New North Resources Ltd. (“New North” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its non-core oil and natural gas interests located in the Deer Mountain area of Alberta (the “Property”). The Property consists of the Company’s non-operated 3.2% working interest in the Deer Mountain Unit No. 2.
Average daily production net to New North from the Property for the quarter ended June 30, 2025 was approximately 36 boe/d, consisting of 35 barrels of oil and natural gas liquids per day and 3 Mcf/d of natural gas.
Operating income net to New North from the Property for the quarter ended June 30, 2025 was approximately $35,800 per month or $430,000 on an annualized basis.
Production from the unit consists mainly of oil from the commingled Beaverhill Lake A, B Pool. The Unit is currently under water injection.
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Property (the “Trimble Report”) specifically for this divestiture. The Trimble Report is effective September 30, 2025 using Trimble’s July 1, 2025 forecast pricing. Trimble estimates that, as at September 30, 2025, the Deer Mountain property will have remaining proved plus probable reserves of 174,000 barrels of oil and natural gas liquids and 17 MMcf of natural gas (177,000 boe), with an estimated net present value of $3.0 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, November 6, 2025.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.