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Under Review / Canpar Holdings Ltd.
Canpar Holdings Ltd.
Property DivestitureBid Deadline: June 27, 2024
12:00 PM
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OVERVIEW
Canpar Holdings Ltd. (“Canpar” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its remaining oil and natural gas working interests located in Alberta, British Columbia and Saskatchewan (the “Properties”).
The Properties consist of mainly non-operated working interests and certain operated working interests which are located throughout Alberta, British Columbia and Saskatchewan. For marketing purposes, the Properties are separated into the following geographical packages for this offering: Central AB, Northern AB, Peace River Arch AB, Southern AB, Western AB, Northeast BC, West Central SK and Southwest SK.
Average production net to Canpar from the Properties in the fourth quarter of 2023 was nine boe/d, consisting of 37 Mcf/d of natural gas and minor volumes of natural gas liquids per day.
Operating income net to Canpar from the producing properties for the fourth quarter of 2023 was approximately $630 or $2,520 on an annualized basis.
As of May 4, 2024, Canpar’s net deemed asset value in Alberta was ($56,500) (deemed assets of $0 and deemed liabilities of $56,500), with an LMR ratio of 0.00.
As of April 28, 2024, Canpar’s net deemed asset value in Saskatchewan was ($88,800) (deemed assets of $0 and deemed liabilities of $88,800), with an LMR ratio of 0.00.
The Company does not operate any wells in British Columbia.
The Properties consist of mainly non-operated working interests and certain operated working interests which are located throughout Alberta, British Columbia and Saskatchewan. For marketing purposes, the Properties are separated into the following geographical packages for this offering: Central AB, Northern AB, Peace River Arch AB, Southern AB, Western AB, Northeast BC, West Central SK and Southwest SK.
Average production net to Canpar from the Properties in the fourth quarter of 2023 was nine boe/d, consisting of 37 Mcf/d of natural gas and minor volumes of natural gas liquids per day.
Operating income net to Canpar from the producing properties for the fourth quarter of 2023 was approximately $630 or $2,520 on an annualized basis.
As of May 4, 2024, Canpar’s net deemed asset value in Alberta was ($56,500) (deemed assets of $0 and deemed liabilities of $56,500), with an LMR ratio of 0.00.
As of April 28, 2024, Canpar’s net deemed asset value in Saskatchewan was ($88,800) (deemed assets of $0 and deemed liabilities of $88,800), with an LMR ratio of 0.00.
The Company does not operate any wells in British Columbia.
Overview Map Showing the Location of the Divestiture Properties
Production & NOI Overview
Average production net to Canpar from the Properties in the fourth quarter of 2023 was nine boe/d, consisting of 37 Mcf/d of natural gas and minor volumes of natural gas liquids per day.
Operating income net to Canpar from the producing properties for the fourth quarter of 2023 was approximately $630 or $2,520 on an annualized basis.
Average production net to Canpar from the Properties in the fourth quarter of 2023 was nine boe/d, consisting of 37 Mcf/d of natural gas and minor volumes of natural gas liquids per day.
Operating income net to Canpar from the producing properties for the fourth quarter of 2023 was approximately $630 or $2,520 on an annualized basis.
Gross Production Group Plot of Canpar's Natural Gas Wells
LMR Summary
Alberta
As of May 4, 2024, Canpar’s net deemed asset value in Alberta was ($56,500) (deemed assets of $0 and deemed liabilities of $56,500), with an LMR ratio of 0.00.
Alberta
As of May 4, 2024, Canpar’s net deemed asset value in Alberta was ($56,500) (deemed assets of $0 and deemed liabilities of $56,500), with an LMR ratio of 0.00.
The Company operates two abandoned wells located in the Central AB package.
Saskatchewan
As of April 28, 2024, Canpar’s net deemed asset value in Saskatchewan was ($88,800) (deemed assets of $0 and deemed liabilities of $88,800), with an LMR ratio of 0.00.
Saskatchewan
As of April 28, 2024, Canpar’s net deemed asset value in Saskatchewan was ($88,800) (deemed assets of $0 and deemed liabilities of $88,800), with an LMR ratio of 0.00.
The Company operates five abandoned wells located in the Southwest SK package.
British Columbia
The Company does not operate any wells in British Columbia.
Facilities Overview
Canpar holds various working interests in facilities associated with the Properties. Details on Canpar’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.
Trimble estimated that as at December 31, 2023 the Properties contained remaining proved plus probable reserves of 54 MMcf of natural gas and 1,000 barrels of oil and natural gas liquids (10,000 boe), with an estimated net present value of approximately $47,000 using forecast pricing at a 10% discount. The reserves values shown below do not include operating and capital costs associated with Canpar’s interests where no reserves were assigned.
British Columbia
The Company does not operate any wells in British Columbia.
Facilities Overview
Canpar holds various working interests in facilities associated with the Properties. Details on Canpar’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.
Trimble estimated that as at December 31, 2023 the Properties contained remaining proved plus probable reserves of 54 MMcf of natural gas and 1,000 barrels of oil and natural gas liquids (10,000 boe), with an estimated net present value of approximately $47,000 using forecast pricing at a 10% discount. The reserves values shown below do not include operating and capital costs associated with Canpar’s interests where no reserves were assigned.
CENTRAL AB PACKAGE
In the Central AB Package, Canpar has various non-operated working interests primarily in the Hairy Hill, Lloydminster, Mannville, Norris, Oberlin, Steve, Siebens, Sugden, Twining and Viking areas as well as operated non-producing working interests in two wells located in the Siebens area of Alberta as shown on the following map.
MANNVILLE
Township 50, Range 9 W4
At Mannville, Canpar holds a 28.98% working interest in one natural gas well PEINC Mann 100/09-08-050-09W4/0 operated by Perpetual Energy Inc. Perpetual is currently in the process of selling its interests at Mannville to PointBreak Resources Inc.
Average production net to Canpar from the Mannville property for the fourth quarter of 2023 was approximately 26 Mcf/d of natural gas (four boe/d).
Operating income net to Canpar from Mannville for the fourth quarter of 2023 was approximately $80 or approximately $320 on an annualized basis.
At Mannville, Canpar holds a 28.98% working interest in one natural gas well PEINC Mann 100/09-08-050-09W4/0 operated by Perpetual Energy Inc. Perpetual is currently in the process of selling its interests at Mannville to PointBreak Resources Inc.
Average production net to Canpar from the Mannville property for the fourth quarter of 2023 was approximately 26 Mcf/d of natural gas (four boe/d).
Operating income net to Canpar from Mannville for the fourth quarter of 2023 was approximately $80 or approximately $320 on an annualized basis.
Mannville 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.
Trimble estimated that as at December 31, 2023 the Mannville property contained remaining proved plus probable reserves of 49 MMcf of natural gas (8,000 boe), with an estimated net present value of approximately $23,000 using forecast pricing at a 10% discount.
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.
Trimble estimated that as at December 31, 2023 the Mannville property contained remaining proved plus probable reserves of 49 MMcf of natural gas (8,000 boe), with an estimated net present value of approximately $23,000 using forecast pricing at a 10% discount.
Mannville Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
VIKING
Township 47, Range 13 W5
At Viking, Canpar holds a 5.8% working interest in one producing natural gas well WLEC Vik-Kins100/14-14-047-13W4/05 operated by West Lake Energy Corp.
Average production net to Canpar from the Viking property for the fourth quarter of 2023 was approximately one Mcf/d of natural gas.
Operating income net to Canpar from Viking for the fourth quarter of 2023 was approximately $50 or $200 on an annualized basis.
At Viking, Canpar holds a 5.8% working interest in one producing natural gas well WLEC Vik-Kins100/14-14-047-13W4/05 operated by West Lake Energy Corp.
Average production net to Canpar from the Viking property for the fourth quarter of 2023 was approximately one Mcf/d of natural gas.
Operating income net to Canpar from Viking for the fourth quarter of 2023 was approximately $50 or $200 on an annualized basis.
WESTERN AB PACKAGE
In the Western AB Package, Canpar has various non-operated working interests located in the Ferrier, Garrington, Highvale, Medicine River, Northville, Pembina and Sylvan Lake areas as shown on the following map.
FERRIER
Township 39, Range 7 W5
At Ferrier, Canpar holds a 24.29% non-operated working interest in the commingled natural gas well Timberrock Ferr 100/15-08-039-07W5/0 operated by Whitecap Resources Inc.
Average production net to Canpar from the Ferrier property for the fourth quarter of 2023 was approximately five Mcf/d of natural gas (one boe/d).
Operating income net to Canpar from Ferrier for the fourth quarter of 2023 was approximately $2,200 or approximately $8,800 on an annualized basis.
At Ferrier, Canpar holds a 24.29% non-operated working interest in the commingled natural gas well Timberrock Ferr 100/15-08-039-07W5/0 operated by Whitecap Resources Inc.
Average production net to Canpar from the Ferrier property for the fourth quarter of 2023 was approximately five Mcf/d of natural gas (one boe/d).
Operating income net to Canpar from Ferrier for the fourth quarter of 2023 was approximately $2,200 or approximately $8,800 on an annualized basis.
Ferrier 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.
Trimble estimated that as at December 31, 2023 the Ferrier property contained remaining proved plus probable reserves of 4.7 MMcf of natural gas and 300 barrels of natural gas liquids (1,000 boe), with an estimated net present value of approximately $5,000 using forecast pricing at a 10% discount.
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.
Trimble estimated that as at December 31, 2023 the Ferrier property contained remaining proved plus probable reserves of 4.7 MMcf of natural gas and 300 barrels of natural gas liquids (1,000 boe), with an estimated net present value of approximately $5,000 using forecast pricing at a 10% discount.
Ferrier Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
HIGHVALE
Township 52, Range 3-4 W5
At Highvale, Canpar holds a 2.41% working interest in the Lower Mannville oil well Enron Et Al Highvale 100/06-01-052-04W5/0 operated by New Star Energy Ltd.
Average production net to Canpar from the Highvale property for the fourth quarter of 2023 was approximately four Mcf/d of natural gas (one boe/d).
Operating income net to Canpar from Highvale for the fourth quarter of 2023 was approximately $400 or approximately $1,600 on an annualized basis.
At Highvale, Canpar holds a 2.41% working interest in the Lower Mannville oil well Enron Et Al Highvale 100/06-01-052-04W5/0 operated by New Star Energy Ltd.
Average production net to Canpar from the Highvale property for the fourth quarter of 2023 was approximately four Mcf/d of natural gas (one boe/d).
Operating income net to Canpar from Highvale for the fourth quarter of 2023 was approximately $400 or approximately $1,600 on an annualized basis.
Highvale 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.
Trimble estimated that as at December 31, 2023 the Highvale property contained remaining proved plus probable reserves of 0.5 MMcf of natural gas and 400 barrels of oil (700 boe), with an estimated net present value of approximately $17,000 using forecast pricing at a 10% discount.
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.
Trimble estimated that as at December 31, 2023 the Highvale property contained remaining proved plus probable reserves of 0.5 MMcf of natural gas and 400 barrels of oil (700 boe), with an estimated net present value of approximately $17,000 using forecast pricing at a 10% discount.
Highvale Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
SOUTHERN AB PACKAGE
In the Southern AB Package, Canpar has various non-operated working interests located in the Cessford, Grand Forks, Medicine Hat, Retlaw and Queenstown areas as shown on the following map.
CESSFORD
Township 22, Range 11 W4
At Cessford, Canpar holds a 13.095% working interest in five producing Medicine Hat/Milk River natural gas wells CNRL Cess 100/02-13-022-11W4/00, CNRL Cess 100/08-13-022-11W4/00, CNRL Cess 100/12-13-022-11W4/00, CNRL Cess 100/14-13-022-11W4/00, and CNRL Cess 100/16-13-022-11W4/00 operated by Canadian Natural Resources Limited.
Average production net to Canpar from Cessford for the fourth quarter of 2023 was approximately five Mcf/d of natural gas (1 boe/d).
At Cessford, Canpar holds a 13.095% working interest in five producing Medicine Hat/Milk River natural gas wells CNRL Cess 100/02-13-022-11W4/00, CNRL Cess 100/08-13-022-11W4/00, CNRL Cess 100/12-13-022-11W4/00, CNRL Cess 100/14-13-022-11W4/00, and CNRL Cess 100/16-13-022-11W4/00 operated by Canadian Natural Resources Limited.
Average production net to Canpar from Cessford for the fourth quarter of 2023 was approximately five Mcf/d of natural gas (1 boe/d).
Cessford Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
QUEENSTOWN
Township 19, Range 21 W4
At Queenstown, Canpar holds a 0.1799% working interest in the Queenstown Lower Mannville Ellerslie Unit No. 1 operated by Canadian Natural Resources Limited.
Canpar’s production from the Queenstown property is nominal.
At Queenstown, Canpar holds a 0.1799% working interest in the Queenstown Lower Mannville Ellerslie Unit No. 1 operated by Canadian Natural Resources Limited.
Canpar’s production from the Queenstown property is nominal.
Queenstown 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.
Trimble estimated that as at December 31, 2023 the Queenstown property contained remaining proved plus probable reserves of 0.3 MMcf of natural gas and 100 barrels of oil (200 boe), with an estimated net present value of approximately $1,000 using forecast pricing at a 10% discount.
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.
Trimble estimated that as at December 31, 2023 the Queenstown property contained remaining proved plus probable reserves of 0.3 MMcf of natural gas and 100 barrels of oil (200 boe), with an estimated net present value of approximately $1,000 using forecast pricing at a 10% discount.
Queenstown Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
PEACE RIVER ARCH AB PACKAGE
In the Peace River Arch AB Package, Canpar holds various non-operated working interests in the Valhalla and Pouce Coupe areas of Alberta.
There is currently no production from the Peace River Arch AB Package.
There is currently no production from the Peace River Arch AB Package.
NORTHERN AB PACKAGE
In the Northern AB Package, the Company holds various non-operated working interests in the Amesbury and Newby areas of Alberta.
There is currently no production from the Northern AB Package.
There is currently no production from the Northern AB Package.
SOUTHWEST SK PACKAGE
In the Southwest SK Package, the Company holds various non-operated working interests in the Avon Hill, Denzil, Estuary, Lacadena, Leader, Lemsford, Liebenthal, Mendham, Portreeve, Sceptre and Westerham areas as well as operated non-producing working interests in five wells located in the Cactus Lake and Plover Lake areas of Saskatchewan.
SCEPTRE
Township 22, Range 23-24 W3
At Sceptre, Canpar holds a 25% working interest in 16 producing Milk River Formation natural gas wells operated by Canadian Natural Resources Limited.
Average production net to Canpar from the Sceptre property for the fourth quarter of 2023 was approximately 15 Mcf/d of natural gas with minor volumes of natural gas liquids (3 boe/d).
At Sceptre, Canpar holds a 25% working interest in 16 producing Milk River Formation natural gas wells operated by Canadian Natural Resources Limited.
Average production net to Canpar from the Sceptre property for the fourth quarter of 2023 was approximately 15 Mcf/d of natural gas with minor volumes of natural gas liquids (3 boe/d).
Sceptre Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
WEST CENTRAL SK PACKAGE
In the West Central SK Package, the Company holds various non-operated working interests in the Big Gully, Ear Lake, Lashburn, Low Lake, Onion Lake and Rush Lake areas of Saskatchewan.
There is currently no production from the West Central SK Package.
There is currently no production from the West Central SK Package.
NORTHEAST BC PACKAGE
In the Northeast BC Package, the Company holds various non-operated working interests in the Helmet area of British Columbia.
At Helmet, Canpar holds a 12.055% working interest in one producing Jean Marie natural gas well CNRL Helmet 200/D-025-D/094-P-15/00 operated by Canadian Natural Resources Limited.
Average production net to Canpar from the Helmet property for the fourth quarter of 2023 was approximately four Mcf/d of natural gas (one boe/d).
Average production net to Canpar from the Helmet property for the fourth quarter of 2023 was approximately four Mcf/d of natural gas (one boe/d).
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
transactions with the parties submitting the most acceptable proposals at the conclusion of the process.
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.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, 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.