Aeneid Exploration Inc. (“Aeneid” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of all of its oil and natural gas interests. Aeneid’s main producing properties are located in the Carmangay and Mitsue areas of Alberta as well as non-producing properties located in the Alderson, Gift and Sugden areas of Alberta (the “Properties”).
Average daily sales production net to Aeneid from the Properties for the year ended December 31, 2023 was approximately 89 boe/d, consisting of approximately 89 bbl/d of oil and one Mcf/d of natural gas.
Operating income net to Aeneid from the Properties for the year ended December 31, 2023 was approximately $936,000 which includes processing income detailed below.
The Company generated approximately $330,000 in processing income in 2023 with 1.0 MMcf/d of third-party natural gas production going through Aeneid’s facility at 16-31-073-05W5 and 1,000 bbl/d of third-party oil production. The facilities have room for additional capacity and upside in additional third-party revenues.
As of March 2, 2024, the Properties had a deemed net asset value of ($2.0 million) (deemed assets of $5.0 million and deemed liabilities of $7.0 million), with an LMR ratio of 0.71.
Aeneid prepared a reserves evaluation of the Properties (the “Reserve Report”). The Reserve Report is effective January 1, 2024 based on Aeneid’s internal price forecast. The Company estimates that, as at January 1, 2024, the Properties property contained remaining proved plus probable reserves of 1.8 million barrels of oil, with an estimated net present value of $34.1 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 June 6, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett or Tom Pavic at 403.266.6133.