Offering Details
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Current Offerings / Clampett Energy Ltd.
Clampett Energy Ltd.
Corporate DivestitureBid Deadline: October 5, 2023
12:00 PM
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OVERVIEW
Clampett Energy Ltd. (“Clampett” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of the shares of the Company.
Clampett is a privately-held junior oil and natural gas company with operated working interests located in the Giroux Lake area of Alberta (the “Property”).
Clampett has minimal debt and severance obligations and total unused income tax pools of approximately $16.5 million.
Average daily sales production net to Clampett from the Property for the first half of 2023 was approximately 25 barrels of oil per day.
Operating income net to Clampett from Giroux Lake for the first half of 2023 averaged approximately $22,000 per month, or $264,000 on an annualized basis.
As of August 5, 2023, Clampett had total deemed assets of $1.1 million, deemed liabilities of ($1.4 million) and net deemed assets of ($305,688) with an LMR of 0.78. These numbers do not include Clampett’s current security deposit with the Alberta Energy Regulator ("AER") which is approximately $274,000.
The Viking A Pool at Giroux Lake is under waterflood and the Company believes the pool could be further developed by drilling horizontal infills targeting the lower permeability sands bypassed by the waterflood, which has preferentially swept the higher permeability Channel sands. The Company also believes that increasing and optimizing injection with possible injector conversions could further increase production, sweep and recovery in both the Channel and Shoreface facies.
Additional corporate information relating to Clampett will be provided to parties upon execution of a confidentiality agreement.
Clampett is a privately-held junior oil and natural gas company with operated working interests located in the Giroux Lake area of Alberta (the “Property”).
Clampett has minimal debt and severance obligations and total unused income tax pools of approximately $16.5 million.
Average daily sales production net to Clampett from the Property for the first half of 2023 was approximately 25 barrels of oil per day.
Operating income net to Clampett from Giroux Lake for the first half of 2023 averaged approximately $22,000 per month, or $264,000 on an annualized basis.
As of August 5, 2023, Clampett had total deemed assets of $1.1 million, deemed liabilities of ($1.4 million) and net deemed assets of ($305,688) with an LMR of 0.78. These numbers do not include Clampett’s current security deposit with the Alberta Energy Regulator ("AER") which is approximately $274,000.
The Viking A Pool at Giroux Lake is under waterflood and the Company believes the pool could be further developed by drilling horizontal infills targeting the lower permeability sands bypassed by the waterflood, which has preferentially swept the higher permeability Channel sands. The Company also believes that increasing and optimizing injection with possible injector conversions could further increase production, sweep and recovery in both the Channel and Shoreface facies.
Additional corporate information relating to Clampett will be provided to parties upon execution of a confidentiality agreement.
Overview Map Showing the Location of Clampett's Interests
Corporate Overview
GIROUX LAKE
Township 66, Range 21 W5
At Giroux Lake, Clampett holds a 100% working interest in P&NG rights from surface to the base of the Peace River Formation in 5.25 sections of Crown land. The Company has several wells producing oil from the Viking A Pool. The pool is currently under waterflood.
Average daily sales production net to Clampett from the Property for the first half of 2023 was approximately 25 barrels of oil per day.
Operating income net to Clampett from Giroux Lake for the first half of 2023 averaged approximately $22,000 per month, or $264,000 on an annualized basis.
At Giroux Lake, Clampett holds a 100% working interest in P&NG rights from surface to the base of the Peace River Formation in 5.25 sections of Crown land. The Company has several wells producing oil from the Viking A Pool. The pool is currently under waterflood.
Average daily sales production net to Clampett from the Property for the first half of 2023 was approximately 25 barrels of oil per day.
Operating income net to Clampett from Giroux Lake for the first half of 2023 averaged approximately $22,000 per month, or $264,000 on an annualized basis.
Giroux Lake, Alberta
Gross Production Group Plot of Clampett's Oil & Natural Gas Wells
The following map shows the outline of the Viking A Pool on Clampett’s lands at Giroux Lake.
Giroux Lake, Alberta
Viking Pool Map
Viking Pool Map
The Viking A Pool reservoir is comprised of two sandstone lithofacies which were deposited in different shallow marine environments including a Channel facies and a Shoreface facies. The two facies are in communication. The map shown above represents the reservoir with both facies combined.
The Channel facies wells have produced the majority of the oil from the Viking A Pool. The Channel facies is medium to coarse-grained sandstone with porosity of 20% and average permeability of 100-400 mD.
The Shoreface facies is comprised of fine to medium grained sandstone with porosity of 15% and average permeability of 10-70 mD.
The Company believes the pool can be further developed by drilling horizontal infill wells on its lands to access the stratified lower permeability sands. The waterflood would tend to preferentially sweep the higher permeability sands, leaving significant volumes of oil in the lower permeability sands. These lower permeability oil-bearing sands could be accessed through infill drilling with horizontal wells.
South to North Section Across the Giroux Lake Viking A Pool
West to East Section Across the Giroux Lake Viking A Pool
West to East Section Across the Giroux Lake Viking A Pool
Waterflood Optimization
The Giroux Lake Viking “A” Pool, which commenced producing in 1964, has been under waterflood since 1973. All fluid is currently being injected mainly at the 04-10-066-21W5 location, with additional volumes at 04-09-066-21W5. The Company believes that the voidage replacement ratio can be increased by injecting additional make up water into the 04-09 and 04-10 injection wells which would further increase production and recovery. In addition, optimization and reconfiguration of the waterflood, including possible injector conversions, could increase sweep and recovery in both the channel and shoreface facies.
Clampett has a water diversion permit to pump 15,000 m3 of make up water annually from the Little Smoky River.
Giroux Lake Facilities
Clampett owns the following facilities at Giroux Lake.
The Giroux Lake Viking “A” Pool, which commenced producing in 1964, has been under waterflood since 1973. All fluid is currently being injected mainly at the 04-10-066-21W5 location, with additional volumes at 04-09-066-21W5. The Company believes that the voidage replacement ratio can be increased by injecting additional make up water into the 04-09 and 04-10 injection wells which would further increase production and recovery. In addition, optimization and reconfiguration of the waterflood, including possible injector conversions, could increase sweep and recovery in both the channel and shoreface facies.
Clampett has a water diversion permit to pump 15,000 m3 of make up water annually from the Little Smoky River.
Giroux Lake Facilities
Clampett owns the following facilities at Giroux Lake.
- Battery and Water Injection Facility (02-09-066-21W5)
- vertical test separator
- vertical group separator (inlet separator)
- 100-barrel pop tank
- treater, recycle pump
- flare stack
- 1,000-barrel sales tank
- 500-barrel emulsion tank
- 400-barrel water surge tank
- triplex pump
- 750-barrel freshwater cold storage tank
- filtration/charge pump
- filter pot and chemical treatment system
- Satellite and Test Separator Station (04-10-066-21W5)
- vertical test separator
- 100-barrel pop tank
- Water Injection Facility (02-08-066-21W5)
- pumping building (inactive)
- water storage tank and make up water reservoir.
Fresh water is pumped from the river to a 28,000 m3 reservoir at 02-08, then pumped from reservoir to 750-barrel freshwater cold storage tank at the 02-09 battery, then commingled with produced water and injected.
Giroux Lake Marketing
The Company has an evergreen crude oil purchase agreement with Trafigura Canada General Partnership where it sells its oil from the 02-09-066-21W5 facility to the Fox Creek Truck Terminal 957, Peace Valleyview Truck Terminal 857, the TER Valleyview Truck Terminal and the Secure Fox Creek Terminal.
Giroux Lake Reserves
The Company does not have a current third-party reserve report.
Giroux Lake LMR as of August 5, 2023
As of August 5, 2023, Clampett had total deemed assets of $1.1 million, deemed liabilities of ($1.4 million) and net deemed assets of ($305,688) with an LMR of 0.78. These numbers do not include Clampett’s current security deposit with the AER which is approximately $274,000.
Giroux Lake Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting proposals relating to this process until 12:00 pm on Thursday October 5, 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 October 5, 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 (brye@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: most recent net lease operating statements, summary land information, LMR information and other relevant corporate and technical information.
Download Confidentiality Agreement
To receive further information on the Company please contact Ben Rye, Tom Pavic or Sydney Birkett at 403.266.6133.