Archer Exploration Corp. (“Archer” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of certain of its oil and natural gas properties located in the Canal, Clear Hills, Rainbow Lake, Utikuma, Valhalla, Wapiti and Wembley areas of Alberta (the “Properties”).
Average daily sales production net to Archer from the Properties for the year ended December 31, 2025 was approximately 760 boe/d, consisting of 495 barrels of oil and natural gas liquids per day and 1.6 MMcf/d of natural gas.
Operating income net to Archer from the Properties for the year ended December 31, 2025 was approximately $8.2 million.
At Valhalla, Archer holds various working interests including a 2.08% working interest in the Saddle Hills Doe Creek Unit No. 1 and a 16.99% working interest in the Valhalla Doe Creek “I” Unit No. 2, both operated by Canadian Natural Resources Limited. Archer’s production at Valhalla is primarily from the Charlie Lake, Doe Creek, Dunvegan, Halfway and Montney formations. At Valhalla, Archer is targeting light oil within the Lower Charlie Lake Formation. There is abundant Charlie Lake oil production from offsetting producers including Canadian Natural, Tamarack Valley Energy Ltd., Whitecap Resources Inc. as well as Archer’s core Charlie Lake production. Archer is seeing excellent waterflood response in the Montney B Pool at Valhalla. The Company believes ample upside remains in optimizing the waterflood pattern.
At Wembley, Archer holds an 100% working interest in the Doig G Pool. The Wembley property is productive from the Doig Formation. The Company also has approval for a waterflood in the Wembley Doig G Pool. The Company has 6 sections of land on the Doig G Pool where it has identified 7 drilling locations on its lands, including 3 PUD locations and 4 unbooked locations.
At Wapiti, Archer has various working interests in several sections of land. The Wapiti property is productive from the Doe Creek Formation. Archer has identified 12 drilling locations on its lands at Wapiti South. The future wells are planned as single lateral, 2 mile, frac’d horizontals. The Company also believes there is potential for waterflood in the Doe Creek pool. The Company has identified drilling potential in the Doe Creek Formation in over 13 low-risk sections of land at Wapiti North. The Doe Creek pool offsetting the Company’s lands at Wapiti has been developed with vertical wells by Goose Creek Resources Ltd. Goose Creek acquired the sweet, Doe Creek oil pool in 2020. The pool is currently under waterflood.
At Rainbow Lake, Archer holds a 100% working interests in 50 Sections of land on which there are seven wells. Oil and natural gas production at Rainbow Lake is from the Muskeg Formation. Archer is currently producing light oil from two horizontal multi-stage frac’d Muskeg wells and one drilled uncompleted well at 102/15-19-109-08W6. Emulsion from Rainbow Lake is tied into the multi-well battery operated by Cenovus Energy Inc. at 10-10-109-08W6. Archer has identified drilling and completion upside in the Muskeg, Jean Marie and Keg River formations within the Black Creek Salt basin.
At Utikuma, Archer holds various, non-operated, working interests in two sections of land and a GORR interest in the well 100/03-24-082-10W5/00. Archer’s wells at Utikuma are operated by Blue Sky Resources Ltd., Clear North Energy Corp., Canadian Natural and Crimson Oil & Gas Ltd. In addition, Archer operates and holds a 100% working interest in one abandoned well at 100/04-24-083-10W5/00. The Mannville Group is being developed primarily with multi-lateral open hole wells near the Company’s lands in Township 85-13W5 by several operators including Baytex Energy Ltd., Canadian Natural, Headwater Exploration Inc., Obsidian Energy Ltd., Spur Petroleum Ltd. and Tamarack Valley.
At Clear Hills, Archer holds various working interests in 4 sections of land including P&NG rights in the Charlie Lake Formation in 2 sections. The Clear Hills property is prospective for light oil from the Lower Charlie Lake. There is recent Charlie Lake oil development from offsetting operators including Bonterra Energy Corp., Kelt Exploration Ltd., and Tourmaline Oil Corp.
At Canal, Archer holds a 100% working interest in a P&NG mineral license from surface to the base of the Wabamun Group in 3 sections of land. The mineral licenses expire on October 19, 2026.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of the Properties (the “McDaniel Report”) with the exception of Archer’s interests at Wapiti, which is a preliminary report as at December 31, 2025. The McDaniel Report is effective September 30, 2025 using an average of GLJ Ltd., McDaniel, and Sproule ERCE’s forecast pricing as at October 1, 2025.
Archer used the data from the McDaniel Report to prepare reports on the Properties. The economic runs prepared by McDaniel for the wells in the individual packages were grouped into the respective Properties by Archer.
Archer/McDaniel estimated that, as at September 30, 2025, the Properties contained remaining proved plus probable reserves of 4.4 million barrels of oil and natural gas liquids and 11.9 Bcf of natural gas (6.4 million boe), with an estimated net present value of $71.3 million using forecast pricing at a 10% discount. The reserve volumes and values associated with Archer’s interests at Wapiti are included above.
As of January 1, 2026, the Properties had a deemed liability value of $8.5 million.
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, March 19, 2026.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.