Offering Details
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Current Offerings / Harvard Resources Inc.
Harvard Resources Inc.
Property DivestitureBid Deadline: November 21, 2024
12:00 PM
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OVERVIEW
Harvard Resources Inc. (“Harvard” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its oil and natural gas interests located in the Mikwan area of Alberta (the “Property”). Harvard holds a 70% operated working interest in the Property. The remaining 30% non-operated interest is also available for sale to any interested party. The Property consists of approximately 30 sections of Crown land. Production from the Property is from the Viking Formation. The Property has been under waterflood since October 2019.
Average daily production net to Harvard from the Property for quarter ended June 30, 2024 was approximately 64 boe/d, consisting of 53 barrels of oil and natural gas liquids per day and 63 Mcf/d of natural gas.
Operating income net to Harvard from the Property for the quarter ended June 30, 2024 was approximately $215,000, or $860,000 annualized.
As of September 7, 2024, the Property had a deemed net asset value of $1.3 million (deemed assets of $3.5 million and deemed liabilities of $2.2 million), with an LMR ratio of 1.59.
Average daily production net to Harvard from the Property for quarter ended June 30, 2024 was approximately 64 boe/d, consisting of 53 barrels of oil and natural gas liquids per day and 63 Mcf/d of natural gas.
Operating income net to Harvard from the Property for the quarter ended June 30, 2024 was approximately $215,000, or $860,000 annualized.
As of September 7, 2024, the Property had a deemed net asset value of $1.3 million (deemed assets of $3.5 million and deemed liabilities of $2.2 million), with an LMR ratio of 1.59.
Overview Map Showing the Location of the Divestiture Property
MIKWAN
Township 34-37, Range 22-25 W4
Harvard holds a 70% working interest in the Property, which consists of approximately 30 sections of Crown land. Production from the property is from the Viking Formation. The Property has been under waterflood since October 2019 with a current recovery factor of 22%.
Average daily production net to Harvard from the Property for quarter ended June 30, 2024 was approximately 64 boe/d, consisting of 53 barrels of oil and natural gas liquids per day and 63 Mcf/d of natural gas.
Operating income net to Harvard from the Property for the quarter ended June 30, 2024 was approximately $215,000, or $860,000 annualized.
Harvard holds a 70% working interest in the Property, which consists of approximately 30 sections of Crown land. Production from the property is from the Viking Formation. The Property has been under waterflood since October 2019 with a current recovery factor of 22%.
Average daily production net to Harvard from the Property for quarter ended June 30, 2024 was approximately 64 boe/d, consisting of 53 barrels of oil and natural gas liquids per day and 63 Mcf/d of natural gas.
Operating income net to Harvard from the Property for the quarter ended June 30, 2024 was approximately $215,000, or $860,000 annualized.
Mikwan, Alberta - Gross Production Group Plot
Mikwan Geology
The productive zone at Mikwan is comprised of two separate, stacked Viking intervals as shown on the following well logs. The Upper Viking is a transgressive lag conglomerate trending NW-SE. The Lower Viking is the regional coarsening upward shoreface sands and patchy conglomerate.
The productive zone at Mikwan is comprised of two separate, stacked Viking intervals as shown on the following well logs. The Upper Viking is a transgressive lag conglomerate trending NW-SE. The Lower Viking is the regional coarsening upward shoreface sands and patchy conglomerate.
Forge ThreeHCk 102/06-17-036-25W4/0 – Viking Formation Type Log
Current production from the Property is largely from vertical wells, with only one horizontal well drilled on the Company’s lands to date. The following map shows the Viking sands in the area.
As shown on the following well logs, both the Upper and Lower Viking have been completed in the well Forge Huxley 100/08-28-035-24W4/0. The well produced at a rate of 120 bbl/d of oil for first two years and is currently producing at a rate of 20 barrels of oil per day from both the Upper and Lower Viking. Cumulative production from the well to date is approximately 257,000 barrels of oil.
Forge Huxley 100/08-28-035-24W4/0 – Viking Formation Type Log
As shown on the following well logs, both the Upper and Lower Viking have been completed in the well Forge ThreeHCk 100/16-09-036-25W4/04. The 16-09 well is currently producing at a rate of 37 barrels of oil per day from both the Upper and Lower Viking. Cumulative production from the well to date is approximately 90,000 barrels of oil.
Forge ThreeHCk 100/16-09-036-25W4/04 – Viking Formation Type Log
Mikwan Upside
Harvard has mapped the Viking potential on its land and has determined that there are vertical recompletion candidates, along with potential for further development with horizontal drilling.
The following map shows the location of the Company’s waterflood in the Three Hills Viking V CC Pool compared to offsetting Viking water floods including the Joffre Viking Tertiary Pool (operated by Whitecap Resources Inc.) with a current recovery factor greater than 50% and the Joffre Viking I Pool (Waterflood) operated by Canadian Natural Resources Limited, with a current recovery factor of 35%.
Harvard has mapped the Viking potential on its land and has determined that there are vertical recompletion candidates, along with potential for further development with horizontal drilling.
The following map shows the location of the Company’s waterflood in the Three Hills Viking V CC Pool compared to offsetting Viking water floods including the Joffre Viking Tertiary Pool (operated by Whitecap Resources Inc.) with a current recovery factor greater than 50% and the Joffre Viking I Pool (Waterflood) operated by Canadian Natural Resources Limited, with a current recovery factor of 35%.
Mikwan Seismic
The Company does not have ownership in any seismic data relating to the Property.
Mikwan Facilities
The Company’s oil wells are set up with single-well batteries and the casing natural gas is tied-in to either Ember Resources Inc. or AlphaBow Energy Ltd. for processing.
Emulsion from the wells is trucked to Secure Energy Services Inc. in Stettler for treating. Three wells 103/11-17-035-23W4/02, 100/16-17-035-23W4/06, and 100/05-02-036-24W4/02 are cut clean and are trucked directly to Inter Pipeline Ltd.
Harvard also has an interest in two natural gas wells that are tied into Pine Cliff Energy Ltd.’s natural gas plant at 13-13-035-26W4 and Sun Century Petroleum Corporation’s natural gas plant at 10-08-037-23W4. Harvard also operates a water injection facility at 14-08-036-25W4 that injects water into the 16-17-036-25W4 Viking injection well.
Mikwan Marketing
Oil and natural gas are sold to Tidal Energy Marketing Inc. Harvard is paid for natural gas liquids via joint interest billing by the plant operators.
Mikwan Reserves
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Property (the “GLJ Report”). The GLJ Report is effective March 31, 2024 using GLJ’s forecast pricing as at April 1, 2024.
GLJ estimates that, as at March 31, 2024, the Property contained remaining proved plus probable reserves of 163,000 barrels of oil and natural gas liquids and 76 MMcf of natural gas (176,000 boe), with an estimated net present value of $3.8 million using forecast pricing at a 10% discount.
The Company does not have ownership in any seismic data relating to the Property.
Mikwan Facilities
The Company’s oil wells are set up with single-well batteries and the casing natural gas is tied-in to either Ember Resources Inc. or AlphaBow Energy Ltd. for processing.
Emulsion from the wells is trucked to Secure Energy Services Inc. in Stettler for treating. Three wells 103/11-17-035-23W4/02, 100/16-17-035-23W4/06, and 100/05-02-036-24W4/02 are cut clean and are trucked directly to Inter Pipeline Ltd.
Harvard also has an interest in two natural gas wells that are tied into Pine Cliff Energy Ltd.’s natural gas plant at 13-13-035-26W4 and Sun Century Petroleum Corporation’s natural gas plant at 10-08-037-23W4. Harvard also operates a water injection facility at 14-08-036-25W4 that injects water into the 16-17-036-25W4 Viking injection well.
Mikwan Marketing
Oil and natural gas are sold to Tidal Energy Marketing Inc. Harvard is paid for natural gas liquids via joint interest billing by the plant operators.
Mikwan Reserves
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Property (the “GLJ Report”). The GLJ Report is effective March 31, 2024 using GLJ’s forecast pricing as at April 1, 2024.
GLJ estimates that, as at March 31, 2024, the Property contained remaining proved plus probable reserves of 163,000 barrels of oil and natural gas liquids and 76 MMcf of natural gas (176,000 boe), with an estimated net present value of $3.8 million using forecast pricing at a 10% discount.
Mikwan LMR as of September 7, 2024
As of September 7, 2024, the Property had a deemed net asset value of $1.3 million (deemed assets of $3.5 million and deemed liabilities of $2.2 million), with an LMR ratio of 1.59.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Property until 12:00 pm on Thursday, November 21, 2024.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday, November 21, 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 Property 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 GLJ Report, LMR information, most recent net operations summary and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Property please contact Ben Rye,Tom Pavic or Sydney Birkett at 403.266.6133.