Offering Details
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Current Offerings / Raymark Lands Ltd.
Raymark Lands Ltd.
Royalty DivestitureBid Deadline: October 12, 2023
12:00 PM
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OVERVIEW
Raymark Lands Ltd. (“Raymark” or the “Company”) has engaged Sayer Energy Advisors to assist it with the sale of certain oil, condensate and natural gas royalty interests located in the Kerrobert, Edam and Golden Lake areas of Saskatchewan (the “Properties”).Average daily royalty production net to Raymark from the Properties for the four months ended April 30, 2023 was approximately 13 boe/d, consisting of 12 barrels of oil per day natural gas liquids and four Mcf/d of natural gas.
Royalty income net to Raymark from the Properties for the four months ended April 30, 2023 was approximately $91,300, or $273,900 on an annualized basis.
The Properties consist of Gross Overriding Royalty (“GORR”) interests with no deductions. Raymark holds a 10% GORR interest at Kerrobert, a 10%-15%, 1/150 GORR interest at Edam, and a 10%-15% GORR interest at Golden Lake.
Further information relating to the Properties will be available in the virtual data room to parties that execute a confidentiality agreement.
The Company will require separate bids for each of the Properties.
Overview Map Showing the Location of the Divestiture Properties
Production Overview
Average daily royalty production net to Raymark from the Properties for the four months ended April 30, 2023 was approximately 13 boe/d, consisting of 12 barrels of oil per day natural gas liquids and four Mcf/d of natural gas.
Royalty income net to Raymark from the Properties for the four months ended April 30, 2023 was approximately $91,300, or $273,900 on an annualized basis.
Gross Production Group Plot of the Properties
LMR Overview
The Company does not operate any wells or facilities related to the Properties.
Reserves Overview
The Company does not have a third-party reserve report relating to the Properties.
Facilities Overview
The Company does not have an interest in any facilities related to the Properties.
GOLDEN LAKE
Township 48, Range 23 W3At Golden Lake, Raymark holds a 10%-15% 1/150 GORR interest on one LSD of land. The property consists of heavy oil production from eight contributing leg horizontal legs in the Cummings Formation. Production is from the newly drilled multi-leg horizontal wells Baytex Hz 01/08-04-048-23W3 and Baytex Hz 04/08-04-048-23W3/0 owned and operated by Baytex Energy Ltd.
The 101/08-04 well has the primary producing horizontal leg at 101/08-04-048-23W3/00 with additional contributing horizontal legs at 102/08-04-048-23W3/02, 103/08-04-048-23W3/03 and 101/07-04-048-23W3/04.
The 104/08-04 well has the primary producing horizontal leg at 104/08-04-048-23W3/00 with additional contributing horizontal legs at 102/01-04-048-23W3/02, 103/01-04-048-23W3/03, and 104/01-04-048-23W3/04.
Average daily royalty production net to Raymark from Golden Lake for the four months ended April 30, 2023 was approximately seven barrels of heavy oil per day.
Royalty income net to Raymark from Golden Lake for the first four months of 2023 was approximately $49,300, or $147,900 on an annualized basis.
Golden Lake, Saskatchewan - Gross Production Group Plot
Heavy oil production from the multi-leg horizontal Cummings wells at Golden Lake commenced in September 2022.
Golden Lake Well List
Click here to download the complete well list in Excel.
KERROBERT
Township 33, Range 24 W3At Kerrobert, Raymark holds a 10% GORR interest in one quarter section of land in the southeast of Section 05-033-24W3. The property consists of light oil, condensate and natural gas production from the Viking Formation from three horizontal wells owned and operated by Baytex Energy Ltd. The three wells commenced producing in March 2022.
One additional Viking drilling location has been identified and licensed at 05-033-24W3 by Baytex.
Average daily royalty production net to Raymark from Kerrobert for the four months ended April 30, 2023 was approximately four boe/d, consisting of approximately three barrels of light oil per day, trace amounts of condensate and natural gas liquids per day and four Mcf/d of natural gas.
Royalty income net to Raymark from Kerrobert for the first four months of 2023 was approximately $32,500, or $97,500 on an annualized basis.
Kerrobert, Saskatchewan - Gross Production Group Plot
The wells Baytex Kerrobert Hz 01/09-05-033-24W3/0, Baytex Kerrobert 102 Hz 02/15-05-033-24W3/0 and Baytex Kerrobert 102 Hz 02/16-05-033-24W3/0 commenced production in March 2022. Light oil, condensate and natural gas from these three wells is produced to a multi-well battery.
Kerrobert Well List
Click here to download the complete well list in Excel.
EDAM
Township 48, Range 20 W3At Edam, Raymark holds a 10%-15%, 1/150 GORR interest on three LSDs of land. Production from the property consists of heavy oil commingled from the Waseca and Colony formations from the vertical well Hawk Edam North 11/03-34-048-20W3/2 owned and operated by Courser Energy Ltd. There are also two suspended wells at 111/05-34-048-20W43 and 111/06-34-048-20W3.
Average daily royalty production net to Raymark from Edam for the four months ended April 30, 2023 was approximately two barrels of heavy oil per day.
Royalty income net to Raymark from Edam for the first four months of 2023 was approximately $9,500, or $28,500 on an annualized basis.
Hawk Edam North DD 1A5-34-3A5-34-48-20 (11/03-34-048-20W3/2) - Gross Production Plot
The well Hawk Edam North DD 1A5-34-3A5-34-48-20 (11/03-34-048-20W3/2) commenced commingled production in March 2019 but was shut-in due to COVID-19 in March 2020. Production operations recommenced in May 2021. Heavy oil from the well is produced to a single well battery.
Edam Seismic
At Edam, the Company has 4.8 kilometres of 2D trade seismic over its lands as shown on the following plat.
Edam Well List
Click here to download the complete well list in Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday October 12, 2023. The Company will require separate bids for each of the Properties.
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 cash offers from interested parties until
noon on Thursday October 12, 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 Properties 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: summary land information, most recent royalty income statements and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Properties please contact Ben Rye, Tom Pavic or Sydney Birkett at 403.266.6133.