On January 5, 2024, Kingsland Oil Corp. (“Kingsland” or the “Company”) made an assignment into bankruptcy and BDO Canada Limited was appointed as the trustee in bankruptcy (the “Trustee”) of the bankrupt estate. The Trustee has engaged Sayer Energy Advisors to assist it with a sale of Kingsland’s oil and natural gas properties (the “Properties”).
The Trustee has instructed that interested parties must provide a marked-up copy of a purchase and sale agreement (the “PSA”) acceptable to the Trustee with any offers submitted for the Properties. A copy of the PSA will be available for review to parties which execute a confidentiality agreement.
The Trustee has also provided a Sale Solicitation Process document (the “SSP”) outlining further details, and the terms and conditions of this sale. The SSP must be read in conjunction with the marketing material. A copy of the SSP is found on our website at www.sayeradvisors.com. All offers received at the bid deadline will be reviewed by the Trustee and the most acceptable offer may be accepted by the Trustee, subject to Inspector approval.
The Properties are located in the Delta West and Tompkins areas of southwestern Saskatchewan.
Kingsland ceased operations and shut-in operated production in August 2023. Prior to shut-in, average production net to Kingsland from the Properties for the first half of 2023 averaged approximately 21 boe/d consisting of 19 barrels of oil and 12 Mcf/d of natural gas.
Sales revenue from the Properties net to Kingsland for the first half of 2023 averaged approximately $40,000 per month.
As of December 28, 2023, the Properties had a deemed net asset value of ($942,819) (deemed assets of $0 and deemed liabilities of $942,819), with an LMR ratio of 0.00. The Company has a security deposit of $644,597 in place with the Saskatchewan Ministry of Energy and Resources which is not included in the numbers above.
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 divestiture will be accepted as outlined in the SSP until 12:00 pm on Thursday, May 2, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett or Tom Pavic at 403.266.6133.