Pieridae Energy Limited (“Pieridae” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of certain its oil and natural gas interests located in northern Alberta and northeastern British Columbia.
The properties are located in the Cabin Creek, Copton, Findley, Lynx, Narraway and Palliser areas of Alberta and the Ekwan, Ojay and Sierra areas of northeastern British Columbia (the “Properties”).
Average daily production net to Pieridae from the Properties for the year-ended December 31, 2023 was approximately 3,562 boe/d, consisting of approximately 21.2 MMcf/d of natural gas and 33 bbl/d of oil and natural gas liquids.
Operating income net to Pieridae from the Properties for the year-ended December 31, 2023 was approximately $9.0 million.
As of March 2, 2024, the properties in Alberta had a deemed net asset value of $23.1 million (deemed assets of $38.6 million and deemed liabilities of $15.4 million), with an LMR ratio of 2.50. Pieridae’s PCA score in British Columbia is 71.6. The Company has a $1.8 million security deposit with the BCER.
Pieridae has developed a multi-year program focused on sweet natural gas development locations with 44 locations identified throughout the Northern Alberta Foothills. The main play types include traditional multi-zone completions and specific horizontal targeting of high-quality reservoirs in the Dunvegan, Cadotte, and Falher formations. The Company believes additional step-out locations can be generated as each play is appraised.
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”). The Deloitte Report is effective December 31, 2023 using an average of Deloitte, GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited forecast pricing as at January 1, 2024. Deloitte estimated that, as at December 31, 2023, the Properties contained remaining proved plus probable reserves of 143.6 Bcf of natural gas and 194,000 barrels of natural gas liquids (24.1 million boe), with an estimated net present value of $134.8 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, May 16, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.