The City of Medicine Hat (the “City”) has engaged Sayer Energy Advisors to assist the City with the sale of certain of its oil and natural gas interests located in southern Alberta (the “Properties”).
The Properties are located in the Brooks and Medicine Hat areas. In the Medicine Hat area, the City’s interests are located in the Crescent Heights, Delta and Northeast Medicine Hat areas. In the Brooks area, the City’s interests consist of non-operated working interests located in the Badger, Eyremore and Queenstown areas of Alberta.
Average daily production net to the City from the Properties for the year ended December 31, 2024 was approximately 1,654 boe/d, consisting of approximately 9.9 MMcf/d of natural gas and 10 bbl/d of oil.
Operating income net to the City from the Properties for the year ended December 31, 2024 was approximately ($683,000).
As of April 1, 2025, the Properties had an internally estimated liability value of $52.0 million.
The City prepared an internal reserves evaluation of the Properties as part of its year-end reporting (the “Reserve Report”). The Reserve Report is effective January 1, 2025 using the City of Medicine Hat internal forecast pricing at January 1, 2025. The City estimates that, as of January 1, 2025, the Properties contained remaining proved plus probable reserves of 55.2 Bcf of natural gas and 51,000 barrels of oil and natural gas liquids (9.3 million boe), with an estimated net present value of $34.0 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, July 3, 2025.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.