Highvale Energy Limited (“Highvale” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its oil and natural gas interests located in the Cherhill area of Alberta (the “Property”).
Following recent repairs and reactivations, current production from the Property is approximately 173 boe/d, consisting of 783 Mcf/d of natural gas and 43 bbl/d of oil and natural gas liquids.
Average daily production net to Highvale from Cherhill for the six months ended June 30, 2026 was approximately 152 boe/d, consisting of 679 Mcf/d of natural gas and 39 bbl/d of oil and natural gas liquids.
Forecasted operating income net to the Company from the Property for the year ended December 31, 2027 is approximately $364,000 on a proved developed producing basis.
The Company has identified stacked upside potential on its lands at Cherhill in the Banff, Belly River, Ellerslie and Viking formations. The majority of the land base is undeveloped.
The Company also has existing infrastructure including a sour natural gas processing plant with excess capacity located at 02-25-056-06W5. The Company has identified potential for additional third-party processing.
Highvale prepared an internal reserves evaluation of the Property (the “Reserve Report”). The Reserve Report is effective January 1, 2026 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd., and Sproule ERCE’s forecast pricing as at December 31, 2025. Highvale estimated that, as at January 1, 2026, the Cherhill property contained remaining proved plus probable reserves of 3.1 Bcf of natural gas and 258,000 barrels of oil and natural gas liquids (776,000 boe), with an estimated net present value of $3.5 million using forecast pricing at a 10% discount.
As of September 1, 2026, the Cherhill property had a deemed liability value of $4.0 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, November 26, 2026.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.