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Galaxy Energy Ltd.: Property Divestiture

September 16, 2024 7:07 AM
BOE Report Staff

Galaxy Energy Ltd. (“Galaxy” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale or farmout of its oil and natural gas interests located in the Carruthers, Rush Lake and Turtle Lake areas of southwest Saskatchewan (the “Properties”).

The Properties consist of 1,320 acres of Crown mineral rights of land near Lloydminster, Saskatchewan, which Galaxy farmed-in on. The Properties are prospective for heavy oil production. Galaxy has drilled, cased, completed and equipped three vertical heavy oil wells for multi-zone oil production on the Properties.

Combined production capability from the existing vertical wells on the Properties is approximately 50 bbl/d of oil. Galaxy has shut-in production from the Properties due to mechanical or operational reasons. The Company was not positioned for additional related capital expenditures.

The Company has discovered two new significant heavy oil pools in the Colony and Cummings formations at Carruthers where it believes there are potentially millions of barrels of oil recoverable through the use of multi-leg horizontal drilling. At Rush Lake, Galaxy has identified heavy oil potential in the McLaren and Regional Colony Sands formations. At Turtle Lake, there is a single LSD which Galaxy believes may be capable of over a million barrels of recoverable oil.

Summary information relating to this divestiture is attached to this correspondence.  More specific information is available at www.sayeradvisors.com.  A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).

Proposals relating to this process will be accepted until 12:00 pm on Thursday, October 24, 2024.

For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.

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