On April 26, 2024, the Court of King’s Bench of Alberta granted an order pursuant to the Companies’ Creditors Arrangement Act, (“CCAA”) appointing KSV Restructuring Inc. (“KSV”) as the monitor (the “Monitor”) of AlphaBow Energy Ltd. (“AlphaBow” or the “Company”). As part of the CCAA, the Company has engaged Sayer Energy Advisors to assist it with a Sales and Investment Solicitation Process (the “SISP”).
The SISP is intended to solicit interest in, and opportunities for a sale of, or investment in, all or part of AlphaBow’s oil and natural gas interests and facilities and carbon capture, utilization and storage facility in Alberta, Canada (the “Properties”), or an investment in AlphaBow, which may include a restructuring, recapitalization, or other form of reorganization of the Company. All offers received at the bid deadline will be reviewed by the Monitor and the most acceptable offers may be accepted by the Monitor, subject to Court approval. A copy of the SISP is found on our website at www.sayeradvisors.com.
Prior to the CCAA proceedings, on March 30, 2023 AlphaBow was ordered by the Alberta Energy Regulator (“AER”) under the Oil and Gas Conservation Act to submit and implement a Reasonable Care and Measures (“RCAM”) Plan. Pursuant to the RCAM order, the AER issued a suspension order to AlphaBow on June 5, 2023. On September 6, 2023 the AER directed the Orphan Well Association (“OWA”) to take possession of all licensed sites of AlphaBow.
Prior to the suspension order, average production net to AlphaBow from the Properties for the first quarter of 2023 was approximately 3,450 boe/d consisting of 12.1 MMcf/d of natural gas and 1,430 barrels of oil and natural gas liquids per day.
The Properties consist of both operated and non-operated interests located throughout Alberta. For this offering, the Properties are separated into the following geographical packages: Central, East, North, Provost, South and W5 & W6.
In the Chigwell area, AlphaBow has a CO2 capture and enhanced oil recovery (“EOR”) project. AlphaBow believes that the Chigwell EOR and CO2 capture projects are strategic assets of the Company but have lacked investment in recent years. With further investment in the Chigwell EOR projects the Company believes it can expand facilities, convert certain wells to injectors, reactivate certain wells and drill new wells to bring the area back to long-term sustainable oil production.
The Company has identified potential for drilling upside opportunities in the Aerial, Amisk, Edson, Green Glades, Kaybob, and Pine Creek areas of Alberta.
As of January 7, 2023, AlphaBow’s net deemed asset value was ($17.5 million) (deemed assets of $214.2 million and deemed liabilities of $231.7 million), with an LMR ratio of 0.92.
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).
Offers as outlined in the SISP relating to this process will be accepted until 12:00 pm on Thursday, July 4, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett or Tom Pavic at 403.266.6133.