On April 12, 2022, Alvarez & Marsal Canada Inc. was appointed as the receiver and manager (the “Receiver”) of the assets of Robus Resources Inc. (“Robus” or the “Company”) pursuant to an Order of the Court of Queen’s Bench of Alberta (as at then was). The Receiver has engaged Sayer Energy Advisors to assist it with a sale of all of Robus’ oil and natural gas interests located in Alberta (the “Property”). The Receiver has also provided a sale and investment solicitation process (“SISP”) outlining the details of the receivership sale. The Court of King’s Bench of Alberta approved the SISP on December 14, 2022, along with granting approval and reverse vesting order to complete a stalking horse credit bid (the “Stalking Horse Transaction”) to sell the Property of Robus to Robus Equity Acquisition Corporation for approximately USD$9.1 million.
The purpose of the SISP is to determine whether a higher and better offer than the Stalking Horse Transaction may be obtained. Further details regarding the marketing process, Stalking Horse Transaction and a copy of the SISP is found on Sayer’s website at www.sayeradvisors.com.
The Property is located in the Joarcam area of Alberta and consists of primarily non-operated unit interests. Robus does operate and hold a 100% working interest in two wells located at 102/05-27-047-20W4/00 and 102/09-27-047-20W4/00.
Average daily production net to Robus from the Property for the month of October 2022 was approximately 100 barrels of oil and natural gas liquids per day and 226 Mcf/d of natural gas (140 boe/d).
Operating income net to Robus from the Property for the twelve months ended October 2022 was approximately $203,000.
Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of the Property for this divestiture (the “Sproule Report”). The Sproule Report is effective December 31, 2022 using Sproule’s December 31, 2022 forecast pricing. The numbers quoted are preliminary as the Sproule Report has not been finalized. Sproule estimates that, as of December 31, 2022, the Property contained remaining proved plus probable reserves of 71,000 barrels of oil and natural gas liquids and 91 MMcf of natural gas (86,000 boe), with an estimated net present value of ($5.1 million) using forecast pricing at a 10% discount.
Further details regarding the SISP and marketing process can be found on our website at www.sayeradvisors.com. 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).
Offers relating to this divestiture will be accepted as outlined in the SISP until 12:00 pm on Thursday, February 9, 2023.
For further information please feel free to contact: Ben Rye, Grazina Palmer or Tom Pavic at 403.266.6133.