Dark Warrior Resources Ltd. (“Dark Warrior” or the “Company”) has initiated a process to explore strategic alternatives, which may include the sale of the Company’s shares or its assets, a merger, business combination, or some other corporate transaction (the “Process”). Dark Warrior has retained ARCO Capital Partners Inc. (“ARCO”) as its financial advisor to assist with the Process.
Dark Warrior is a private, Alberta incorporated energy company with a consolidated and operated medium and heavy oil production base in Provost and minor non-core properties in Three Hills and Pembina (the “Properties”). Company and Property highlights:
- Consolidated and operated medium and heavy oil production base from Upper and Lower Manville reservoirs in Provost
- 2024Q4E production of ~150 BOE/d consisting of 140 bbl/d of oil and 60 Mcf/d of gas, expected to generate net operating income of $0.52 MM for the quarter ($38/BOE NOI)
- Low production decline of 15%
- 25 to 27 hz drilling locations identified in GP, Cummings, Sparky and McLaren Formations, supported by bypass pay, well control, seismic and offsetting analog developments
- Four low-risk recompletions / re-entries identified in McLaren and Cummings wells
- Internal reserve evaluation yields 224 Mbbl of remaining recoverable oil with corresponding NPV10 (BT) of $5.3 MM using GLJ’s October 1, 2024 price forecast
- Ownership of multi-well oil batteries and water disposal sites to manage growth and opex
- $0.95 MM of AER Inactive Liability with $60k mandatory spend for 2025
- Tax pools of $7.7 MM with $2.7 MM categorized as non-capital losses
Summary information relating to this divestiture can be accessed here. The deadline for non-binding proposals is Friday, December 13, 2024.
Interested parties should contact ARCO directly at dkukic@arcocapital.ca or 403.560.2398 for additional information relating to the Process.