ISH Energy Ltd. (“ISH” 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 Desan area of northeastern British Columbia (the “Property”). The Company is selling the Property in order to focus its operations on its core areas.
Average daily production net to ISH from Desan for the 6 months ended June 30, 2026 was approximately 565 boe/d, consisting of 443 bbl/d of oil and natural gas liquids and 734 Mcf/d of natural gas. Production was impacted by pricing related natural gas shut-in for May and June 2026.
Operating income net to the Company from Desan for the 6 months ended June 30, 2026 was approximately $460,000 per month or $5.5 million on an annualized basis.
At Desan, the Company has identified multi-zone upside in the Debolt, Pekisko, Shunda and Jean-Marie formations.
As of September 17, 2026, the Desan property had a deemed liability value of $35.8 million.
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Property (the “GLJ Report”). The GLJ Report is effective December 31, 2025 using an average of GLJ, McDaniel & Associates Consultants Ltd., and Sproule ERCE’s forecast pricing as at January 1, 2026. GLJ estimated that, as at December 31, 2025, the Desan property contained remaining proved plus probable reserves of 2.6 million barrels of oil and natural gas liquids and 1.4 Bcf of natural gas, with an estimated net present value of $9.9 million using forecast pricing at a 10% discount. Note that the net present values in the GLJ Report only include asset retirement obligations of approximately $1.3 million associated with undeveloped locations. GLJ provided a cautionary note regarding the asset retirement obligations which will be made available to parties that execute a confidentiality agreement.
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, December 10, 2026.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.