Teine Energy Ltd. (“Teine” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of certain non-core oil and natural gas interests located in the Pembina area of Alberta (the “Property”). The Property consists of a 100% working interest in approximately 177 sections of Crown land, on which there are five wells currently drilled into the Duvernay Formation. Teine is selling the Property in order to focus its operations on its core areas.
Average daily production net to Teine from the Property for calendar year 2023 was approximately 117 boe/d, consisting of 99 barrels of oil and natural gas liquids per day and 107 Mcf/d of natural gas.
Operating income net to Teine from the Property for the year ended December 31, 2023 was approximately $2.5 million.
The Property lies within the Bigoray and Pembina strike areas within the West Shale Basin. Teine holds over 45,000 hectares (177 sections) of largely continuous land through this highly prospective regional fairway.
Teine has mapped several sections of natural gas pay in the regional Wilrich Member sands on the Property. Most of the Wilrich production is commingled with underlying Glauconitic Sandstone production, which is also trapped by the deep cutting Wilrich valley complex. In a few cases it can be found producing on its own. The Company has identified 19 horizontal locations on the Property targeting resource ranging from 5 Bcf/section to over 11 Bcf/section.
As of February 3, 2024, the Property had a deemed net asset value of $3.3 million (deemed assets of $4.1 million and deemed liabilities of $836,347), with an LMR ratio of 4.95.
Teine prepared a reserves evaluation of the Property which has been verified by a third party (the “Reserve Report”). The Reserve Report is effective December 31, 2022 using Sproule Associates Limited’s forecast pricing as at December 31, 2022. The Company estimates that, as at December 31, 2022, the Property contained remaining proved plus probable reserves of 246,000 barrels of oil and natural gas liquids and 228 MMcf of natural gas, with an estimated net present value of $7.5 million using forecast pricing at a 10% discount.
Summary information relating to this divestiture is attached to this correspondence. 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, April 18, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.