Close
Save

Offering Details


Back

Properties   /   Senior E&P Company



Senior E&P Company

Property Divestiture (Non-Operated)
Bid Deadline: September 12, 2019 12:00 PM
Download Full PDF - Printable


OVERVIEW

THE FOLLOWING INTERESTS, HOUSE MOUNTAIN UNIT NO. 2, KAYBOB NOTIKEWAN UNIT NO. 1, SUNSET TRIASSIC A UNIT NO. 1 AND WASKAHIGAN ARE NO LONGER INCLUDED IN THIS OFFERING.
 

Sayer Energy Advisors has been engaged to assist a senior oil and natural gas exploration and production company (the “Company”) with the sale of certain non-core oil and natural gas properties located in several areas of central Alberta (the “Properties”).  The Properties consist of non-operated working interests in the following units: House Mountain Unit No. 2, Kaybob Notikewin Unit No. 1, Nordegg Gas Unit No. 1, Progress Halfway Gas Unit No. 1, Provost Cummings “Y” Unit No. 1, Rycroft Charlie Lake ‘A’ Pool Unit, Rycroft Charlie Lake C Pool Unit, Sunset Triassic A Unit No. 1 and the Waskahigan property which includes a working interest in the Waskahigan Dunvegan ‘A’ Pool Unit.
 
The Properties provide the Company with long-life, low decline oil and natural gas production.  In the first quarter of 2019, production net to the Company averaged approximately 139 boe/d (53 bbl/d of oil and natural gas liquids, 514 Mcf/d of natural gas). 
 
Net operating income from Properties totaled approximately $630,000 in 2018.

 

Overview Map Showing Location of the Divestiture Properties


Production & NOI Overview
 
Production net to the Company in the first quarter of 2019 averaged approximately 139 boe/d (53 bbl/d of oil and natural gas liquids, 514 Mcf/d of natural gas). 
 
Net operating income from Properties totaled approximately $630,000 in 2018.

 

PROVOST CUMMINGS "Y" UNIT NO. 1

Township 37, Range 4 W4


The Company has a 16.66% working interest in the long life, low-decline Provost Cummings “Y” Unit No. 1 operated by Prairie Provident Resources Canada Ltd.
 
In the first quarter of 2019, production net to the Company from the Provost Cummings “Y” Unit No. 1 averaged approximately 12 barrels of oil per day.
 
Net operating income from the Provost Cummings “Y” Unit No. 1 totaled approximately $124,300 in 2018.

 

Other Interest Holders


Provost Cummings "Y" Unit No. 1 - 16.66% W.I.
Gross Production Group Plot


The Provost Cummings “Y” Unit No. 1 is currently under water injection and production is from the Glauconitic Sandstone, Cummings and Lloydminster formations.  To date, over 5 million barrels of water have been injected and just under 3 million barrels of oil have been produced from the unit.

NORDEGG GAS UNIT NO. 1

Township 43-44, Range 11-12 W5

The Company has a 2.88% working interest in the long life, low-decline Nordegg Gas Unit No. 1 operated by Cenovus Energy Inc.
 
Production net to the Company from the Nordegg Gas Unit No. 1 in the first quarter of 2019 averaged approximately 104 Mcf/d of natural gas and one barrel per day of associated natural gas liquids (18 boe/d).
 
Net operating income from the Nordegg Gas Unit No. 1 totaled approximately $51,200 in 2018.

 

Other Interest Holders


Nordegg Gas Unit No. 1 - 2.88% W.I.
Gross Production Group Plot


The Nordegg Gas Unit No. 1 is currently producing from the Shunda and Elkton formations.  To date, approximately 384 Bcf of natural gas has been produced from the unit.

RYCROFT CHARLIE LAKE 'A' POOL UNIT

Township 77, Range 5 W6

The Company has a 16.97% working interest in the long life, low-decline Rycroft Charlie Lake ‘A’ Pool Unit operated by Rising Star Resources Ltd.
 
In the first quarter of 2019, production net to the Company from the Rycroft Charlie Lake ‘A’ Pool Unit averaged approximately 17 barrels of oil per day and 14 Mcf/d of natural gas (19 boe/d).
 
Net operating income from the Rycroft Charlie Lake ‘A’ Pool Unit totaled approximately $153,200 in 2018.

 

Other Interest Holders


Rycroft Charlie Lake 'A' Pool Unit - 16.97% W.I.
Gross Production Group Plot


The Rycroft Charlie Lake ‘A’ Pool Unit is currently under water injection and production is from the Charlie Lake Formation.  To date, approximately 24 million barrels of water have been injected and almost 4 Bcf of natural gas and over 6 million barrels of oil have been produced from the unit.

RYCROFT CHARLIE LAKE C POOL UNIT

Township 77, Range 5-6 W6

The Company has a 24.41% working interest in the Rycroft Charlie Lake C Pool Unit operated by Rising Star Resources Ltd.
 
Production net to the Company from the Rycroft Charlie Lake C Pool Unit in the first quarter of 2019 averaged approximately four barrels of oil per day and four Mcf/d of natural gas (5 boe/d).
 
Net operating income from the Rycroft Charlie Lake C Pool Unit totaled approximately $59,700 in 2018.

 

Other Interest Holders


Rycroft Charlie Lake 'C Pool Unit - 24.41% W.I.
Gross Production Group Plot


The Rycroft Charlie Lake C Pool Unit is not currently under water injection but just under 8 million barrels of water have been injected and over 4 Bcf of natural gas and over one million barrels of oil have been produced from the unit to date.

PROGRESS HALFWAY GAS UNIT NO. 1

Township 77-78, Range 8-9 W6

The Company has a 10.10% working interest in the long life, low-decline Progress Halfway Gas Unit 1 operated by Canadian Natural Resources Limited.
 
In the first quarter of 2019, production net to the Company from the Progress Halfway Gas Unit 1 averaged approximately 219 Mcf/d of natural gas and five barrels of natural gas liquids per day (42 boe/d).
 
Net operating income from the Progress Halfway Gas Unit 1 totaled approximately $120,000 in 2018.

 

Other Interest Holders


Progress Halfway Gas Unit 1 - 10.10% W.I.
Gross Production Group Plot


The Progress Halfway Gas Unit 1 has produced a total of approximately 163 Bcf of natural gas from the Halfway Formation to date.

PROCESS & TIMELINE

Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday September 12, 2019.  Offers will be accepted on individual properties but not portions thereof.
 

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.

Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday September 12, 2019.


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.

CONFIDENTIALITY AGREEMENT

Parties wishing to receive a detailed confidential information binder with detailed technical information relating to this opportunity should execute the Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, email (brye@sayeradvisors.com) or fax (403.266.4467).
 
Included in the confidential information is the following: summary land information, most recent net operations summary and other relevant technical information.
 
Download Confidentiality Agreement
 
To schedule a time to visit the Data Room, which is situated at Sayer’s office, please contact Ben Rye, Tom Pavic or Grazina Palmer at 403.266.6133.
Top