Offering Details
Back
Current Offerings / Muddy Petroleum Company Ltd.
Muddy Petroleum Company Ltd.
Strategic Alternatives ProcessBid Deadline: December 5, 2024
12:00 PM
Download Full PDF - Printable
OVERVIEW
Muddy Petroleum Company Ltd. (“Muddy” or the “Company”) has engaged Sayer Energy Advisors to assist it with a strategic alternatives process. The Company is open to reviewing all alternatives including, but not limited to, a corporate transaction resulting in the sale of all of the shares of the Company or the sale of the majority of Muddy’s oil and natural gas assets, in whole or in part.
Muddy is a private junior oil and natural gas company with predominantly non-operated working interests located in the Gilby, Gold Creek, Kaybob, Obed and Pembina areas, as well as non-producing properties located throughout Alberta (the “Properties”).
Average daily sales production net to Muddy from the Properties for the first six months of 2024 was approximately 48 boe/d, consisting of approximately 209 Mcf/d of natural gas and 13 bbl/d of oil and natural gas liquids.
As at July 31, 2024, the Company had nominal working capital. As at December 31, 2023, Muddy had total unused Canadian income tax pools of approximately $10.9 million, including $3.4 million of non-capital losses.
As of September 7, 2024, the Properties had a deemed net asset value of ($574,773) (deemed assets of $61,983 and deemed liabilities of $636,756), with an LMR ratio of 0.10. These numbers do not include Muddy’s current security deposit with the Alberta Energy Regulator which is approximately $809,000. Muddy’s current production is from its non-operated properties, and one operated well at Pembina.
Additional corporate information relating to Muddy will be provided to parties upon execution of a confidentiality agreement.
Muddy is a private junior oil and natural gas company with predominantly non-operated working interests located in the Gilby, Gold Creek, Kaybob, Obed and Pembina areas, as well as non-producing properties located throughout Alberta (the “Properties”).
Average daily sales production net to Muddy from the Properties for the first six months of 2024 was approximately 48 boe/d, consisting of approximately 209 Mcf/d of natural gas and 13 bbl/d of oil and natural gas liquids.
As at July 31, 2024, the Company had nominal working capital. As at December 31, 2023, Muddy had total unused Canadian income tax pools of approximately $10.9 million, including $3.4 million of non-capital losses.
As of September 7, 2024, the Properties had a deemed net asset value of ($574,773) (deemed assets of $61,983 and deemed liabilities of $636,756), with an LMR ratio of 0.10. These numbers do not include Muddy’s current security deposit with the Alberta Energy Regulator which is approximately $809,000. Muddy’s current production is from its non-operated properties, and one operated well at Pembina.
Additional corporate information relating to Muddy will be provided to parties upon execution of a confidentiality agreement.
Overview Map Showing the Location of Muddy's Producing Properties
Corporate Overview
Muddy is a tightly-held private junior oil and natural gas company with a small number of shareholders, and no debt or severance obligations.
As at July 31, 2024, the Company had nominal working capital. As at December 31, 2023, Muddy had total unused Canadian income tax pools of approximately $10.9 million, including $3.4 million of non-capital losses.
Additional corporate information relating to Muddy will be provided to parties upon execution of a confidentiality agreement.
Muddy is a tightly-held private junior oil and natural gas company with a small number of shareholders, and no debt or severance obligations.
As at July 31, 2024, the Company had nominal working capital. As at December 31, 2023, Muddy had total unused Canadian income tax pools of approximately $10.9 million, including $3.4 million of non-capital losses.
Additional corporate information relating to Muddy will be provided to parties upon execution of a confidentiality agreement.
Production Overview
Average daily sales production net to Muddy from the Properties for the first six months of 2024 was approximately 48 boe/d, consisting of approximately 209 Mcf/d of natural gas and 13 bbl/d of oil and natural gas liquids as outlined below.
Operating income net to Muddy for the first six months of 2024 was approximately ($94,200) or approximately ($188,400) annualized as outlined below.
Average daily sales production net to Muddy from the Properties for the first six months of 2024 was approximately 48 boe/d, consisting of approximately 209 Mcf/d of natural gas and 13 bbl/d of oil and natural gas liquids as outlined below.
Operating income net to Muddy for the first six months of 2024 was approximately ($94,200) or approximately ($188,400) annualized as outlined below.
*NOI includes property taxes for fiscal 2024 and all workover expenses
Gross Production Group Plot of Muddy's Oil & Natural Gas Wells
LMR Summary
Muddy’s current production is from its non-operated properties, and one operated well at Pembina.
As of September 7, 2024, the Properties had a deemed net asset value of ($574,773) (deemed assets of $61,983 and deemed liabilities of $636,756), with an LMR ratio of 0.10. These numbers do not include Muddy’s current security deposit with the Alberta Energy Regulator which is approximately $809,000.
Muddy’s current production is from its non-operated properties, and one operated well at Pembina.
As of September 7, 2024, the Properties had a deemed net asset value of ($574,773) (deemed assets of $61,983 and deemed liabilities of $636,756), with an LMR ratio of 0.10. These numbers do not include Muddy’s current security deposit with the Alberta Energy Regulator which is approximately $809,000.
Marketing Overview
Muddy has a purchase contract in place with Global Petroleum Marketing Inc. for oil. Oil is delivered to Secure Energy Services terminals at Drayton Valley, Fox Creek and Valleyview.
Seismic Overview
The Company does not have an interest in any seismic data relating to the Properties.
Reserves Overview
The Company does not have a third-party reserves evaluation.
Muddy has a purchase contract in place with Global Petroleum Marketing Inc. for oil. Oil is delivered to Secure Energy Services terminals at Drayton Valley, Fox Creek and Valleyview.
Seismic Overview
The Company does not have an interest in any seismic data relating to the Properties.
Reserves Overview
The Company does not have a third-party reserves evaluation.
GOLD CREEK
Township 66-67, Range 6, W6
At Gold Creek, Muddy holds 9%-16% non-operated working interest in three sections of land operated by New Times Energy Canada GP3 Ltd. The property produces natural gas from the Nikanassin Formation.
Average daily production net to Muddy from Gold Creek for the first six months of 2024 was approximately 20 boe/d, consisting of 76 Mcf/d of natural gas and seven bbl/d of oil and natural gas liquids.
Operating income net to Muddy from Gold Creek for the first six months of 2024 was approximately ($2,800) per month, or ($33,600) on an annualized basis.
At Gold Creek, Muddy holds 9%-16% non-operated working interest in three sections of land operated by New Times Energy Canada GP3 Ltd. The property produces natural gas from the Nikanassin Formation.
Average daily production net to Muddy from Gold Creek for the first six months of 2024 was approximately 20 boe/d, consisting of 76 Mcf/d of natural gas and seven bbl/d of oil and natural gas liquids.
Operating income net to Muddy from Gold Creek for the first six months of 2024 was approximately ($2,800) per month, or ($33,600) on an annualized basis.
Gold Creek, Alberta
Gross Production Group Plot of Muddy's Natural Gas Wells
Gold Creek Facilities
Muddy has a 10% working interest in a single well battery at 04-11-67-06W6 at Gold Creek.
Gold Creek Reserves
The Company does not have a third-party reserve evaluation.
Gold Creek LMR as of September 7, 2024
The Company does not operate any wells or facilities at Gold Creek.
Gold Creek Well List
Click here to download the complete well list in Excel.
Muddy has a 10% working interest in a single well battery at 04-11-67-06W6 at Gold Creek.
Gold Creek Reserves
The Company does not have a third-party reserve evaluation.
Gold Creek LMR as of September 7, 2024
The Company does not operate any wells or facilities at Gold Creek.
Gold Creek Well List
Click here to download the complete well list in Excel.
OBED
Township 53-54, Range 23, W5
In the Obed area, Muddy holds 10%-20% working interests in three sections of land operated by Tourmaline Oil Corp. The property is producing natural gas primarily from the Cardium, Viking and Mannville formations.
Average daily production net to Muddy from Obed for the first six months of 2024 was 16 boe/d, consisting of 92 Mcf/d of natural gas and trace amounts of natural gas liquids.
Operating income net to Muddy from Obed for the first six months of 2024 was approximately ($2,300) per month, or ($27,600) on an annualized basis.
In the Obed area, Muddy holds 10%-20% working interests in three sections of land operated by Tourmaline Oil Corp. The property is producing natural gas primarily from the Cardium, Viking and Mannville formations.
Average daily production net to Muddy from Obed for the first six months of 2024 was 16 boe/d, consisting of 92 Mcf/d of natural gas and trace amounts of natural gas liquids.
Operating income net to Muddy from Obed for the first six months of 2024 was approximately ($2,300) per month, or ($27,600) on an annualized basis.
Obed, Alberta
Gross Production Group Plot of Muddy's Natural Gas Wells
Obed Facilities
Muddy has an 18.75% working interest in two single well batteries at 2/01-02-54-23W5 and 09-02-54-23W5 at Obed.
Obed Reserves
The Company does not have a third-party reserve evaluation.
Obed LMR as of September 7, 2024
The Company does not operate any wells or facilities at Obed.
Obed Well List
Click here to download the complete well list in Excel.
Muddy has an 18.75% working interest in two single well batteries at 2/01-02-54-23W5 and 09-02-54-23W5 at Obed.
Obed Reserves
The Company does not have a third-party reserve evaluation.
Obed LMR as of September 7, 2024
The Company does not operate any wells or facilities at Obed.
Obed Well List
Click here to download the complete well list in Excel.
KAYBOB
Township 63, Range 19, W5
At Kaybob, Muddy holds a 30% non-operated working interest in three quarter sections of land. The well MUDDY HZ KAYBOB 02/01-29-063-19W5/00 is operated by NVP Exploration Inc. Production from Kaybob is from the Gething Formation. Muddy is currently in a penalty position on the 102/01-29-063-19W5/0 well.
Average daily production net to Muddy from Kaybob for the first six months of 2024 was approximately 10 boe/d, consisting of 41 Mcf/d of natural gas and three bbl/d of oil and natural gas liquids.
Operating income net to Muddy from Kaybob for the first six months of 2024 was approximately ($6,600) per month, or ($79,200) on an annualized basis.
At Kaybob, Muddy holds a 30% non-operated working interest in three quarter sections of land. The well MUDDY HZ KAYBOB 02/01-29-063-19W5/00 is operated by NVP Exploration Inc. Production from Kaybob is from the Gething Formation. Muddy is currently in a penalty position on the 102/01-29-063-19W5/0 well.
Average daily production net to Muddy from Kaybob for the first six months of 2024 was approximately 10 boe/d, consisting of 41 Mcf/d of natural gas and three bbl/d of oil and natural gas liquids.
Operating income net to Muddy from Kaybob for the first six months of 2024 was approximately ($6,600) per month, or ($79,200) on an annualized basis.
Kaybob, Alberta
Gross Production Group Plot of Muddy's Oil & Natural Gas Wells
Kaybob Facilities
Muddy does not have an interest in any facilities at Kaybob.
Kaybob Reserves
The Company does not have a third-party reserve evaluation.
Kaybob LMR as of September 7, 2024
The Company does not operate any wells or facilities at Kaybob.
Kaybob Well List
Click here to download the complete well list in Excel.
Muddy does not have an interest in any facilities at Kaybob.
Kaybob Reserves
The Company does not have a third-party reserve evaluation.
Kaybob LMR as of September 7, 2024
The Company does not operate any wells or facilities at Kaybob.
Kaybob Well List
Click here to download the complete well list in Excel.
PEMBINA
Township 45-50, Range 6-14, W5
At Pembina, Muddy holds a 100% operated interest in the well Muddy Pembina 100/16-18-050-08W5/03 and 1.5%-20% non-operated working interest in several sections of land. The Company’s non-operated interests at Pembina are operated by Cenovus Energy Inc. and Westbrick Energy Ltd.
Current production from Pembina is from the 100/16-18-050-08W5/03 well. The well is producing oil from the Cardium Formation.
Average daily production net to Muddy from Pembina for the first six months of 2024 was approximately two boe/d, consisting of two bbl/d of oil.
Operating income net to Muddy from Pembina for the first six months of 2024 was approximately ($1,100) per month, or ($13,200) on an annualized basis.
At Pembina, Muddy holds a 100% operated interest in the well Muddy Pembina 100/16-18-050-08W5/03 and 1.5%-20% non-operated working interest in several sections of land. The Company’s non-operated interests at Pembina are operated by Cenovus Energy Inc. and Westbrick Energy Ltd.
Current production from Pembina is from the 100/16-18-050-08W5/03 well. The well is producing oil from the Cardium Formation.
Average daily production net to Muddy from Pembina for the first six months of 2024 was approximately two boe/d, consisting of two bbl/d of oil.
Operating income net to Muddy from Pembina for the first six months of 2024 was approximately ($1,100) per month, or ($13,200) on an annualized basis.
Pembina, Alberta
Gross Production Group Plot of Muddy's Oil Wells
Pembina Facilities
Muddy has an interest in the following facilities at Pembina.
Single well batteries at located at 01-26-045-06W5, 06-35-047-07W5, 09-36-047-07W5, 00/13-15-049-08W5 and 16-18-050-08W5, and a natural gas gathering system at 00/13-15-049-08W5.
Pembina Reserves
The Company does not have a third-party reserve evaluation.
Pembina LMR as of September 7, 2024
As of September 7, 2024, the Pembina property had a deemed net asset value of ($231,587) (deemed assets of $61,983 and deemed liabilities of $293,570), with an LMR ratio of 0.21.
Muddy has an interest in the following facilities at Pembina.
Single well batteries at located at 01-26-045-06W5, 06-35-047-07W5, 09-36-047-07W5, 00/13-15-049-08W5 and 16-18-050-08W5, and a natural gas gathering system at 00/13-15-049-08W5.
Pembina Reserves
The Company does not have a third-party reserve evaluation.
Pembina LMR as of September 7, 2024
As of September 7, 2024, the Pembina property had a deemed net asset value of ($231,587) (deemed assets of $61,983 and deemed liabilities of $293,570), with an LMR ratio of 0.21.
Pembina Well List
Click here to download the complete well list in Excel.
GILBY
Township 42, Range 3, W5
At Gilby, Muddy holds a 12% non-operated working interest in two sections of land operated by Journey Energy Inc. The well 102/15-15-042-03W5/00 is producing oil from the Belly River Formation.
Average daily production net to Muddy from Gilby for the first six months of 2024 was approximately one boe/d, consisting of one barrel of oil per day.
Operating income net to Muddy from Gilby for the first six months of 2024 was approximately $1,300 per month, or $15,600 on an annualized basis.
At Gilby, Muddy holds a 12% non-operated working interest in two sections of land operated by Journey Energy Inc. The well 102/15-15-042-03W5/00 is producing oil from the Belly River Formation.
Average daily production net to Muddy from Gilby for the first six months of 2024 was approximately one boe/d, consisting of one barrel of oil per day.
Operating income net to Muddy from Gilby for the first six months of 2024 was approximately $1,300 per month, or $15,600 on an annualized basis.
Gilby, Alberta
Gross Production Group Plot of Muddy's Natural Gas Wells
Gilby Facilities
Muddy does not have an interest in any facilities at Gilby.
Gilby Reserves
The Company does not have a third-party reserve evaluation.
Gilby LMR as of September 7, 2024
The Company does not operate any wells or facilities at Gilby.
Gilby Well List
Click here to download the complete well list in Excel.
Muddy does not have an interest in any facilities at Gilby.
Gilby Reserves
The Company does not have a third-party reserve evaluation.
Gilby LMR as of September 7, 2024
The Company does not operate any wells or facilities at Gilby.
Gilby Well List
Click here to download the complete well list in Excel.
NON-PRODUCING PROPERTIES
Muddy holds working interests in certain non-producing properties located in the Bigstone, Bonanza, Cherhill, Chigwell, Drumheller, Ferrier, Garrington, Goodwin, Innisfail, Jumpbush, Knopcik, Pine Creek, Red Earth, Sylvan Lake, Utikuma, Waskahigan, Windfall and Worsley areas of Alberta.
Operating income net to Muddy from its non-producing properties for the first six months of 2024 was approximately ($4,200) per month or ($50,400) on an annualized basis.
Operating income net to Muddy from its non-producing properties for the first six months of 2024 was approximately ($4,200) per month or ($50,400) on an annualized basis.
Overview Map Showing the Location of Muddy's Non-Producing Properties
Non-Producing LMR as of September 7, 2024
The Company’s operated non-producing properties are located in the Chigwell, Waskahigan and Worsley areas of Alberta.
As of September 7, 2024, the non-producing properties had a deemed net asset value of ($343,186) (deemed assets of $0 and deemed liabilities of $343,186), with an LMR ratio of 0.00.
The Company’s operated non-producing properties are located in the Chigwell, Waskahigan and Worsley areas of Alberta.
As of September 7, 2024, the non-producing properties had a deemed net asset value of ($343,186) (deemed assets of $0 and deemed liabilities of $343,186), with an LMR ratio of 0.00.
Non-Producing Properties Well List
Click here to download the complete well list.
Click here to download the complete well list.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting offers relating to this process until 12:00 pm on Thursday December 5, 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.
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
Sayer Energy Advisors is accepting offers from interested parties until
noon on Thursday December 5, 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 Company 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 (tpavic@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: most recent net lease operating statements, summary land information, LMR information other relevant corporate and technical information.
Download Confidentiality Agreement
To receive further information on the Company please contact Tom Pavic, Ben Rye or Sydney Birkett at 403.266.6133.