Prairie Thunder Resources Ltd. (“Prairie Thunder” 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 Puskwa area of Alberta (the “Property”).
Average daily production net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 was approximately 94 boe/d, consisting of 94 bbl/d of oil.
Operating income net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 averaged approximately $56,000 per month, or $672,000 on an annualized basis.
As of August 3, 2024, the Puskwa property had a deemed net asset value of $3.0 million (deemed assets of $4.5 million and deemed liabilities of $1.5 million), with an LMR ratio of 3.03.
The Company has two Wabamun horizontal drilling locations on its lands at Puskwa. The Wabamun Formation is a highly fractured limestone reservoir. Other prospective zones include the Charlie Lake Formation.
InSite Petroleum Consultants Ltd. (“InSite”) prepared an independent reserves evaluation of the Property (the “InSite Report”) as part of the Company’s year end reporting. The InSite Report is effective January 1, 2024 using InSite’s December 31, 2023 forecast pricing. InSite estimates that, as at December 31, 2023, the Puskwa property contained remaining proved plus probable reserves of 642,000 barrels of oil, with an estimated net present value of $14.6 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).
Cash offers relating to this process will be accepted until 12:00 pm on Thursday, December 5, 2024.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.