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Current Offerings   /   KSV Restructuring Inc. - AlphaBow Energy Ltd.



KSV Restructuring Inc. - AlphaBow Energy Ltd.

CCAA Sale Process
Bid Deadline: July 4, 2024
12:00 PM
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OVERVIEW

On April 26, 2024, the Court of King’s Bench of Alberta granted an order pursuant to the Companies’ Creditors Arrangement Act, (“CCAA”) appointing KSV Restructuring Inc. (“KSV”) as the monitor (the “Monitor”) of AlphaBow Energy Ltd. (“AlphaBow” or the “Company”). As part of the CCAA, the Company has engaged Sayer Energy Advisors to assist it with a Sales and Investment Solicitation Process (the “SISP”).
 
The SISP is intended to solicit interest in, and opportunities for a sale of, or investment in, all or part of AlphaBow’s oil and natural gas interests and facilities and carbon capture, utilization and storage facility in Alberta, Canada (the “Properties”), or an investment in AlphaBow, which may include a restructuring, recapitalization, or other form of reorganization of the Company. All offers received at the bid deadline will be reviewed by the Monitor and the most acceptable offers may be accepted by the Monitor, subject to Court approval. A copy of the SISP is found here.
 
Prior to the CCAA proceedings, on March 30, 2023 AlphaBow was ordered by the Alberta Energy Regulator (“AER”) under the Oil and Gas Conservation Act to submit and implement a Reasonable Care and Measures (“RCAM”) Plan. Pursuant to the RCAM order, the AER issued a suspension order to AlphaBow on June 5, 2023. On September 6, 2023 the AER directed the Orphan Well Association (“OWA”) to take possession of all licensed sites of AlphaBow.
 
Prior to the suspension order, average production net to AlphaBow from the Properties for the first quarter of 2023 was approximately 3,450 boe/d consisting of 12.1 MMcf/d of natural gas and 1,430 barrels of oil and natural gas liquids per day.
 
The Properties consist of both operated and non-operated interests located throughout Alberta. For this offering, the Properties are separated into the following geographical packages: Central, East, North, Provost, South and W5 & W6.
 
In the Chigwell area, AlphaBow has a CO2 capture and enhanced oil recovery project. AlphaBow believes that the Chigwell enhanced oil recovery (“EOR”) and CO2 capture projects are strategic assets of the Company but have lacked investment in recent years. With further investment in the Chigwell EOR projects the Company believes it can expand facilities, convert certain wells to injectors, reactivate certain wells and drill new wells to bring the area back to long-term sustainable oil production.
 
The Company has identified potential for drilling upside opportunities in the Aerial, Amisk, Edson, Green Glades, Kaybob, and Pine Creek areas of Alberta.
 
Details relating to the Properties will be available in the virtual data room for parties that execute a confidentiality agreement.

 
Overview Map Showing the Location of AlphaBow's Properties

 
Production Overview

Prior to the suspension order, average production net to AlphaBow from the Properties for the first quarter of 2023 was approximately 3,450 boe/d consisting of 12.1 MMcf/d of natural gas and 1,430 barrels of oil and natural gas liquids per day.

 
Gross Production Group Plot of AlphaBow's Wells

 
LMR Summary as of January 7, 2023

As of January 7, 2023, AlphaBow’s net deemed asset value was ($17.5 million) (deemed assets of $214.2 million and deemed liabilities of $231.7 million), with an LMR ratio of 0.92.

 

 
Reserves Overview

The Company does not have a current third-party reserve report relating to the Properties.

Well List

Click here to download the complete well list in Excel.

CENTRAL PACKAGE

Township 31-47, Range 18-28 W4

In the Central package, AlphaBow’s main properties are in the Chigwell, Ferrybank, Mikwan/Three Hills and Twining areas of Alberta, as shown on the following map.
 
In the Chigwell area, Alphabow has a CO2 capture and enhanced oil recovery project. AlphaBow believes that the Chigwell EOR and CO2 capture projects are strategic assets of the Company but have lacked investment in recent years. With further investment in the Chigwell EOR projects the Company believes it can expand facilities, convert certain wells to injectors, reactivate certain wells and drill new wells to bring the area back to long-term sustainable oil production. Details relating to the Properties will be available in the virtual data room for parties that execute a confidentiality agreement.

 

 
Central Package Well List

Click here to download the complete well list in Excel.

EAST PACKAGE

Township 25-34, Range 8-18 W4

In the East package, AlphaBow’s main properties are in the Aerial, Connorsville, Hanna, Kirkpatrick, Sounding, Stanmore and Sunnynook areas of Alberta, as shown on the following map.
 
The Company has identified potential for drilling upside opportunities in the Ellerslie Formation at Aerial. Further details relating to the Properties will be available in the virtual data room for parties that execute a confidentiality agreement.

 

 
East Package Well List

Click here to download the complete well list in Excel.

NORTH PACKAGE

Township 47-80, Range 3-27 W4

In the North package, AlphaBow’s main properties are in the Craigend, Lavoy and Thornbury areas of Alberta, as shown on the following map.

 

 
North Package Well List

Click here to download the complete well list in Excel.

PROVOST PACKAGE

Township 35-47, Range 1-18 W4

In the Provost package, AlphaBow’s main properties are in the Alliance, Amisk, Choice, Green Glades (Hayter), Hastings Coulee, Sumner Lake and Thompson areas of Alberta, as shown on the following map.
 
The Company has identified potential for drilling upside opportunities in the Dina Formation at Amisk and the Dina and Cummings formations at Green Glades. Further details relating to the Properties will be available in the virtual data room for parties that execute a confidentiality agreement.

 

 
Provost Package Well List

Click here to download the complete well list in Excel.

SOUTH PACKAGE

Township 4-24, Range 4-28 W4

In the South package, AlphaBow’s main properties are in the Lethbridge, Medicine Hat and Winnifred areas of Alberta as well as certain minor interests, as shown on the following map.

 

 
South Package Well List

Click here to download the complete well list in Excel.

W5 & W6 PACKAGE

Township 46-72, Range 14 W5 - 5 W6

Within the W5 & W6 package, AlphaBow’s main properties are in the Edson, Kaybob (Fox Creek), Kaybob (South), Pine Creek and Sturgeon Lake areas of Alberta, as shown on the following map.
 
The Company has identified potential for drilling upside opportunities in the W5 & W6 package including natural gas opportunities in the Wilrich Formation at Edson, the Montney Formation at Kaybob (South), and Second White Speckled Shale Formation at Pine Creek. Additionally, AlphaBow has identified reactivation potential in the Kaybob Notikewin Unit No. 1. Further details relating to the Properties will be available in the virtual data room for parties that execute a confidentiality agreement.

 

 
W5 & W6 Package Well List

Click here to download the complete well list in Excel.

PROCESS & TIMELINE

Sayer Energy Advisors is accepting offers as outline in the SISP, to acquire the Properties until 12:00 pm on Thursday July 4, 2024. 


 
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.

Sayer Energy Advisors is accepting offers as outline in the SISP, from interested parties
unitl noon on Thursday July 4, 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 (tpavic@sayeradvisors.com) or fax (403.266.4467).

Included in the confidential information is the following: summary land information, net lease operating statements, LMR information and other relevant technical information.

Download Confidentiality Agreement

To receive further information on the Properties please contact Tom Pavic, Ben Rye or Sydney Birkett at 403.266.6133.

 

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