Offering Details
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Current Offerings / Prairie Thunder Resources Ltd.
Prairie Thunder Resources Ltd.
Property DivestitureBid Deadline: December 5, 2024
12:00 PM
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OVERVIEW
Prairie Thunder Resources Ltd. (“Prairie Thunder” 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 Puskwa area of Alberta (the “Property”).
Average daily production net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 was approximately 94 boe/d, consisting of 94 bbl/d of oil.
Operating income net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 averaged approximately $56,000 per month, or $672,000 on an annualized basis.
As of August 3, 2024, the Puskwa property had a deemed net asset value of $3.0 million (deemed assets of $4.5 million and deemed liabilities of $1.5 million), with an LMR ratio of 3.03.
Average daily production net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 was approximately 94 boe/d, consisting of 94 bbl/d of oil.
Operating income net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 averaged approximately $56,000 per month, or $672,000 on an annualized basis.
As of August 3, 2024, the Puskwa property had a deemed net asset value of $3.0 million (deemed assets of $4.5 million and deemed liabilities of $1.5 million), with an LMR ratio of 3.03.
Overview Map Showing the Location of the Divestiture Property
PUSKWA
Township 73-75, Range 26 W5 - 2 W6
At Puskwa, Prairie Thunder holds primarily a 100% working interest in 45 sections of land. The Property is producing oil from the Wabamun Formation. The Property has great potential for development of the Montney reservoir. The Company has a Montney farmout agreement on 16.75 sections whereby it has farmed out the Montney rights in these lands. Further details relating to the farmout agreement will be provided in the virtual data room for parties that execute a confidentiality agreement.
At Puskwa, Prairie Thunder holds primarily a 100% working interest in 45 sections of land. The Property is producing oil from the Wabamun Formation. The Property has great potential for development of the Montney reservoir. The Company has a Montney farmout agreement on 16.75 sections whereby it has farmed out the Montney rights in these lands. Further details relating to the farmout agreement will be provided in the virtual data room for parties that execute a confidentiality agreement.
Average daily production net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 was approximately 94 boe/d, consisting of 94 bbl/d of oil.
Operating income net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 averaged approximately $56,000 per month, or $672,000 on an annualized basis.
Operating income net to Prairie Thunder from Puskwa for the twelve months ended June 30, 2024 averaged approximately $56,000 per month, or $672,000 on an annualized basis.
Puskwa, Alberta
Gross Production Group Plot of Prairie Thunder's Oil Wells
Gross Production Group Plot of Prairie Thunder's Oil Wells
Puskwa Upside
The Company has two Wabamun horizontal drilling locations on its lands at Puskwa. The Wabamun Formation is a highly fractured limestone reservoir. The horizontal target in the Wabamun is the main porosity interval found approximately 100 metres below the top of the Wabamun. The interval has porosity between 6%-10%. Light oil from the Wabamun at Puskwa is approximately 40°API.
Other prospective zones include the Charlie Lake Formation.
The Property also has great potential for development of the Montney reservoir. As shown on the following plat, Prairie Thunder has a Montney farmout agreement on 16.75 sections whereby it has farmed out the Montney rights in these lands. Further details relating to the farmout agreement will be provided in the virtual data room for parties that execute a confidentiality agreement.
The Company has two Wabamun horizontal drilling locations on its lands at Puskwa. The Wabamun Formation is a highly fractured limestone reservoir. The horizontal target in the Wabamun is the main porosity interval found approximately 100 metres below the top of the Wabamun. The interval has porosity between 6%-10%. Light oil from the Wabamun at Puskwa is approximately 40°API.
Other prospective zones include the Charlie Lake Formation.
The Property also has great potential for development of the Montney reservoir. As shown on the following plat, Prairie Thunder has a Montney farmout agreement on 16.75 sections whereby it has farmed out the Montney rights in these lands. Further details relating to the farmout agreement will be provided in the virtual data room for parties that execute a confidentiality agreement.
Puskwa Reserves
InSite Petroleum Consultants Ltd. (“InSite”) prepared an independent reserves evaluation of the Property (the “InSite Report”) as part of the Company’s year end reporting. The InSite Report is effective January 1, 2024 using InSite’s December 31, 2023 forecast pricing.
InSite estimates that, as at December 31, 2023, the Puskwa property contained remaining proved plus probable reserves of 642,000 barrels of oil, with an estimated net present value of $14.6 million using forecast pricing at a 10% discount.
InSite Petroleum Consultants Ltd. (“InSite”) prepared an independent reserves evaluation of the Property (the “InSite Report”) as part of the Company’s year end reporting. The InSite Report is effective January 1, 2024 using InSite’s December 31, 2023 forecast pricing.
InSite estimates that, as at December 31, 2023, the Puskwa property contained remaining proved plus probable reserves of 642,000 barrels of oil, with an estimated net present value of $14.6 million using forecast pricing at a 10% discount.
Puskwa Facilities
At Puskwa, Prairie Thunder owns interests in the following facilities:
At Puskwa, Prairie Thunder owns interests in the following facilities:
Details on the Company’s facilities will be made available to parties that execute a confidentiality agreement.
Puskwa Marketing
Prairie Thunder’s operated oil production from Puskwa is currently trucked from the multi-well battery at 05-14-26-074-01W6 and 15-03-074-01W6 and goes to Secure Energy Services Inc.’s La Glace terminal at 16-07-073-08W6.
Natural gas is consumed or flared onsite.
Seismic Overview
The Company has trade 3D seismic data over 10.25 sections at Puskwa, as illustrated on the following map. The Company’s interpretations of the seismic are available for viewing on a workstation, by parties which have executed a confidentiality agreement.
Puskwa Marketing
Prairie Thunder’s operated oil production from Puskwa is currently trucked from the multi-well battery at 05-14-26-074-01W6 and 15-03-074-01W6 and goes to Secure Energy Services Inc.’s La Glace terminal at 16-07-073-08W6.
Natural gas is consumed or flared onsite.
Seismic Overview
The Company has trade 3D seismic data over 10.25 sections at Puskwa, as illustrated on the following map. The Company’s interpretations of the seismic are available for viewing on a workstation, by parties which have executed a confidentiality agreement.
Puskwa LMR as of August 3, 2024
As of August 3, 2024, the Puskwa property had a deemed net asset value of $3.0 million (deemed assets of $4.5 million and deemed liabilities of $1.5 million), with an LMR ratio of 3.03.
As of August 3, 2024, the Puskwa property had a deemed net asset value of $3.0 million (deemed assets of $4.5 million and deemed liabilities of $1.5 million), with an LMR ratio of 3.03.
Puskwa Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Property 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 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 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 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 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 InSite 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.