Harvard Resources Inc. (“Harvard” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its oil and natural gas interests located in the Mikwan area of Alberta (the “Property”).
The Property consists of approximately 30 sections of Crown land. Production from the Property is from Viking Formation. The Property has been under waterflood since October 2019.
Average daily production net to Harvard from the Property for quarter ended June 30, 2024 was approximately 64 boe/d, consisting of 53 barrels of oil and natural gas liquids per day and 63 Mcf/d of natural gas.
Operating income net to Harvard from the Property for the quarter ended June 30, 2024 was approximately $215,000, or $860,000 annualized.
As of September 7, 2024, the Property had a deemed net asset value of $1.3 million (deemed assets of $3.5 million and deemed liabilities of $2.2 million), with an LMR ratio of 1.59.
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Property (the “GLJ Report”). The GLJ Report is effective March 31, 2024 using GLJ’s forecast pricing as at April 1, 2024.GLJ estimates that, as at March 31, 2024, the Property contained remaining proved plus probable reserves of 163,000 barrels of oil and natural gas liquids and 76 MMcf of natural gas (176,000 boe), with an estimated net present value of $3.8 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, November 21, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.