Offering Details
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Current Offerings / Aeneid Exploration Inc.
Aeneid Exploration Inc.
Property DivestitureBid Deadline: June 6, 2024
12:00 PM
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OVERVIEW
Aeneid Exploration Inc. (“Aeneid” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of all of its oil and natural gas interests. Aeneid’s main producing properties are located in the Carmangay and Mitsue areas of Alberta as well as non-producing properties located in the Alderson, Gift and Sugden areas of Alberta (the “Properties”).
Average daily sales production net to Aeneid from the Properties for the year ended December 31, 2023 was approximately 89 boe/d, consisting of approximately 89 bbl/d of oil and one Mcf/d of natural gas.
Operating income net to Aeneid from the Properties for the year ended December 31, 2023 was approximately $936,000 which includes processing income detailed below.
The Company generated approximately $330,000 in processing income in 2023 with 1.0 MMcf/d of third-party natural gas production going through Aeneid’s facility at 16-31-073-05W5 and 1,000 bbl/d of third-party oil production. The facilities have room for additional capacity and upside in additional third-party revenues.
As of March 2, 2024, the Properties had a deemed net asset value of ($2.0 million) (deemed assets of $5.0 million and deemed liabilities of $7.0 million), with an LMR ratio of 0.71.
Average daily sales production net to Aeneid from the Properties for the year ended December 31, 2023 was approximately 89 boe/d, consisting of approximately 89 bbl/d of oil and one Mcf/d of natural gas.
Operating income net to Aeneid from the Properties for the year ended December 31, 2023 was approximately $936,000 which includes processing income detailed below.
The Company generated approximately $330,000 in processing income in 2023 with 1.0 MMcf/d of third-party natural gas production going through Aeneid’s facility at 16-31-073-05W5 and 1,000 bbl/d of third-party oil production. The facilities have room for additional capacity and upside in additional third-party revenues.
As of March 2, 2024, the Properties had a deemed net asset value of ($2.0 million) (deemed assets of $5.0 million and deemed liabilities of $7.0 million), with an LMR ratio of 0.71.
Overview Map Showing the Location of the Divestiture Properties
Production Overview
Average daily sales production net to Aeneid from the Properties for the year ended December 31, 2023 was approximately 89 boe/d, consisting of approximately 89 bbl/d of oil and one Mcf/d of natural gas as outlined below.
Operating income net to Aeneid from the Properties for the year ended December 31, 2023 was approximately $936,000 which includes processing income detailed below.
The Company generated approximately $330,000 in processing income in 2023 with 1.0 MMcf/d of third-party natural gas production going through Aeneid’s facility at 16-31-073-05W5 and 1,000 bbl/d of third-party oil production. The facilities have room for additional capacity and upside in additional third-party revenues.
Average daily sales production net to Aeneid from the Properties for the year ended December 31, 2023 was approximately 89 boe/d, consisting of approximately 89 bbl/d of oil and one Mcf/d of natural gas as outlined below.
Operating income net to Aeneid from the Properties for the year ended December 31, 2023 was approximately $936,000 which includes processing income detailed below.
The Company generated approximately $330,000 in processing income in 2023 with 1.0 MMcf/d of third-party natural gas production going through Aeneid’s facility at 16-31-073-05W5 and 1,000 bbl/d of third-party oil production. The facilities have room for additional capacity and upside in additional third-party revenues.
Gross Production Group Plot of Aeneid's Oil & Natural Gas Wells
LMR Summary
As of March 2, 2024, the Properties had a deemed net asset value of ($2.0 million) (deemed assets of $5.0 million and deemed liabilities of $7.0 million), with an LMR ratio of 0.71.
As of March 2, 2024, the Properties had a deemed net asset value of ($2.0 million) (deemed assets of $5.0 million and deemed liabilities of $7.0 million), with an LMR ratio of 0.71.
Seismic Overview
The Company has ownership in 3D seismic data relating to the Properties. Information relating to the seismic ownership will be made available in the data room to parties that execute a Confidentiality Agreement.
Reserves Overview
Aeneid prepared a reserves evaluation of the Properties (the “Reserve Report”). The Reserve Report is effective January 1, 2024 based on Aeneid’s internal price forecast.
The Company estimates that, as at January 1, 2024, the Properties property contained remaining proved plus probable reserves of 1.8 million barrels of oil, with an estimated net present value of $34.1 million using forecast pricing at a 10% discount.
The Company has ownership in 3D seismic data relating to the Properties. Information relating to the seismic ownership will be made available in the data room to parties that execute a Confidentiality Agreement.
Reserves Overview
Aeneid prepared a reserves evaluation of the Properties (the “Reserve Report”). The Reserve Report is effective January 1, 2024 based on Aeneid’s internal price forecast.
The Company estimates that, as at January 1, 2024, the Properties property contained remaining proved plus probable reserves of 1.8 million barrels of oil, with an estimated net present value of $34.1 million using forecast pricing at a 10% discount.
MITSUE
Township 73-76, Range 3-6 W5
At Mitsue, Aeneid holds working interests ranging from 24.75%-80% in approximately 54.5 sections of Crown land. The Company has identified nine horizontal drilling locations in the Gilwood A Formation at Mitsue.
Average daily production net to Aeneid from the Mitsue property for calendar year 2023 was approximately 77 boe/d, consisting of 77 barrels of oil per day and one Mcf/d of natural gas.
Operating income net to Aeneid from Mitsue for the year ended December 31, 2023 was approximately $1.1 million including approximately $330,000 in processing income.
At Mitsue, Aeneid holds working interests ranging from 24.75%-80% in approximately 54.5 sections of Crown land. The Company has identified nine horizontal drilling locations in the Gilwood A Formation at Mitsue.
Average daily production net to Aeneid from the Mitsue property for calendar year 2023 was approximately 77 boe/d, consisting of 77 barrels of oil per day and one Mcf/d of natural gas.
Operating income net to Aeneid from Mitsue for the year ended December 31, 2023 was approximately $1.1 million including approximately $330,000 in processing income.
Mitsue, Alberta
Gross Production Group Plot
Gilwood Formation
At Mitsue, the Gilwood reservoir is comprised of medium to fine-grained sandstones which were deposited in the Middle Devonian period as sediments from a braided fluvial system. The reservoir trap is interpreted as a combination of stratigraphy and structure.
The following map shows the Phi*H of each different facies.
At Mitsue, the Gilwood reservoir is comprised of medium to fine-grained sandstones which were deposited in the Middle Devonian period as sediments from a braided fluvial system. The reservoir trap is interpreted as a combination of stratigraphy and structure.
The following map shows the Phi*H of each different facies.
Fluvial Facies average Phi*H: 0.76
Deltaic Facies average Phi*H: 0.26
Prodelta Facies average Phi*H: 0.10
Deltaic Facies average Phi*H: 0.26
Prodelta Facies average Phi*H: 0.10
Exall Et Al Hz Mitsue 102/13-29-074-05W5
Gilwood Formation Type Log
Gilwood Formation Type Log
Mitsue Facilities
At Mitsue, Aeneid has ownership in the following facilities.
At Mitsue, Aeneid has ownership in the following facilities.
The Company generated approximately $330,000 in processing income in 2023 with 1.0 MMcf/d of third-party natural gas production going through Aeneid’s facility at 16-31-073-05W5 and 1,000 bbl/d of third-party oil production. The facilities have room for additional capacity and upside in additional third-party revenues.
Mitsue Marketing
Oil is sold to Enerchem International Inc. at the Slave Lake Terminal from 16-31-073-05W5 via LACT metering unit and pipeline.
Natural gas is sold to Canadian Natural Resources Limited at Nipisi at 01-06-074-05W5 and Enerchem at 16-31-073-05W5.
Mitsue Reserves
Aeneid prepared a reserves evaluation of the Properties (the “Reserve Report”). The Reserve Report is effective January 1, 2024 based on Aeneid’s internal price forecast.
The Company estimates that, as at January 1, 2024, the Mitsue property contained remaining proved plus probable reserves of approximately 1.5 million barrels of oil, with an estimated net present value of $29.8 million using forecast pricing at a 10% discount.
Mitsue Marketing
Oil is sold to Enerchem International Inc. at the Slave Lake Terminal from 16-31-073-05W5 via LACT metering unit and pipeline.
Natural gas is sold to Canadian Natural Resources Limited at Nipisi at 01-06-074-05W5 and Enerchem at 16-31-073-05W5.
Mitsue Reserves
Aeneid prepared a reserves evaluation of the Properties (the “Reserve Report”). The Reserve Report is effective January 1, 2024 based on Aeneid’s internal price forecast.
The Company estimates that, as at January 1, 2024, the Mitsue property contained remaining proved plus probable reserves of approximately 1.5 million barrels of oil, with an estimated net present value of $29.8 million using forecast pricing at a 10% discount.
Mitsue LMR as of March 2, 2024
As of March 2, 2024, the Mitsue property had a deemed net asset value of $806,059 (deemed assets of $4.4 million and deemed liabilities of $3.6 million), with an LMR ratio of 1.22.
As of March 2, 2024, the Mitsue property had a deemed net asset value of $806,059 (deemed assets of $4.4 million and deemed liabilities of $3.6 million), with an LMR ratio of 1.22.
Mitsue Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
CARMANGAY
Township 11-13, Range 21-22 W4
At Carmangay, Aeneid holds largely a 100% working interest in 11.25 sections of Crown land and 2.25 sections of Freehold land. Production at Carmangay is from the Sunburst and Glauconitic Sandstone formations. The Company has identified four infill drilling locations in the Sunburst Formation and four additional drilling locations targeting oil in the Upper Bow Island Formation.
Average daily production net to Aeneid from Carmangay for calendar year 2023 was approximately 12 bbl/d oil.
Operating income net to Aeneid from Carmangay for the year ended December 31, 2023 was approximately ($119,000).
At Carmangay, Aeneid holds largely a 100% working interest in 11.25 sections of Crown land and 2.25 sections of Freehold land. Production at Carmangay is from the Sunburst and Glauconitic Sandstone formations. The Company has identified four infill drilling locations in the Sunburst Formation and four additional drilling locations targeting oil in the Upper Bow Island Formation.
Average daily production net to Aeneid from Carmangay for calendar year 2023 was approximately 12 bbl/d oil.
Operating income net to Aeneid from Carmangay for the year ended December 31, 2023 was approximately ($119,000).
Carmangay, Alberta
Gross Production Group Plot
The following well logs from the well Houston 00/06-05-012-21W4/00 show the reservoir in the Bow Island Formation at Carmangay.
Houston 00/06-05-012-21W4/00
Bow Island Formation Type Log
Bow Island Formation Type Log
Carmangay Facilities
At Carmangay, Aeneid has ownership in the following facilities.
At Carmangay, Aeneid has ownership in the following facilities.
Carmangay Marketing
Oil from Carmangay is sold to Acme Energy Marketing Ltd. at 15-22-013-22W4.
Carmangay Reserves
Aeneid prepared a reserves evaluation of the Properties (the “Reserve Report”). The Reserve Report is effective January 1, 2024 based on Aeneid’s internal price forecast.
The Company estimates that, as at January 1, 2024, the Carmangay property contained remaining proved plus probable reserves of 376,000 barrels of oil, with an estimated net present value of $4.3 million using forecast pricing at a 10% discount.
Oil from Carmangay is sold to Acme Energy Marketing Ltd. at 15-22-013-22W4.
Carmangay Reserves
Aeneid prepared a reserves evaluation of the Properties (the “Reserve Report”). The Reserve Report is effective January 1, 2024 based on Aeneid’s internal price forecast.
The Company estimates that, as at January 1, 2024, the Carmangay property contained remaining proved plus probable reserves of 376,000 barrels of oil, with an estimated net present value of $4.3 million using forecast pricing at a 10% discount.
Carmangay LMR as of March 2, 2024
As of March 2, 2024, the Carmangay property had a deemed net asset value of ($2.8 million) (deemed assets of $526,221 and deemed liabilities of $3.3 million), with an LMR ratio of 0.16.
As of March 2, 2024, the Carmangay property had a deemed net asset value of ($2.8 million) (deemed assets of $526,221 and deemed liabilities of $3.3 million), with an LMR ratio of 0.16.
Carmangay Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
MISCELLANEOUS PROPERTIES
ALDERSON
Township 14, Range 13 W4
In addition to it lands at Carmangay and Mitsue, Aeneid holds a 100% working interest in the suspended Lower Mannville oil well Atlas Alderson 02/09-33-014-13W5/00 as shown on the following plat.
Township 14, Range 13 W4
In addition to it lands at Carmangay and Mitsue, Aeneid holds a 100% working interest in the suspended Lower Mannville oil well Atlas Alderson 02/09-33-014-13W5/00 as shown on the following plat.
GIFT
Township 78, Range 11 W5
In the Gift area, Aeneid holds interests in three abandoned wells including a 24.75% working interest in the abandoned well Journey Energy Gift 00/09-31-078-11W4/0 operated by Journey Energy Inc. and a 100% working interest in the abandoned wells Kingsmere Et Al 102 Gift 102/09-34-078-11W5/00 and Kingsmere Et Al Gift 00/05-31-078-11W5/00 as shown on the following plat.
Township 78, Range 11 W5
In the Gift area, Aeneid holds interests in three abandoned wells including a 24.75% working interest in the abandoned well Journey Energy Gift 00/09-31-078-11W4/0 operated by Journey Energy Inc. and a 100% working interest in the abandoned wells Kingsmere Et Al 102 Gift 102/09-34-078-11W5/00 and Kingsmere Et Al Gift 00/05-31-078-11W5/00 as shown on the following plat.
SUGDEN
Township 61, Range 08 W4
In the Sudgen area, Aeneid holds a 60% working interest in the abandoned well Challenger Sugden 00/16-18-061-08W4/05, operated by Challenger Development Corp., as shown on the following plat.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday June 6, 2024.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
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 June 6, 2024.
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 information relating to this opportunity should execute the Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, mail (brye@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: summary land information, the Reserve Report, LMR information, most recent net operations summary, 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.