Canpar Holdings Ltd. (“Canpar” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its remaining oil and natural gas working interests located in Alberta, British Columbia and Saskatchewan (the “Properties”).
The Properties consist of mainly non-operated working interests and certain operated working interests which are located throughout Alberta, British Columbia and Saskatchewan. For marketing purposes, the Properties are separated into the following geographical packages for this offering: Central AB, Northern AB, Peace River Arch AB, Southern AB, Western AB, Northeast BC, West Central SK and Southwest SK.
Average production net to Canpar from the Properties in the fourth quarter of 2023 was nine boe/d, consisting of 37 Mcf/d of natural gas and minor volumes of natural gas liquids per day.
Operating income net to Canpar from the producing properties for the fourth quarter of 2023 was approximately $630 or $2,520 on an annualized basis.
As of May 4, 2024, Canpar’s net deemed asset value in Alberta was ($56,500) (deemed assets of $0 and deemed liabilities of $56,500), with an LMR ratio of 0.00. As of April 28, 2024, Canpar’s net deemed asset value in Saskatchewan was ($88,800) (deemed assets of $0 and deemed liabilities of $88,800), with an LMR ratio of 0.00. The Company does not operate any wells in British Columbia.
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Trimble estimated that as at December 31, 2023 the Properties contained remaining proved plus probable reserves of 54 MMcf of natural gas and 1,000 barrels of oil and natural gas liquids (10,000 boe), with an estimated net present value of approximately $47,000 using forecast pricing at a 10% discount. The values shown below do not include capital associated with the wells with no reserves assigned.
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 27, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.