Offering Details
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Under Review / Primrose Drilling Ventures Ltd.
Primrose Drilling Ventures Ltd.
Corporate DivestitureBid Deadline: June 29, 2023
12:00 PM
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OVERVIEW
Primrose Drilling Ventures Ltd. (“Primrose” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of the shares of the Company.
Primrose is a private junior oil and natural gas company with operated working interests located in the Fenn West and Bon Accord areas of Alberta and additional working interests in certain non-producing wells located in the Peco, Provost, Sunnynook, Red Willow and Wildwood areas of Alberta (the “Properties”).
The Company currently has positive working capital of approximately $1,700,000.
The Company also holds an operator’s license in Saskatchewan but currently does not own any oil and natural gas interests in Saskatchewan.
Primrose is a tightly-held private company with only one shareholder and no debt or severance obligations. The shares of Primrose are held by 1280417 Alberta Ltd.
Average daily sales production net to Primrose from the Properties for the fourth quarter of 2022 was approximately 93 Mcf/d of natural gas and 10 barrels of oil per day (26 boe/d).
Operating income net to Primrose from the Properties in the fourth quarter of 2022 averaged approximately $6,400 per month, or $76,800 on an annualized basis.
As of April 1, 2023, Primrose had total deemed assets of $1.0 million, deemed liabilities of ($939,416) (net deemed assets of $85,695) with an LMR of 1.09. These numbers include Primrose’s security deposit with the Alberta Energy Regulator ("AER") of approximately $263,916.
Additional corporate information relating to Primrose will be provided to parties upon execution of a confidentiality agreement.
Primrose is a private junior oil and natural gas company with operated working interests located in the Fenn West and Bon Accord areas of Alberta and additional working interests in certain non-producing wells located in the Peco, Provost, Sunnynook, Red Willow and Wildwood areas of Alberta (the “Properties”).
The Company currently has positive working capital of approximately $1,700,000.
The Company also holds an operator’s license in Saskatchewan but currently does not own any oil and natural gas interests in Saskatchewan.
Primrose is a tightly-held private company with only one shareholder and no debt or severance obligations. The shares of Primrose are held by 1280417 Alberta Ltd.
Average daily sales production net to Primrose from the Properties for the fourth quarter of 2022 was approximately 93 Mcf/d of natural gas and 10 barrels of oil per day (26 boe/d).
Operating income net to Primrose from the Properties in the fourth quarter of 2022 averaged approximately $6,400 per month, or $76,800 on an annualized basis.
As of April 1, 2023, Primrose had total deemed assets of $1.0 million, deemed liabilities of ($939,416) (net deemed assets of $85,695) with an LMR of 1.09. These numbers include Primrose’s security deposit with the Alberta Energy Regulator ("AER") of approximately $263,916.
Additional corporate information relating to Primrose will be provided to parties upon execution of a confidentiality agreement.
Overview Map Showing the Location of Primrose's Interests
Corporate Overview
The Company currently has positive working capital of approximately $1,700,000.
The shares of Primrose are held by 1280417 Alberta Ltd.
Production Overview
Average daily sales production net to Primrose from the Properties for the fourth quarter of 2022 was approximately 93 Mcf/d of natural gas and 10 barrels of oil per day (26 boe/d) as outlined below.
Operating income net to Primrose from the Properties in the fourth quarter of 2022 averaged approximately $6,400 per month, or $76,800 on an annualized basis.
Gross Production Group Plot of Primrose's Oil & Natural Gas Wells
Seismic
The Company does not have ownership in any seismic data.
LMR Summary
As of April 1, 2023, Primrose had total deemed assets of $1.0 million, deemed liabilities of ($939,416) (net deemed assets of $85,695) with an LMR of 1.09.
The Company does not have ownership in any seismic data.
LMR Summary
As of April 1, 2023, Primrose had total deemed assets of $1.0 million, deemed liabilities of ($939,416) (net deemed assets of $85,695) with an LMR of 1.09.
The numbers listed in the preceding chart include Primrose’s security deposit with the AER of approximately $263,916.
Reserves Overview
The Company prepared an internal reserves evaluation of the Properties (the “Reserve Report”) as part of the Company’s year end reporting. The Reserve Report is effective January 1, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s March 31, 2023 forecast pricing (“3C Average”).
Primrose estimated that, as at January 1, 2023, the Properties contained remaining proved developed producing reserves of 69,000 barrels of oil and natural gas liquids and 493 MMcf of natural gas (151,000 boe), with an estimated net present value of $1.4 million using forecast pricing at a 10% discount.
Reserves Overview
The Company prepared an internal reserves evaluation of the Properties (the “Reserve Report”) as part of the Company’s year end reporting. The Reserve Report is effective January 1, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s March 31, 2023 forecast pricing (“3C Average”).
Primrose estimated that, as at January 1, 2023, the Properties contained remaining proved developed producing reserves of 69,000 barrels of oil and natural gas liquids and 493 MMcf of natural gas (151,000 boe), with an estimated net present value of $1.4 million using forecast pricing at a 10% discount.
FENN WEST
Township 36, Range 21 W4
At Fenn West, Primrose holds a 100% working interest in one section of Crown land on which there is one well producing natural gas from the Detrital Formation. Production from Fenn West is from the well PDVL FennW 00/06-12-036-21W4/02.
Average daily production sales net to Primrose from Fenn West for the fourth quarter of 2022 was approximately 93 Mcf/d of natural gas with minor volumes of associated natural gas liquids (16 boe/d).
Operating income net to Primrose from Fenn West for the fourth quarter of 2022 was approximately $33,000 or $132,000 on an annualized basis.
At Fenn West, Primrose holds a 100% working interest in one section of Crown land on which there is one well producing natural gas from the Detrital Formation. Production from Fenn West is from the well PDVL FennW 00/06-12-036-21W4/02.
Average daily production sales net to Primrose from Fenn West for the fourth quarter of 2022 was approximately 93 Mcf/d of natural gas with minor volumes of associated natural gas liquids (16 boe/d).
Operating income net to Primrose from Fenn West for the fourth quarter of 2022 was approximately $33,000 or $132,000 on an annualized basis.
Fenn West, Alberta
PDVL FennW 00/06-12-036-21W4/02
Primrose's Detrital Natural Gas Well
Fenn West Marketing
Natural gas from Fenn West is processed at the Stettler 06-21-038-20W4 natural gas plant owned by Bearspaw Petroleum Ltd.
Fenn West Facilities
The Company does not have an interest in any facilities at Fenn West.
Fenn West Reserves
The Company prepared an internal reserves evaluation of the Properties (the “Reserve Report”) as part of the Company’s year end reporting. The Reserve Report is effective January 1, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s March 31, 2023 forecast pricing (“3C Average”).
Primrose estimated that, as of January 1, 2023, the Fenn West property contained remaining proved developed producing reserves of 493 MMcf of natural gas (82,000 boe), with an estimated net present value of $594,000 using forecast pricing at a 10% discount.
Natural gas from Fenn West is processed at the Stettler 06-21-038-20W4 natural gas plant owned by Bearspaw Petroleum Ltd.
Fenn West Facilities
The Company does not have an interest in any facilities at Fenn West.
Fenn West Reserves
The Company prepared an internal reserves evaluation of the Properties (the “Reserve Report”) as part of the Company’s year end reporting. The Reserve Report is effective January 1, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s March 31, 2023 forecast pricing (“3C Average”).
Primrose estimated that, as of January 1, 2023, the Fenn West property contained remaining proved developed producing reserves of 493 MMcf of natural gas (82,000 boe), with an estimated net present value of $594,000 using forecast pricing at a 10% discount.
Fenn West LMR as of April 1, 2023
As of April 1, 2023, the Fenn West property had total deemed assets of $327,765, deemed liabilities of $101,765 (net deemed assets of $225,854) with an LMR of 3.22.
As of April 1, 2023, the Fenn West property had total deemed assets of $327,765, deemed liabilities of $101,765 (net deemed assets of $225,854) with an LMR of 3.22.
Fenn West Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
BON ACCORD
Township 56, Range 23-24 W4
At Bon Accord, Primrose holds a 100% working interest in one quarter section of Freehold land on which there is one well producing oil and natural gas from the Ellerslie Formation. Production from Bon Accord is from the well PDVL FBA 00/09-23-056-24W4/00.
Average daily production sales net to Primrose from Bon Accord for the fourth quarter of 2022 was approximately 10 barrels of oil per day.
Operating income net to Primrose from Bon Accord for the fourth quarter of 2022 was approximately $3,600 or $14,000 on an annualized basis.
At Bon Accord, Primrose holds a 100% working interest in one quarter section of Freehold land on which there is one well producing oil and natural gas from the Ellerslie Formation. Production from Bon Accord is from the well PDVL FBA 00/09-23-056-24W4/00.
Average daily production sales net to Primrose from Bon Accord for the fourth quarter of 2022 was approximately 10 barrels of oil per day.
Operating income net to Primrose from Bon Accord for the fourth quarter of 2022 was approximately $3,600 or $14,000 on an annualized basis.
Bon Accord, Alberta
PDVL FBA 00/09-23-056-24W4/00
Primrose's Ellerslie Oil Well
Bon Accord Facilities
The Company has an interest in the following facility at Bon Accord.
The Company has an interest in the following facility at Bon Accord.
Bon Accord Reserves
The Company prepared an internal reserves evaluation of the Properties (the “Reserve Report”) as part of the Company’s year end reporting. The Reserve Report is effective January 1, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s March 31, 2023 forecast pricing (“3C Average”).
Primrose estimated that, as of January 1, 2023, the Bon Accord property contained remaining proved developed producing reserves of 69,000 barrels of oil, with an estimated net present value of $792,000 using forecast pricing at a 10% discount.
The Company prepared an internal reserves evaluation of the Properties (the “Reserve Report”) as part of the Company’s year end reporting. The Reserve Report is effective January 1, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s March 31, 2023 forecast pricing (“3C Average”).
Primrose estimated that, as of January 1, 2023, the Bon Accord property contained remaining proved developed producing reserves of 69,000 barrels of oil, with an estimated net present value of $792,000 using forecast pricing at a 10% discount.
Bon Accord LMR as of April 1, 2023
As of April 1, 2023, the Bon Accord property had total deemed assets of $433,430, deemed liabilities of $187,316 (net deemed assets of $246,144) with an LMR of 2.31.
As of April 1, 2023, the Bon Accord property had total deemed assets of $433,430, deemed liabilities of $187,316 (net deemed assets of $246,144) with an LMR of 2.31.
Bon Accord Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
ADDITIONAL MINORS
The Company holds working interest in certain non-producing wells located in the Peco, Provost, Sunnynook, Red Willow and Wildwood areas of Alberta (the “Additional Minor Properties”).
Additional Minors Properties LMR as of April 1, 2023
As of April 1, 2023, the Additional Minor Properties had total deemed assets of $0, deemed liabilities of ($650,189) (net deemed assets of ($650,189) with an LMR of 0.00.
Additional Minors Properties LMR as of April 1, 2023
As of April 1, 2023, the Additional Minor Properties had total deemed assets of $0, deemed liabilities of ($650,189) (net deemed assets of ($650,189) with an LMR of 0.00.
Additional Minors Properties Facilities
Primrose has an interest in the following facilities associated with the Additional Minor Properties.
Primrose has an interest in the following facilities associated with the Additional Minor Properties.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting proposals relating to this process until 12:00 pm on Thursday June 29, 2023.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
Sayer Energy Advisors is accepting proposals from interested parties until
noon on Thursday June 29, 2023.
NOTE REGARDING A SAYER PROCESS
On each and every offering brochure generated by Sayer, you will note the sentence “Sayer Energy Advisors does not conduct a “second-round” bidding process; the intention is to attempt to conclude a sale of the Company with the party submitting the most acceptable proposal at the conclusion of the process.” What this means is that Sayer will not go back to multiple parties at the same time after bids are received, asking them all for a second bid. We determine which party submitted the most acceptable proposal and then we attempt to negotiate acceptable terms with that party in a “one-off” situation.
If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
In the extremely rare circumstance where two or more parties submit virtually identical proposals, we will contact all parties, we will advise them of this situation and we will ask them to submit a revised proposal. Once these are received, we will work with the party which has submitted the most acceptable proposal.If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
CONFIDENTIALITY AGREEMENT
Parties
wishing to receive access to the confidential information with detailed
technical information relating to this opportunity should execute the
Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, email (tpavic@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: most recent net lease operating statements, summary land information, the Reserve Report, LMR information and other relevant corporate information.
Download Confidentiality Agreement
To receive further information on the Company please contact Tom Pavic, Ben Rye or Sydney Birkett at 403.266.6133.