Battle River Energy Ltd. (“Battle River” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of certain non-core oil and natural gas interests located in the Provost area of Alberta, specifically the Consort, Dalmer, Hansman Lake, Kirkpatrick Lake and Veteran areas (the “Properties”). Battle River is selling the Properties in order to focus its operations on its core assets.
Average daily production net to Battle River from the Properties for July 2021 was approximately 229 barrels of oil and natural gas liquids per day and 97 Mcf/d of natural gas (246 boe/d).
Net operating income from the Properties for July 2021 was approximately $77,000 or $925,000 on an annualized basis.
The Company has identified an additional 337 bbl/d of oil production which could be added through re-activations and repairs for a total cost of $1,540,000. Battle River has also identified 37 horizontal upside drilling locations on the Properties. The Consort, Hansman Lake and Kirkpatrick Lake properties are also under waterflood.
InSite Petroleum Consultants Ltd. (“InSite”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end evaluation (the “InSite Report”). The InSite Report is effective December 31, 2019 using Sproule Associates Limited’s December 31, 2019 forecast pricing. InSite estimates that, as of December 31, 2019, the Properties contained remaining proved plus probable reserves of 1.2 million barrels of oil and natural gas liquids and 129 MMcf of natural gas (1.2 million boe), with an estimated net present value of $14.1 million using forecast pricing at a 10% discount.
Summary information relating to this divestiture is attached to this correspondence. More specific information is available at www.sayeradvisors.com. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, November 18, 2021.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.