Axiom Oil and Gas Inc. (“Axiom” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of certain of its oil and natural gas properties and midstream interests located in Alberta (the “Properties”).
The Properties consist of operated and non-operated working interests in the Brazeau, Hamilton Lake, Killam/Iron Creek, Marten Creek and Mundare areas of Alberta.
The Properties also include Axiom’s 100% working interest facilities in the Bonnie Glen, Mikwan, Warwick and Windfall areas of Alberta which generated approximately $288,000 in processing revenue in the second quarter of 2025.
Average daily sales production net to Axiom from the Properties for the second quarter of 2025 was approximately 374 boe/d, consisting of 1.1 MMcf/d of natural gas and 190 barrels of oil and natural gas liquids per day. Operating income net to Axiom from the Properties for the second quarter of 2025 was approximately ($1.1 million).
The Company has substantial operated infrastructure including roads and facilities, which provide road use and facility income, and a major trunkline at Marten Creek. The infrastructure includes natural gas plants, oil batteries, pipelines, roads and third-party processing of 900 Mcf/d of natural gas, 200 bbl/d of oil, and 100 m3/d water disposal. The Marten Creek property has potential to restore 3.0 MMcf/d of currently shut-in natural gas production. The Company has also identified the potential for a bitcoin mining operation at Marten Creek.
At Hamilton Lake, Axiom has identified substantial single-leg horizontal drilling locations and recompletion candidates targeting the Viking B and C sands on its lands. An independent recent waterflood study confirms major oil recovery upside.
Prior to being shut-in in April 2024, gross average daily sales production from Brazeau was over 2 MMcf/d of natural gas and approximately 200 barrels of natural gas liquids and 40 tonnes per day of sulphur (for a products total of 650 boe/d) with potential for another 100 boe/d from a planned acid stimulation, which could be restored with the required capital. At Brazeau, Axiom holds an 87.86% working interest in the Brazeau River Nisku ‘P’ Pool Unit. The remaining working interest is held in trust by Tidewater Midstream and Infrastructure Ltd.
Axiom has filed a $110 million statement of claim against Tidewater that includes loss of reserves and damages. Axiom received a counter claim of $1.2 million for Tidewater corporate liabilities not specific to the property. Additional details of the lawsuit are available on our website at www.sayeradvisors.com and further information including the statement of claim will be made available in the virtual data room for parties that execute a confidentiality agreement.
At Killam/Iron Creek, Axiom has drilling and completion upside in the Lloydminster/Glauconitic Sandstone, Ostracod and Ellerslie formations. Axiom has 100% and 70.7% working interests in natural gas processing plants located at 13-31-045-13W4 and 04-05-045-12W4, and a 100% working interest in a water disposal well located at 100/07-32-044-12W4/02 which provides third-party revenue at Killam.
As of September 1, 2025, the Properties had a deemed liability value of $36.9 million.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report is effective December 31, 2024 using an average of GLJ Ltd., McDaniel, and Sproule ERCE’s forecast pricing as at January 1, 2025. McDaniel estimated that, as of December 31, 2024, the Properties (excluding Brazeau) contained remaining proved plus probable reserves of 7.2 Bcf of natural gas and 701,000 barrels of oil and natural gas liquids (1.9 million boe), with an estimated net present value of ($8.4 million) using forecast pricing at a 10% discount.
McDaniel prepared an independent reserves evaluation of the Brazeau property as part of the Company’s year-end reporting effective December 31, 2023 using an average of GLJ Ltd., McDaniel, and Sproule ERCE’s forecast pricing as at January 1, 2024. McDaniel estimated that, as of December 31, 2023, the Brazeau property contained remaining proved plus probable reserves of 6.3 Bcf of natural gas and 931,000 barrels of oil and natural gas liquids (2.0 million boe), with an estimated net present value of $17.8 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 27, 2025.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.