Muddy Petroleum Company Ltd. (“Muddy” or the “Company”) has engaged Sayer Energy Advisors to assist it with a strategic alternatives process. The Company is open to reviewing all alternatives including, but not limited to, a corporate transaction resulting in the sale of all of the shares of the Company, or the sale of the majority of Muddy’s oil and natural gas assets, in whole or in part.
Muddy is a private junior oil and natural gas company with predominantly non-operated working interests located in the Gilby, Gold Creek, Kaybob, Obed and Pembina areas, as well as non-producing properties located throughout Alberta (the “Properties”).
As at July 31, 2024, the Company had nominal working capital. As at December 31, 2023, Muddy had total unused Canadian income tax pools of approximately $10.9 million, including $3.4 million of non-capital losses.
As of September 7, 2024, the Properties had a deemed net asset value of ($574,773) (deemed assets of $61,983 and deemed liabilities of $636,756), with an LMR ratio of 0.10. These numbers do not include Muddy’s current security deposit with the Alberta Energy Regulator which is approximately $809,000. Muddy’s current production is from its non-operated properties, and one operated well at Pembina.
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, December 5, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.