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Current Offerings   /   Rife Resources Ltd.



Rife Resources Ltd.

Property Divestiture
Bid Deadline: June 27, 2024
12:00 PM
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OVERVIEW

Rife Resources Ltd. (“Rife” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of certain of Rife’s non-core oil and natural gas working interests located in Alberta and British Columbia (the “Properties”).
 
The Properties consist of operated and non-operated working interests which are located throughout Alberta and British Columbia. For marketing purposes, the Properties are separated into the following geographical packages: Central, Western, Southeast, Peace River Arch, Northern and Northwest.
 
Average production net to Rife from the Properties in the fourth quarter of 2023 was 57 boe/d, consisting of 202 Mcf/d of natural gas and 23 barrels of oil and natural gas liquids per day.
 
Operating income net to Rife from the Properties for the fourth quarter of 2023 was approximately $50,000 or approximately $200,000 on an annualized basis.
 
As of May 4, 2024, the Properties had a net deemed asset value in Alberta ($551,163) (deemed assets of $736,516 and deemed liabilities of $1.3 million), with an LMR ratio of 0.57. Rife does not operate any wells in British Columbia.


 
Overview Map Showing the Location of the Divestiture Properties

 
LMR Summary

Alberta

As of May 4, 2024, the Properties had a net deemed asset value in Alberta ($551,163) (deemed assets of $736,516 and deemed liabilities of $1.3 million), with an LMR ratio of 0.57.


British Columbia

Rife does not operate any wells in British Columbia.

Facilities Overview

Rife holds various working interests in facilities associated with the Properties. Details on Rife’s facility interests are available in the virtual data room for parties that execute a confidentiality agreement.

Seismic

The Company does not own any seismic associated with the Properties.

Reserves Overview

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Rife modified the Trimble Report specifically for this divestiture.

Trimble estimated that as at December 31, 2023 the Properties contained remaining proved plus probable reserves of 820 MMcf of natural gas and 71,000 barrels of oil and natural gas liquids (207,000 boe), with an estimated net present value of approximately $1.3 million using forecast pricing at a 10% discount.

 


 
Well List

Click here to download the complete well list in Excel.

WESTERN PACKAGE

In the Western Package, Rife has various working interests located in the Minnehik, Pembina, Willesden Green and Wilson Creek areas as shown on the following map.
 

 
Western LMR

As of May 4, 2024, Rife’s deemed net asset value for the Western Package was ($83,755) (deemed assets of $0, and deemed liabilities of $83,755), with an LMR ratio of 0.00.

 

WILSON CREEK

Township 42, Range 4 W5

At Wilson Creek, Rife holds a 47% working interest in one producing Glauconitic Sandstone Formation natural gas well at BEC Hz WilsonCk 100/02-26-042-04W5/0 operated by Tourmaline Oil Corp.
 
Average production net to Rife from the Wilson Creek property for the fourth quarter of 2023 was approximately 38 Mcf/d of natural gas and eight bbl/d of natural gas liquids (14 boe/d).
 
Operating income net to Rife from Wilson Creek for the fourth quarter of 2023 was $15,000 or $60,000 on an annualized basis.

 


Wilson Creek, Alberta
Gross Production Plot of BEC Hz WilsonCk 100/02-26-042-04W5/0


 
Wilson Creek Facilities

Details on Rife’s facility interests are available in the virtual data room for parties that execute a confidentiality agreement.

Wilson Creek Reserves

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Rife modified the Trimble Report specifically for this divestiture.

Trimble estimated that as at December 31, 2023 the Wilson Creek property contained remaining proved plus probable reserves of 159 MMcf of natural gas and 25,000 barrels of natural gas liquids (51,000 boe), with an estimated net present value of approximately $171,000 using forecast pricing at a 10% discount.

 


 
Wilson Creek LMR

The Company does not operate any wells at Wilson Creek.

Wilson Creek Well List

Click here to download the complete well list in Excel.

WILLESDEN GREEN

Township 41, Range 5 W5

At Willesden Green, Rife holds non-operated working interests ranging from 9%-18% in four producing Glauconitic Sandstone Formation natural gas wells at BEC Hz WillGr 100/13-21-041-05W5/0, Bonavista Hz WillGr 100/15-21-041-05W5/0, BEC Hz WillGr 102/15-21-041-05W5/00 and BEC Hz WillGr 100/16-21-041-05W5/0 operated by Tourmaline Oil Corp.
 
Average production net to Rife from the Willesden Green property for the fourth quarter of 2023 was approximately 36 Mcf/d of natural gas and six bbl/d of oil and natural gas liquids (12 boe/d).
 
Operating income net to Rife from Willesden Green for the fourth quarter of 2023 was $9,300 or approximately $37,200 on an annualized basis.

 


Willesden Green, Alberta
Gross Production Group Plot of Rife's Producing Oil & Natural Gas Wells


 
Willesden Green Facilities

Details on Rife’s facility interests are available in the virtual data room for parties that execute a confidentiality agreement.

Willesden Green Reserves

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Rife modified the Trimble Report specifically for this divestiture.
 
Trimble estimated that as at December 31, 2023 the Willesden Green property contained remaining proved plus probable reserves of 63 MMcf of natural gas and 9,000 barrels of natural gas liquids (20,000 boe), with an estimated net present value of approximately $13,000 using forecast pricing at a 10% discount. 

 


 
Willesden Green LMR

The Company does not operate any wells at Willesden Green.

Willesden Green Well List

Click here to download the complete well list in Excel.

MINNEHIK/PEMBINA

Township 44, Range 4 W5

At Minnehik/Pembina, Rife holds various operated and non-operated working interests. Production from Minnehik/Pembina is from Rife’s 20.1%-32.6% non-operated working interests in five producing Cardium wells Clearview Pembina 100/01-18-044-04W5/0, Clearview Pembina 102/15-30-044-04W5/0, Clearview Pembina 100/13-08-044-04W5/0, Clearview Pembina 100/13-30-044-04W5/0 and Clearview Pembina 102/16-29-044-04W5/00 operated by Clearview Resources Ltd.
 
Average production net to Rife from the Minnehik/Pembina property for the fourth quarter of 2023 was approximately 19 Mcf/d of natural gas and seven bbl/d of oil and natural gas liquids (10 boe/d).
 
Operating income net to Rife from Minnehik/Pembina for the fourth quarter of 2023 was approximately $28,300 or approximately $113,000 on an annualized basis.

 


Minnehik/Pembina, Alberta
Gross Production Group Plot of Rife's Producing Oil & Natural Gas Wells


 
Minnehik/Pembina Facilities

Details on Rife’s facility interests are available in the virtual data room for parties that execute a confidentiality agreement.

Minnehik/Pembina Reserves

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Rife modified the Trimble Report specifically for this divestiture. 
 
Trimble estimated that as at December 31, 2023 the Minnehik/Pembina property contained remaining proved plus probable reserves of 8,000 barrels of oil and 20 MMcf of natural gas (12,000 boe), with an estimated net present value of approximately $332,000 using forecast pricing at a 10% discount.

 


 
Minnehik/Pembina LMR

As of May 4, 2024, Rife’s deemed net asset value for the Minnehik/Pembina property was ($83,755) (deemed assets of $0 million and deemed liabilities of $83,755), with an LMR ratio of 0.00.

 

Minnehik/Pembina Well List

Click here to download the complete well list in Excel.

NORTHWEST PACKAGE

In the Northwest Package, the Company holds various working interests in the Bigstone, Fir and Kakwa areas of Alberta.
 

 
Northwest LMR

As of May 4, 2024, Rife’s deemed net asset value for the Northwest Package was $610,996 (deemed assets of $736,516 and deemed liabilities of $125,520), with an LMR ratio of 5.87.

 

BIGSTONE

Township 60, Range 21 W5

At Bigstone, Rife holds a 50% operated interest in one producing Gething natural gas well Rife Fir 100/100/03-25-060-21W5/0.

Average production net to Rife from the Bigstone property for the fourth quarter of 2023 was approximately 89 Mcf/d of natural gas and three bbl/d of oil and natural gas liquids (18 boe/d).

Operating income net to Rife from Bigstone for the fourth quarter of 2023 was approximately $20,000 or $80,000 on an annualized basis.

 


Bigstone, Alberta
Gross Production Plot of Rife Fir 100/03-25-060-21W5/0


 
Bigstone Facilities

Details on Rife’s facility interests are available in the virtual data room for parties that execute a confidentiality agreement.

Bigstone Reserves

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Rife modified the Trimble Report specifically for this divestiture. 
 
Trimble estimated that as at December 31, 2023 the Bigstone property contained remaining proved plus probable reserves of 394 MMcf of natural gas and 14,000 barrels of natural gas liquids (80,000 boe), with an estimated net present value of approximately $493,000 using forecast pricing at a 10% discount.

 


 
Bigstone LMR

As of May 4, 2024, Rife’s deemed net asset value for the Bigstone property was $640,246 (deemed assets of $736,516 and deemed liabilities of $96,270), with an LMR ratio of 7.65.

 

Bigstone Well List

Click here to download the complete well list in Excel.

CENTRAL PACKAGE

In the Central Package, Rife has various working interests primarily in the Bashaw, Beaverhill, Bruce, Donalda, Dorenlee, Ferintosh, Holden, Kelsey, Majeau, Peavy and Provost areas as shown on the following map.
 

 
Central LMR

As of May 4, 2024, Rife’s deemed net asset value for the Central Package was ($939,154) (deemed assets of $0, and deemed liabilities of $939,154), with an LMR ratio of 0.00.

 

BRUCE

Township 46-49, Range 15-18 W5

At Bruce, Rife has operated and non-operated interests in several natural gas wells. Production at Bruce is from three producing wells Pine Cliff Bruce 100/10-04-049-17W4/0, Pine Cliff Bruce 100/11-06-048-15W4/02 and Pine Cliff Bruce 100/12-36-047-16W4/00 operated by Pine Cliff Energy Ltd.
 
Average production net to Rife from the Bruce property for the fourth quarter of 2023 was approximately 17 Mcf/d of natural gas (3 boe/d).
 
Operating income net to Rife from Bruce for the fourth quarter of 2023 was $300 or $1,200 on an annualized basis.

 


Bruce, Alberta
Gross Production Group Plot of Rife's Producing Natural Gas Wells


 
Bruce Facilities

Details on Rife’s facility interests are available in the virtual data room for parties that execute a confidentiality agreement.

Bruce Reserves

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Rife modified the Trimble Report specifically for this divestiture.
 
Trimble estimated that as at December 31, 2023 the Bruce property contained remaining proved plus probable reserves of 38 MMcf of natural gas (6,000 boe), with an estimated net present value of approximately $9,000 using forecast pricing at a 10% discount.

 


 
Bruce LMR

As of May 4, 2024, Rife’s deemed net asset value for the Bruce property was ($149,618) (deemed assets of $0 and deemed liabilities of $149,618), with an LMR ratio of 0.00.

 

Bruce Well List

Click here to download the complete well list in Excel.

SOUTHEAST PACKAGE

In the Southeast Package, Rife has various operated and non-operated working interests located in the Bow Island, Eyremore, Grand Forks, Majorville, Retlaw/Turin and Vauxhall areas as shown on the following map.
 

 
Southeast LMR

As of May 4, 2024, Rife’s deemed net asset value for the Southeast Package was ($33,000) (deemed assets of $0, and deemed liabilities of $33,000), with an LMR ratio of 0.00.

 

MAJORVILLE

Township 18-19, Range 18-19 W4

At Majorville, Rife holds a 11.7% non-operated working interest in two producing Medicine Hat/Milk River natural gas wells CNRL Eyrmor 100/06-12-019-19W4/0 and CNRL Eyrmor 100/08-12-019-19W4/0 operated by Canadian Natural Resources Limited.
 
Average production net to Rife from the Majorville property for the fourth quarter of 2023 was approximately three Mcf/d of natural gas (1 boe/d).

 


Majorville, Alberta
Gross Production Group Plot of Rife's Producing Natural Gas Wells


 
Majorville Facilities

Details on Rife’s facility interests are available in the virtual data room for parties that execute a confidentiality agreement.

Majorville Reserves

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2023, using Sproule Associates Limited’s November 30, 2023 forecast pricing. Rife modified the Trimble Report specifically for this divestiture. 
 
Trimble estimated that as at December 31, 2023 the Majorville property contained remaining proved plus probable reserves of 3 MMcf of natural gas (500 boe), with an estimated net present value of approximately ($4,000) using forecast pricing at a 10% discount.

 


 
Majorville LMR

The Company does not operate any wells at Majorville.

Majorville Well List

Click here to download the complete well list in Excel.

NORTHERN PACKAGE

In the Northern Package, the Company holds various working interests in the Hangst, Meyer Lake and Smith areas of Alberta.
 
There is currently no production from the Northern Package.

 

 
Northern LMR

As of May 4, 2024, Rife’s deemed net asset value for the Northern Package was ($23,875) (deemed assets of $0, and deemed liabilities of $23,875), with an LMR ratio of 0.00.

 

PEACE RIVER ARCH PACKAGE

In the Peace River Arch Package, Rife holds various working interests in several areas including Altia Doe, Cecil, Cranberry, Hamburg, Peace, Rainbow and Virgo areas of Alberta and the Rigel and Stoddart areas of British Columbia.
 
There is currently no production from the Peace River Arch Package.

 

 
Peace River Arch LMR

As of May 4, 2024, Rife’s deemed net asset value for the Peace River Arch Package was ($82,375) (deemed assets of $0, and deemed liabilities of $82,375), with an LMR ratio of 0.00.

 

PROCESS & TIMELINE

Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday June 27, 2024. 


 
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
transactions with the parties submitting the most acceptable proposals at the conclusion of the process.

Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday June 27, 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.

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, mail (brye@sayeradvisors.com) or fax (403.266.4467).

Included in the confidential information is the following: summary land information, the Trimble Report, LMR information, most recent net operations summary, detailed facilities information 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.

 

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