Outpost Energy Ltd. (“Outpost” or the “Company”) has engaged Sayer Energy Advisors to assist it with a corporate sale process.
Outpost is a private junior oil and natural gas company with operated working interests located in the Blackfoot, Bonanza, Edson, Gilby, Highvale, Innisfail, Long Coulee, Pembina, Pouce Coupe South, Rainbow Lake and Snipe Lake areas of Alberta as well as non-producing properties located throughout Alberta (the “Properties”).
Forecasted average daily sales production net to Outpost from the Properties on a proved developed producing basis for the year ended December 31, 2024 is approximately 395 boe/d, consisting of approximately 2.0 MMcf/d of natural gas and 57 bbl/d of oil and natural gas liquids.
Forecasted operating income net to Outpost on a proved developed producing basis for the year ended December 31, 2024 is approximately $1.4 million.
The Company has minimal bank debt and positive working capital. As at December 31, 2022, Outpost had total unused Canadian income tax pools of approximately $483,000.
As of February 3, 2024, Outpost had a deemed net asset value of $6.4 million (deemed assets of $11.1 million and deemed liabilities of $4.8 million), with an LMR ratio of 2.33.
InSite Petroleum Consultants Ltd. (“InSite”) prepared an independent reserves evaluation of the Properties (the “InSite Report”). The InSite Report is effective November 1, 2023 using InSite’s September 30, 2023 forecast pricing. InSite estimated that, as at November 1, 2023, the Properties contained remaining proved plus probable reserves of 7.5 Bcf of natural gas and 264,000 barrels of oil and natural gas liquids (1.5 million boe), with an estimated net present value of $7.1 million using forecast pricing at a 10% discount.
Outpost’s preference is a sale of the shares of the Company but it will also entertain offers for the individual Properties.
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).
Offers relating to this process will be accepted until 12:00 pm on Thursday, April 4, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.