the months of July and August of 2023 was approximately 65 boe/d, consisting of 58 bbl/d of oil and natural gas liquids and 40 Mcf/d of natural gas.
Operating income net to Corex from Cecil for the months of July and August 2023 was approximately $112,000 per month, or $1.3 million on an annualized basis.
As of October 7, 2023, the Cecil property had a deemed net asset value of $1.2 million (deemed assets of $2.4 million and deemed liabilities of $1.2 million), with an LMR ratio of 1.99.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of the Property as a mechanical update of the evaluation which was completed as part of the Company’s 2022 year-end reporting (the “McDaniel Report”). The McDaniel Report is effective October 1, 2023 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s October 1, 2023 forecast pricing (“3C Average”). McDaniel estimated that, as of October 1, 2023, the Cecil property contained remaining proved plus probable reserves of 818,000 barrels of oil and natural gas liquids and 443 MMcf of natural gas (892,000 boe), with an estimated net present value of $5.6 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, December 14, 2023.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.