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Current Offerings / Alvarez & Marsal Canada Inc. - CLEO Energy Corp.
Alvarez & Marsal Canada Inc. - CLEO Energy Corp.
Insolvency SaleBid Deadline: February 27, 2025
12:00 PM
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OVERVIEW
CLEO Energy Corp. (“CLEO” or the “Company”) has filed a Notice of Intention to Make a Proposal (the “NOI”) pursuant to section 50.4 (1) of the Bankruptcy and Insolvency Act (the “BIA”) and Alvarez & Marsal Canada Inc. (“A&M”) is acting as Proposal Trustee of CLEO for the NOI process. A sale and solicitation process (the “SSP”) is to be undertaken by the Company in its NOI proceedings. CLEO has engaged Sayer Energy Advisors to assist the Company with the SSP in order to solicit interest in the purchase of or investment in all or part of the business or operations of the Company or its undertaking, property and assets. Potential outcomes include, but are not limited to, a sale of the shares of the Company, the sale, in whole or in part, of all of the oil and natural gas assets held by CLEO, or a joint venture. A copy of the SSP is found here.
CLEO’s oil and natural gas interests are located in the Alliance, Atlee, Enchant/Taber, Fabyan, Hayter, Kessler, Neutral Hills, Sedgewick, Shorncliffe and Silver Heights areas of Alberta (the “Properties”).
Average daily sales production net to CLEO from the Properties for the first half of 2024 was approximately 990 boe/d, consisting of approximately 527 bbl/d of oil and natural gas liquids and approximately 2.8 MMcf/d of natural gas.
Current production from the Properties is approximately 460 boe/d, consisting of 395 bbl/d of oil and natural gas liquids and 390 Mcf/d of natural gas. The Company is currently reactivating several wells which it believes will add approximately 330 bbl/d of oil. Details of the reactivations will be made available in the virtual data room to parties that execute a confidentiality agreement.
CLEO’s main natural gas property at Fabyan was shut-in in October 2024 due to low natural gas prices. This field can be brought back on production, restoring approximately 2.0 MMcf/d.
CLEO controls the pipeline infrastructure in the area necessary for both oil development and associated natural gas egress, which is of great benefit for the future development of the Upper Mannville. The Properties have significant offsetting potential including the Viking and Upper Mannville Sparky oil reservoirs, which would require use of the Company’s pipeline infrastructure.
As of November 2, 2024, the Properties had a deemed net asset value of ($14.1 million) (deemed assets of $36.1 million and deemed liabilities of $50.2 million), with an LMR ratio of 0.72. These numbers do not include CLEO’s current security deposit with the Alberta Energy Regulator (“AER”) of approximately $720,000.
CLEO’s oil and natural gas interests are located in the Alliance, Atlee, Enchant/Taber, Fabyan, Hayter, Kessler, Neutral Hills, Sedgewick, Shorncliffe and Silver Heights areas of Alberta (the “Properties”).
Average daily sales production net to CLEO from the Properties for the first half of 2024 was approximately 990 boe/d, consisting of approximately 527 bbl/d of oil and natural gas liquids and approximately 2.8 MMcf/d of natural gas.
Current production from the Properties is approximately 460 boe/d, consisting of 395 bbl/d of oil and natural gas liquids and 390 Mcf/d of natural gas. The Company is currently reactivating several wells which it believes will add approximately 330 bbl/d of oil. Details of the reactivations will be made available in the virtual data room to parties that execute a confidentiality agreement.
CLEO’s main natural gas property at Fabyan was shut-in in October 2024 due to low natural gas prices. This field can be brought back on production, restoring approximately 2.0 MMcf/d.
CLEO controls the pipeline infrastructure in the area necessary for both oil development and associated natural gas egress, which is of great benefit for the future development of the Upper Mannville. The Properties have significant offsetting potential including the Viking and Upper Mannville Sparky oil reservoirs, which would require use of the Company’s pipeline infrastructure.
As of November 2, 2024, the Properties had a deemed net asset value of ($14.1 million) (deemed assets of $36.1 million and deemed liabilities of $50.2 million), with an LMR ratio of 0.72. These numbers do not include CLEO’s current security deposit with the Alberta Energy Regulator (“AER”) of approximately $720,000.
Overview Map Showing the Location of the Divestiture Properties
Corporate Overview
CLEO is a private junior oil and gas company with operated and non-operated working interests located in the Alliance, Atlee, Enchant/Taber, Fabyan, Hayter, Kessler, Neutral Hills, Sedgewick, Shorncliffe and Silver Heights areas of Alberta.
As at December 14, 2024, CLEO had total secured debt of approximately $6.7 million. The Company has a creditor obligation of approximately $24.1 million. As of January 5, 2025, CLEO has an interim debtor-in-possession financing of $750,000 available. As at December 31, 2022, CLEO had total unused Canadian income tax pools of approximately $8.1 million, including $6.6 million of non-capital losses.
Additional corporate information relating to CLEO will be provided to parties upon execution of a confidentiality agreement.
CLEO is a private junior oil and gas company with operated and non-operated working interests located in the Alliance, Atlee, Enchant/Taber, Fabyan, Hayter, Kessler, Neutral Hills, Sedgewick, Shorncliffe and Silver Heights areas of Alberta.
As at December 14, 2024, CLEO had total secured debt of approximately $6.7 million. The Company has a creditor obligation of approximately $24.1 million. As of January 5, 2025, CLEO has an interim debtor-in-possession financing of $750,000 available. As at December 31, 2022, CLEO had total unused Canadian income tax pools of approximately $8.1 million, including $6.6 million of non-capital losses.
Additional corporate information relating to CLEO will be provided to parties upon execution of a confidentiality agreement.
Production Overview
Average daily sales production net to CLEO from the Properties for the first half of 2024 was approximately 990 boe/d, consisting of approximately 527 bbl/d of oil and natural gas liquids and approximately 2.8 MMcf/d of natural gas.
Current production from the Properties is approximately 460 boe/d, consisting of 395 bbl/d of oil and natural gas liquids and 390 Mcf/d of natural gas. The Company is currently reactivating several wells which it believes will add approximately 330 bbl/d of oil. Details of the reactivations will be made available in the virtual data room to parties that execute a confidentiality agreement.
CLEO believes that with limited capital the current reactivation production capability is approximately 750 bbl/d of oil.
Average daily sales production net to CLEO from the Properties for the first half of 2024 was approximately 990 boe/d, consisting of approximately 527 bbl/d of oil and natural gas liquids and approximately 2.8 MMcf/d of natural gas.
Current production from the Properties is approximately 460 boe/d, consisting of 395 bbl/d of oil and natural gas liquids and 390 Mcf/d of natural gas. The Company is currently reactivating several wells which it believes will add approximately 330 bbl/d of oil. Details of the reactivations will be made available in the virtual data room to parties that execute a confidentiality agreement.
CLEO believes that with limited capital the current reactivation production capability is approximately 750 bbl/d of oil.
Shorncliffe had a large amount of reactivations in March/April 2024 and now has a net operating income of approximately $115,000/month.
Neutral Hills had a pipeline reactivation in August 2024 which resulted in a post-repair net operating income of approximately $40,000/month with the potential for multiple additional reactivations.
Neutral Hills had a pipeline reactivation in August 2024 which resulted in a post-repair net operating income of approximately $40,000/month with the potential for multiple additional reactivations.
Gross Production Group Plot of CLEO's Oil & Natural Gas Wells
LMR Summary
As of November 2, 2024, the Properties had a deemed net asset value of ($14.1 million) (deemed assets of $36.1 million and deemed liabilities of $50.2 million), with an LMR ratio of 0.72. These numbers do not include CLEO’s current security deposit with the AER of approximately $720,000.
As of November 2, 2024, the Properties had a deemed net asset value of ($14.1 million) (deemed assets of $36.1 million and deemed liabilities of $50.2 million), with an LMR ratio of 0.72. These numbers do not include CLEO’s current security deposit with the AER of approximately $720,000.
Note that the Fabyan, Taber, and part of the Silver Heights properties are currently shut-in. Reactivating these properties would drastically increase the deemed asset amount and restore lost production.
Infrastructure Overview
CLEO controls most of the pipeline infrastructure in the area necessary for both oil development and associated natural gas egress. The Properties have significant offsetting potential including the Viking and Upper Mannville Sparky oil reservoirs, which would require use of the Company’s pipeline infrastructure.
CLEO controls most of the pipeline infrastructure in the area necessary for both oil development and associated natural gas egress. The Properties have significant offsetting potential including the Viking and Upper Mannville Sparky oil reservoirs, which would require use of the Company’s pipeline infrastructure.
Seismic Overview
The Company has a license agreement on certain trade and proprietary 2D and 3D seismic data relating to the Properties, as shown on the following plat. Information relating to the seismic will be made available in the data room to parties that execute a confidentiality agreement.
The Company has a license agreement on certain trade and proprietary 2D and 3D seismic data relating to the Properties, as shown on the following plat. Information relating to the seismic will be made available in the data room to parties that execute a confidentiality agreement.
Reserves Overview
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of CLEO’s Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing. The Company does not have a current third-party reserve report reflecting the disposition of certain of its interests at Fabyan in late 2023. This disposition only affected the total proved and total proved plus probable reserve values. The Deloitte Report also includes reserves values and volumes for the Kessler and Atlee properties, which are being reclaimed.
Deloitte estimated that, as at December 31, 2022 the Properties excluding CLEO’s interests at Fabyan contained remaining proved plus probable reserves of 4.5 million barrels of oil and natural gas liquids and 3.5 Bcf of natural gas (5.1 million boe), with an estimated net present value of $46.9 million using forecast pricing at a 10% discount.
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of CLEO’s Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing. The Company does not have a current third-party reserve report reflecting the disposition of certain of its interests at Fabyan in late 2023. This disposition only affected the total proved and total proved plus probable reserve values. The Deloitte Report also includes reserves values and volumes for the Kessler and Atlee properties, which are being reclaimed.
Deloitte estimated that, as at December 31, 2022 the Properties excluding CLEO’s interests at Fabyan contained remaining proved plus probable reserves of 4.5 million barrels of oil and natural gas liquids and 3.5 Bcf of natural gas (5.1 million boe), with an estimated net present value of $46.9 million using forecast pricing at a 10% discount.
Marketing Overview
The Company has a crude oil marketing agreement with Trafigura Canada Limited and a CO2 contract with TC Energy Corporation.
CLEO has a sales contract in place with BP Canada Energy Group ULC for natural gas sales. Natural gas is sold into the Nova Gas Transmission Ltd. pipeline.
Well List
Click here to download the complete well list in Excel.
The Company has a crude oil marketing agreement with Trafigura Canada Limited and a CO2 contract with TC Energy Corporation.
CLEO has a sales contract in place with BP Canada Energy Group ULC for natural gas sales. Natural gas is sold into the Nova Gas Transmission Ltd. pipeline.
Well List
Click here to download the complete well list in Excel.
SILVER HEIGHTS
Township 38-39, Range 9-10 W4
At Silver Heights, CLEO holds largely a 98% working interest in approximately eight sections of land. Production at Silver Heights is primarily oil from the Ellerslie and Glauconitic Sandstone formations.
Average daily production net to CLEO from Silver Heights for the first half of 2024 was approximately 248 boe/d, consisting of 223 bbl/d oil and 149 Mcf/d of natural gas. Current production net to CLEO from Silver Heights is approximately 125 bbl/d of oil.
Peak production from Silver Heights was 345 boe/d in January 2023. Due to limited sustaining capital, production has declined. Basic workovers are required to increase production.
Operating income net to CLEO from Silver Heights for the first half of 2024 was approximately $197,600 per month.
Production at Silver Heights, has been greatly impacted. In the fourth quarter of 2024, 75 bbl/d of oil production was curtailed due to a natural gas conservation requirement. The property was fully shut-in from December 8, 2024 to January 14, 2025 due to an electrical cable theft. The process of restoring the production has begun and the field is currently producing approximately 118 bbl/d of oil. It is expected that the production will be restored back to is original rate prior to the end of the first quarter of 2025.
The Company has a vertical Ellerslie proved undeveloped drilling location booked in the Deloitte Report at 12-039-10W4 and an additional five internally identified unbooked vertical locations. These locations are low cost, (estimated at $600,000 per well). Offsetting analogs have been assigned total proved plus probable reserves of 50,000 barrels of oil per well.
Glauconitic recompletion candidates provide additional upside at Silver Heights. The Company has identified a large number of reactivation opportunities including the opportunity to reconfigure pressure support for the reservoir and increase production through expanded water handling.
At Silver Heights, CLEO holds largely a 98% working interest in approximately eight sections of land. Production at Silver Heights is primarily oil from the Ellerslie and Glauconitic Sandstone formations.
Average daily production net to CLEO from Silver Heights for the first half of 2024 was approximately 248 boe/d, consisting of 223 bbl/d oil and 149 Mcf/d of natural gas. Current production net to CLEO from Silver Heights is approximately 125 bbl/d of oil.
Peak production from Silver Heights was 345 boe/d in January 2023. Due to limited sustaining capital, production has declined. Basic workovers are required to increase production.
Operating income net to CLEO from Silver Heights for the first half of 2024 was approximately $197,600 per month.
Production at Silver Heights, has been greatly impacted. In the fourth quarter of 2024, 75 bbl/d of oil production was curtailed due to a natural gas conservation requirement. The property was fully shut-in from December 8, 2024 to January 14, 2025 due to an electrical cable theft. The process of restoring the production has begun and the field is currently producing approximately 118 bbl/d of oil. It is expected that the production will be restored back to is original rate prior to the end of the first quarter of 2025.
The Company has a vertical Ellerslie proved undeveloped drilling location booked in the Deloitte Report at 12-039-10W4 and an additional five internally identified unbooked vertical locations. These locations are low cost, (estimated at $600,000 per well). Offsetting analogs have been assigned total proved plus probable reserves of 50,000 barrels of oil per well.
Glauconitic recompletion candidates provide additional upside at Silver Heights. The Company has identified a large number of reactivation opportunities including the opportunity to reconfigure pressure support for the reservoir and increase production through expanded water handling.
Silver Heights, Alberta
Gross Production Group Plot
Silver Heights Facilities
CLEO has ownership in a multi-well battery at 14-14-039-10W4 with capacity of 1,260 bbl/d.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Silver Heights Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Silver Heights property contained remaining proved plus probable reserves of 2.2 million barrels of oil (2.2 million boe), with an estimated net present value of $27.8 million using forecast pricing at a 10% discount.
CLEO has ownership in a multi-well battery at 14-14-039-10W4 with capacity of 1,260 bbl/d.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Silver Heights Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Silver Heights property contained remaining proved plus probable reserves of 2.2 million barrels of oil (2.2 million boe), with an estimated net present value of $27.8 million using forecast pricing at a 10% discount.
Silver Heights LMR as of November 2, 2024
As of November 2, 2024, the Silver Heights property had a deemed net asset value of $5.9 million (deemed assets of $10.7 million and deemed liabilities of $4.8 million), with an LMR ratio of 2.22.
As of November 2, 2024, the Silver Heights property had a deemed net asset value of $5.9 million (deemed assets of $10.7 million and deemed liabilities of $4.8 million), with an LMR ratio of 2.22.
Silver Heights Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
SEDGEWICK
Township 40-42, Range 11-13 W4
At Sedgewick, CLEO holds a 100% working interest in approximately nine sections of land. Production at Sedgewick is primarily 28° API oil from the Ellerslie Formation.
Average daily production net to CLEO from Sedgewick for the first half of 2024 was approximately 61 boe/d, consisting of 53 bbl/d oil and natural gas liquids and 48 Mcf/d of natural gas. Current production net to CLEO from Sedgewick is approximately 35 boe/d, consisting of 25 bbl/d of oil and 61 Mcf/d of natural gas.
The Company believes the 15-05-042-12W4 pad has significant value and significant production potential, but will require a capital investment for a pipeline tie-in.
Operating income net to CLEO from Sedgewick for the first half of 2024 was approximately $54,300 per month.
The Company has identified 14 locations, including eight in the Upper Ellerslie and six Lower Ellerslie. Three of the six Lower Ellerslie horizontal locations are booked in the Deloitte Report.
The Company recently recompleted the two wells in the Glauconitic Sandstone Formation with positive results.
CLEO has existing infrastructure with clean oil currently trucked to the 16-04-042-12W4 battery.
Upside potential exists to recomplete and commingle Glauconitic sand with existing Mannville oil producers. The Upper Ellerslie has porosity of 18% to 30% and water saturation of 17% to 50%. The Lower Ellerslie has porosity of 23% to 28%.
At Sedgewick, CLEO holds a 100% working interest in approximately nine sections of land. Production at Sedgewick is primarily 28° API oil from the Ellerslie Formation.
Average daily production net to CLEO from Sedgewick for the first half of 2024 was approximately 61 boe/d, consisting of 53 bbl/d oil and natural gas liquids and 48 Mcf/d of natural gas. Current production net to CLEO from Sedgewick is approximately 35 boe/d, consisting of 25 bbl/d of oil and 61 Mcf/d of natural gas.
The Company believes the 15-05-042-12W4 pad has significant value and significant production potential, but will require a capital investment for a pipeline tie-in.
Operating income net to CLEO from Sedgewick for the first half of 2024 was approximately $54,300 per month.
The Company has identified 14 locations, including eight in the Upper Ellerslie and six Lower Ellerslie. Three of the six Lower Ellerslie horizontal locations are booked in the Deloitte Report.
The Company recently recompleted the two wells in the Glauconitic Sandstone Formation with positive results.
CLEO has existing infrastructure with clean oil currently trucked to the 16-04-042-12W4 battery.
Upside potential exists to recomplete and commingle Glauconitic sand with existing Mannville oil producers. The Upper Ellerslie has porosity of 18% to 30% and water saturation of 17% to 50%. The Lower Ellerslie has porosity of 23% to 28%.
Sedgewick, Alberta
Gross Production Group Plot
Sedgewick Facilities
CLEO has an interest in a multi-well oil battery at 16-04-042-12W4 with 250 bbl/d of capacity.
Clean oil is trucked to the 16-04-042-12W4 battery.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Sedgewick Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Sedgewick property contained remaining proved plus probable reserves of 514,000 barrels of oil and natural gas liquids and 336 MMcf of natural gas (570,000 boe), with an estimated net present value of $7.2 million using forecast pricing at a 10% discount.
CLEO has an interest in a multi-well oil battery at 16-04-042-12W4 with 250 bbl/d of capacity.
Clean oil is trucked to the 16-04-042-12W4 battery.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Sedgewick Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Sedgewick property contained remaining proved plus probable reserves of 514,000 barrels of oil and natural gas liquids and 336 MMcf of natural gas (570,000 boe), with an estimated net present value of $7.2 million using forecast pricing at a 10% discount.
Sedgewick LMR as of November 2, 2024
As of November 2, 2024, the Sedgewick property had a deemed net asset value of $317,320 (deemed assets of $2.5 million and deemed liabilities of $2.1 million), with an LMR ratio of 1.15.
As of November 2, 2024, the Sedgewick property had a deemed net asset value of $317,320 (deemed assets of $2.5 million and deemed liabilities of $2.1 million), with an LMR ratio of 1.15.
Sedgewick Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
ALLIANCE
Township 40, Range 12-13 W4
At Alliance, CLEO holds a 100% working interest in three quarter sections of land. The Company has stable, low-decline oil production from the Viking Formation. CLEO also has one horizontal drilling location booked in the Deloitte Report on Section 04-03-040-12W4 targeting the same Viking pool.
Average daily production net to CLEO from the Alliance property for the first half of 2024 was approximately 15 barrels of oil per day.
Operating income net to CLEO from Alliance for the first half of 2024 was approximately $24,900 per month.
At Alliance, CLEO holds a 100% working interest in three quarter sections of land. The Company has stable, low-decline oil production from the Viking Formation. CLEO also has one horizontal drilling location booked in the Deloitte Report on Section 04-03-040-12W4 targeting the same Viking pool.
Average daily production net to CLEO from the Alliance property for the first half of 2024 was approximately 15 barrels of oil per day.
Operating income net to CLEO from Alliance for the first half of 2024 was approximately $24,900 per month.
Alliance, Alberta
Gross Production Group Plot
Viking Formation
At Alliance, the Viking reservoir is comprised of sandstone within coarsening-upwards cycles from shale to sandstone. The sediments were deposited in the Late Cretaceous period in a shoreface environment.
The following well logs show the Viking Formation at Alliance.
At Alliance, the Viking reservoir is comprised of sandstone within coarsening-upwards cycles from shale to sandstone. The sediments were deposited in the Late Cretaceous period in a shoreface environment.
The following well logs show the Viking Formation at Alliance.
1994450AB Provost 102/03-03-040-12W4/0
Viking Formation Type Log
Viking Formation Type Log
Alliance Facilities
CLEO does not have ownership in any facilities at Alliance.
Alliance Marketing
Oil from Alliance is trucked to Secure Energy Services Inc.’s facility at 12-30-034-09W4 and sold to Secure.
Alliance Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Alliance property contained remaining proved plus probable reserves of approximately 95,000 barrels of oil, with an estimated net present value of $1.3 million using forecast pricing at a 10% discount.
Alliance LMR as of November 2, 2024
As of November 2, 2024, the Alliance property had a deemed net asset value of $342,434 (deemed assets of $586,356 and deemed liabilities of $243,922), with an LMR ratio of 2.40.
As of November 2, 2024, the Alliance property had a deemed net asset value of $342,434 (deemed assets of $586,356 and deemed liabilities of $243,922), with an LMR ratio of 2.40.
Alliance Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
NEUTRAL HILLS
Township 35-37, Range 4-7 W4
At Neutral Hills, CLEO holds primarily a 100% working interest in certain lands and wells located in the north block.
CLEO also holds a 50% working interest operated by Prairie Provident Resources Inc. in the south block, and other minor non-operated working interests. Neutral Hills South has been shut-in since December 2023. Production at Neutral Hills is primarily oil from the Dina Formation.
Average daily production net to CLEO from Neutral Hills for the first half of 2024 was approximately 54 boe/d, consisting of 51 bbl/d oil and natural gas liquids and 16 Mcf/d of natural gas. The Company has identified 25 bbl/d of oil to be brought back on production as soon as possible and an additional 50 bbl/d to be brought back on with an estimated cost of approximately $300,000.
Current production net to CLEO from Neutral Hills is approximately 90 boe/d. In 2024, CLEO spent upwards of $500,000 on pipeline repairs and recompletions to restore approximately 85 bbl/d of oil production that was down due to a pipeline break. With the pipeline repairs, the field has long lasting pipeline integrity. CLEO has identified drilling upside in the Rex, Dina and Cummings formations, with five locations booked in the Deloitte Report. CLEO has also identified three unbooked Rex multi-laterals and two Dina horizontal wells and an additional 23 internally identified unbooked Dina locations. CLEO’s booked inventory at Neutral Hills is the only property where it has booked multilateral wells.
Operating income net to CLEO from Neutral Hills for the first half of 2024 was approximately ($80,100) per month. Neutral Hills had a major pipeline upgrade and reactivation in August 2024 which resulted in a post-repair net operating income of approximately $40,000/month. Minor workovers will immediately bring on an additional 50 bbl/d of oil.
The Company has also identified numerous Cummings recompletion opportunities at Neutral Hills, as well as a potential opportunity for reduction in operating expenses through power generation.
At Neutral Hills, CLEO holds primarily a 100% working interest in certain lands and wells located in the north block.
CLEO also holds a 50% working interest operated by Prairie Provident Resources Inc. in the south block, and other minor non-operated working interests. Neutral Hills South has been shut-in since December 2023. Production at Neutral Hills is primarily oil from the Dina Formation.
Average daily production net to CLEO from Neutral Hills for the first half of 2024 was approximately 54 boe/d, consisting of 51 bbl/d oil and natural gas liquids and 16 Mcf/d of natural gas. The Company has identified 25 bbl/d of oil to be brought back on production as soon as possible and an additional 50 bbl/d to be brought back on with an estimated cost of approximately $300,000.
Current production net to CLEO from Neutral Hills is approximately 90 boe/d. In 2024, CLEO spent upwards of $500,000 on pipeline repairs and recompletions to restore approximately 85 bbl/d of oil production that was down due to a pipeline break. With the pipeline repairs, the field has long lasting pipeline integrity. CLEO has identified drilling upside in the Rex, Dina and Cummings formations, with five locations booked in the Deloitte Report. CLEO has also identified three unbooked Rex multi-laterals and two Dina horizontal wells and an additional 23 internally identified unbooked Dina locations. CLEO’s booked inventory at Neutral Hills is the only property where it has booked multilateral wells.
Operating income net to CLEO from Neutral Hills for the first half of 2024 was approximately ($80,100) per month. Neutral Hills had a major pipeline upgrade and reactivation in August 2024 which resulted in a post-repair net operating income of approximately $40,000/month. Minor workovers will immediately bring on an additional 50 bbl/d of oil.
The Company has also identified numerous Cummings recompletion opportunities at Neutral Hills, as well as a potential opportunity for reduction in operating expenses through power generation.
Neutral Hills, Alberta
Gross Production Group Plot
Neutral Hills Facilities
CLEO has ownership in two multi-well oil batteries at Neutral Hills at 15-02-037-07W4 battery and 04-15-035-06W4 with capacity of 1,250 bbl/d.
Production is pipeline connected to Inter Pipeline Ltd.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Neutral Hills Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Neutral Hills property contained remaining proved plus probable reserves of 845,000 barrels of oil and natural gas liquids and 151 MMcf of natural gas (870,000 boe), with an estimated net present value of $4.2 million using forecast pricing at a 10% discount.
CLEO has ownership in two multi-well oil batteries at Neutral Hills at 15-02-037-07W4 battery and 04-15-035-06W4 with capacity of 1,250 bbl/d.
Production is pipeline connected to Inter Pipeline Ltd.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Neutral Hills Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Neutral Hills property contained remaining proved plus probable reserves of 845,000 barrels of oil and natural gas liquids and 151 MMcf of natural gas (870,000 boe), with an estimated net present value of $4.2 million using forecast pricing at a 10% discount.
Neutral Hills LMR as of November 2, 2024
As of November 2, 2024, the Neutral Hills property had a deemed net asset value of ($3.4 million) (deemed assets of $2.8 million and deemed liabilities of $6.2 million), with an LMR ratio of 0.45.
As of November 2, 2024, the Neutral Hills property had a deemed net asset value of ($3.4 million) (deemed assets of $2.8 million and deemed liabilities of $6.2 million), with an LMR ratio of 0.45.
Neutral Hills Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
SHORNCLIFFE
Township 40, Range 7-8 W4
At Shorncliffe, CLEO holds largely a 100% working interest in 4.75 sections of land, as well as a 25% non-operated working interest.
The Company also has an interest in certain non-operated wells which are operated by Harvest Operations Corp. Production at Shorncliffe is primarily 20° API oil from the Ellerslie, Glauconitic Sandstone and Basal Quartz formations.
Average daily production net to CLEO from Shorncliffe for the first half of 2024 was approximately 135 bbl/d oil. Current production net to CLEO from Shorncliffe is approximately 95 bbl/d of oil.
Operating income net to CLEO from Shorncliffe for the first half of 2024 was approximately $18,100 per month. Shorncliffe had a large amount of reactivations in March/April 2024 and now has a net operating income of approximately $115,000/month.
The Shorncliffe property is the location of the Company’s main field office. The property has two producing fields which are connected to a central battery which is pipeline connected to Inter Pipeline Ltd.
CLEO believes that additional water handling and conversion to a new water injection well could support an increase in overall production levels.
At Shorncliffe, CLEO holds largely a 100% working interest in 4.75 sections of land, as well as a 25% non-operated working interest.
The Company also has an interest in certain non-operated wells which are operated by Harvest Operations Corp. Production at Shorncliffe is primarily 20° API oil from the Ellerslie, Glauconitic Sandstone and Basal Quartz formations.
Average daily production net to CLEO from Shorncliffe for the first half of 2024 was approximately 135 bbl/d oil. Current production net to CLEO from Shorncliffe is approximately 95 bbl/d of oil.
Operating income net to CLEO from Shorncliffe for the first half of 2024 was approximately $18,100 per month. Shorncliffe had a large amount of reactivations in March/April 2024 and now has a net operating income of approximately $115,000/month.
The Shorncliffe property is the location of the Company’s main field office. The property has two producing fields which are connected to a central battery which is pipeline connected to Inter Pipeline Ltd.
CLEO believes that additional water handling and conversion to a new water injection well could support an increase in overall production levels.
Shorncliffe, Alberta
Gross Production Group Plot
Shorncliffe Facilities
CLEO has ownership in a central battery at 01-22-040-08 with capacity of 630 bbl/d.
Production is pipeline connected to Inter Pipeline Ltd.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Shorncliffe Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Shorncliffe property contained remaining proved plus probable reserves of 431,000 barrels of oil (431,000 boe), with an estimated net present value of $2.1 million using forecast pricing at a 10% discount.
CLEO has ownership in a central battery at 01-22-040-08 with capacity of 630 bbl/d.
Production is pipeline connected to Inter Pipeline Ltd.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Shorncliffe Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Shorncliffe property contained remaining proved plus probable reserves of 431,000 barrels of oil (431,000 boe), with an estimated net present value of $2.1 million using forecast pricing at a 10% discount.
Shorncliffe LMR as of November 2, 2024
As of November 2, 2024, the Shorncliffe property had a deemed net asset value of $517,841 (deemed assets of $5.3 million and deemed liabilities of $4.8 million), with an LMR ratio of 1.11.
As of November 2, 2024, the Shorncliffe property had a deemed net asset value of $517,841 (deemed assets of $5.3 million and deemed liabilities of $4.8 million), with an LMR ratio of 1.11.
Shorncliffe Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
FABYAN
Township 41-46, Range 6-11 W4
At Fabyan, CLEO holds largely a 100% working interest in approximately 120 sections of land. Production at Fabyan is primarily shallow natural gas from the Viking Formation.
Current production from Fabyan is shut-in.
The Company believes the 100/11-10-045-07W4/3 Sparky and Colony well at Fabyan can generate approximately $250,000 per year in net operating income. There is also potential for low-risk multilateral development.
Average daily production net to CLEO from Fabyan for the first half of 2024 was approximately 345 boe/d, consisting of 1,978 Mcf/d of natural gas and 15 bbl/d oil and natural gas liquids.
Operating income net to CLEO from Fabyan for the first half of 2024 was approximately ($184,600) per month.
CLEO believes there is potential for future power generation or Bitcoin mining at Fabyan.
At Fabyan, CLEO holds largely a 100% working interest in approximately 120 sections of land. Production at Fabyan is primarily shallow natural gas from the Viking Formation.
Current production from Fabyan is shut-in.
The Company believes the 100/11-10-045-07W4/3 Sparky and Colony well at Fabyan can generate approximately $250,000 per year in net operating income. There is also potential for low-risk multilateral development.
Average daily production net to CLEO from Fabyan for the first half of 2024 was approximately 345 boe/d, consisting of 1,978 Mcf/d of natural gas and 15 bbl/d oil and natural gas liquids.
Operating income net to CLEO from Fabyan for the first half of 2024 was approximately ($184,600) per month.
CLEO believes there is potential for future power generation or Bitcoin mining at Fabyan.
Infrastructure
CLEO controls all of the pipeline infrastructure in the area necessary for both oil development and associated natural gas egress. The area has significant offsetting potential including the Viking and Upper Mannville Sparky oil reservoirs, which would require use of the Company’s pipeline infrastructure.
Further details relating to CLEO’s pipeline infrastructure will be available in the virtual data room for parties that execute a confidentiality agreement.
Fabyan Facilities
CLEO controls all of the pipeline infrastructure in the area necessary for both oil development and associated natural gas egress. The area has significant offsetting potential including the Viking and Upper Mannville Sparky oil reservoirs, which would require use of the Company’s pipeline infrastructure.
Further details relating to CLEO’s pipeline infrastructure will be available in the virtual data room for parties that execute a confidentiality agreement.
Fabyan Facilities
CLEO does not have ownership in any facilities at Fabyan. The Company has a natural gas processing and handling agreement in place with Durham Creek Energy Ltd. under which CLEO’s natural gas is processed at the Fabyan 06-08-045-07W4 natural gas plant for a handling charge of $0.55/Mcf.
Fabyan Reserves
The Company does not have a current third-party reserve report reflecting the disposition of certain of its interests at Fabyan in late 2013.
Fabyan LMR as of November 2, 2024
As of November 2, 2024, the Fabyan property had a deemed net asset value of ($13.3 million) (deemed assets of $10.1 million and deemed liabilities of $23.3 million), with an LMR ratio of 0.43.
As of November 2, 2024, the Fabyan property had a deemed net asset value of ($13.3 million) (deemed assets of $10.1 million and deemed liabilities of $23.3 million), with an LMR ratio of 0.43.
The Company recognizes there are a significant number of abandoned wells, however; a large amount of the liabilities at Fabyan are associated to reclamation only.
Fabyan Well List
Click here to download the complete well list in Excel.
Fabyan Well List
Click here to download the complete well list in Excel.
ENCHANT/TABER
Township 9-14, Range 14-20 W4
At Enchant/Taber, CLEO holds largely a 99.7% working interest in approximately 36 sections of land. Production at Enchant consists of stable, low-decline natural gas.
CLEO currently has a Bitcoin mining operation at Enchant.
Average daily production net to CLEO from Enchant for the first half of 2024 was approximately 20 boe/d, consisting of 121 Mcf/d of natural gas.
The Taber property is currently shut-in.
Average daily production net to CLEO from Taber for the first half of 2024 was approximately 56 boe/d, consisting of 335 Mcf/d of natural gas.
Operating income net to CLEO from Enchant for the first half of 2024 was approximately ($6,200) per month.
Operating income net to CLEO from Taber for the first half of 2024 was approximately ($15,000) per month.
At Enchant/Taber, CLEO holds largely a 99.7% working interest in approximately 36 sections of land. Production at Enchant consists of stable, low-decline natural gas.
CLEO currently has a Bitcoin mining operation at Enchant.
Average daily production net to CLEO from Enchant for the first half of 2024 was approximately 20 boe/d, consisting of 121 Mcf/d of natural gas.
The Taber property is currently shut-in.
Average daily production net to CLEO from Taber for the first half of 2024 was approximately 56 boe/d, consisting of 335 Mcf/d of natural gas.
Operating income net to CLEO from Enchant for the first half of 2024 was approximately ($6,200) per month.
Operating income net to CLEO from Taber for the first half of 2024 was approximately ($15,000) per month.
Enchant, Alberta
Gross Production Group Plot
Taber, Alberta
Gross Production Group Plot
Enchant/Taber Facilities
CLEO currently has a Bitcoin mining operation at Enchant.
Natural gas egress at Taber is through ATCO sales line connected to TC Energy through a CLEO owned facility.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Enchant/Taber Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Enchant property contained remaining proved plus probable reserves of 1.2 Bcf of natural gas (200,000 boe), with an estimated net present value of $838,000 using forecast pricing at a 10% discount.
CLEO currently has a Bitcoin mining operation at Enchant.
Natural gas egress at Taber is through ATCO sales line connected to TC Energy through a CLEO owned facility.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Enchant/Taber Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Enchant property contained remaining proved plus probable reserves of 1.2 Bcf of natural gas (200,000 boe), with an estimated net present value of $838,000 using forecast pricing at a 10% discount.
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Taber property contained remaining proved plus probable reserves of 946 MMcf of natural gas (158,000 boe), with an estimated net present value of $847,000 using forecast pricing at a 10% discount.
Deloitte estimated that, as at December 31, 2022, the Taber property contained remaining proved plus probable reserves of 946 MMcf of natural gas (158,000 boe), with an estimated net present value of $847,000 using forecast pricing at a 10% discount.
Enchant/Taber LMR as of November 2, 2024
As of November 2, 2024, the Enchant property had a deemed net asset value of ($897,078) (deemed assets of $547,146 and deemed liabilities of $1.4 million), with an LMR ratio of 0.38.
As of November 2, 2024, the Enchant property had a deemed net asset value of ($897,078) (deemed assets of $547,146 and deemed liabilities of $1.4 million), with an LMR ratio of 0.38.
As of November 2, 2024, the Taber property had a deemed net asset value of ($119,148) (deemed assets of $1.5 million and deemed liabilities of $1.5 million), with an LMR ratio 0.93.
Enchant/Taber Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
HAYTER
Township 40-41, Range 1 W4
At Hayter, CLEO holds primarily minor non-operated working interest in approximately one section of land. Production at Hayter is operated by Harvest Operations Corp. and Rife Resources Ltd.
Average daily production net to CLEO from Hayter for the first half of 2024 was approximately 6 boe/d, consisting of 5 bbl/d oil and 3 Mcf/d of natural gas. There is no current production net to CLEO from Hayter.
Operating income net to CLEO from Hayter for the first half of 2024 was approximately ($28,300) per month.
At Hayter, CLEO holds primarily minor non-operated working interest in approximately one section of land. Production at Hayter is operated by Harvest Operations Corp. and Rife Resources Ltd.
Average daily production net to CLEO from Hayter for the first half of 2024 was approximately 6 boe/d, consisting of 5 bbl/d oil and 3 Mcf/d of natural gas. There is no current production net to CLEO from Hayter.
Operating income net to CLEO from Hayter for the first half of 2024 was approximately ($28,300) per month.
Hayter, Alberta
Gross Production Group Plot
Hayter Facilities
CLEO does not have ownership in any facilities at Hayter.
Hayter Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Hayter property contained remaining proved plus probable reserves of 60,000 barrels of oil and natural gas liquids and 193 MMcf of natural gas (92,000 boe), with an estimated net present value of ($413,000) using forecast pricing at a 10% discount.
CLEO does not have ownership in any facilities at Hayter.
Hayter Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Hayter property contained remaining proved plus probable reserves of 60,000 barrels of oil and natural gas liquids and 193 MMcf of natural gas (92,000 boe), with an estimated net present value of ($413,000) using forecast pricing at a 10% discount.
The Hayter reserves table includes reserves values and volumes for the non-operated portions of the Silver Heights, Sedgewick, Kessler and Fabyan properties.
Hayter LMR as of November 2, 2024
As of November 2, 2024, the Hayter property had a deemed net asset value of ($540,786) (deemed assets of $0 and deemed liabilities of $540,786), with an LMR ratio of 0.00.
Hayter LMR as of November 2, 2024
As of November 2, 2024, the Hayter property had a deemed net asset value of ($540,786) (deemed assets of $0 and deemed liabilities of $540,786), with an LMR ratio of 0.00.
Hayter Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
ATLEE
Township 21-22, Range 7 W4
At Atlee, CLEO holds largely a 100% working interest in three sections of land. Production at Atlee is 13° API oil from the Glauconitic Sandstone Formation.
The Atlee property is currently in the process of being reclaimed.
Average daily production net to CLEO from the Atlee property for the first half of 2024 was approximately 50 boe/d, consisting of 29 barrels of oil per day and 124 Mcf/d of natural gas.
Operating income net to CLEO from Atlee for the first half of 2024 was approximately ($19,000).
At Atlee, CLEO holds largely a 100% working interest in three sections of land. Production at Atlee is 13° API oil from the Glauconitic Sandstone Formation.
The Atlee property is currently in the process of being reclaimed.
Average daily production net to CLEO from the Atlee property for the first half of 2024 was approximately 50 boe/d, consisting of 29 barrels of oil per day and 124 Mcf/d of natural gas.
Operating income net to CLEO from Atlee for the first half of 2024 was approximately ($19,000).
Atlee Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Atlee property contained remaining proved plus probable reserves of 646 MMcf of natural gas and 99,000 barrels of oil (207,000 boe), with an estimated net present value of $1.4 million using forecast pricing at a 10% discount.
Atlee LMR as of November 2, 2024
As of November 2, 2024, the Atlee property had a deemed net asset value of $182,453 (deemed assets of $1.8 million and deemed liabilities of $1.6 million), with an LMR ratio of 2.47.
As of November 2, 2024, the Atlee property had a deemed net asset value of $182,453 (deemed assets of $1.8 million and deemed liabilities of $1.6 million), with an LMR ratio of 2.47.
Atlee Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
KESSLER
Township 38-40, Range 5-10 W4
At Kessler, CLEO holds various operated and non-operated working interests in approximately 16 sections of land with production from the Mannville Group.
The Kessler property is currently in the process of being reclaimed.
Average daily production net to CLEO from Kessler for the first half of 2024 was approximately 2 boe/d, consisting of 1 bbl/d oil and 4 Mcf/d of natural gas.
Operating income net to CLEO from Kessler for the first half of 2024 was approximately ($62,000) per month.
At Kessler, CLEO holds various operated and non-operated working interests in approximately 16 sections of land with production from the Mannville Group.
The Kessler property is currently in the process of being reclaimed.
Average daily production net to CLEO from Kessler for the first half of 2024 was approximately 2 boe/d, consisting of 1 bbl/d oil and 4 Mcf/d of natural gas.
Operating income net to CLEO from Kessler for the first half of 2024 was approximately ($62,000) per month.
Kessler Reserves
Deloitte LLP (“Deloitte”) prepared an independent reserves evaluation of the Properties (the “Deloitte Report”) as part of the Company’s year-end reporting. The Deloitte Report is effective December 31, 2022 using Deloitte’s January 1, 2023 forecast pricing.
Deloitte estimated that, as at December 31, 2022, the Kessler property contained remaining proved plus probable reserves of approximately 213,000 barrels of oil, with an estimated net present value of $1.7 million using forecast pricing at a 10% discount.
Kessler LMR as of November 2, 2024
As of November 2, 2024, the Kessler property had a deemed net asset value of ($3.1 million) (deemed assets of $288,372 and deemed liabilities of $3.4 million), with an LMR ratio of 0.09.
As of November 2, 2024, the Kessler property had a deemed net asset value of ($3.1 million) (deemed assets of $288,372 and deemed liabilities of $3.4 million), with an LMR ratio of 0.09.
Kessler 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 offers, as outlined in the SSP, relating to this process until 12:00 pm on Thursday February 27, 2025.
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 offers, as outlined in the SSP, from
interested parties until noon on Thursday February 27, 2025.
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: summary land information, the Deloitte Report, LMR information, most recent net operations summary, detailed facilities information and other relevant corporate, financial 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.