On December 7, 2022, FTI Consulting Canada Inc. was appointed as receiver and manager (the “Receiver”) of the assets of Changhua Canada Energy Ltd. (“Changhua” or the “Company”) pursuant to an Order of the Court of King’s Bench of Alberta. The Receiver has engaged Sayer Energy Advisors to assist it with a sale of all of Changhua’s oil and natural gas interests located in Alberta (the “Property”).
The Property is located in the Peco area of Alberta and consists of primarily oil production from the Cardium and Rock Creek formations.
Average daily sales production net to Changhua from the Property for the month of January 2023 was approximately 30 barrels of oil per day.
Forecasted net operating income from the Property for 2023 is estimated to be approximately $780,000.
As of February 4, 2023, Changhua’s net deemed asset value for the Peco property was $1.3 million (deemed assets of $2.1 million and deemed liabilities of $753,028), with an LMR ratio of 2.77.
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).
Cash offers relating to this process will be accepted until 12:00 pm on Thursday, April 13, 2023.
For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.