Offering Details
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Current Offerings / MNP Ltd. - Prospect Oil & Gas Management Ltd.
MNP Ltd. - Prospect Oil & Gas Management Ltd.
Bankruptcy SaleBid Deadline: May 15, 2025
12:00 PM
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OVERVIEW
On January 23, 2025, Prospect Oil & Gas Management Ltd. (“Prospect” or the “Company”) filed an Assignment in Bankruptcy and MNP Ltd. (“MNP” or the “Trustee”) was appointed as Trustee of Prospect. Sayer Energy Advisors has been engaged to assist the Trustee with the sale of Prospect’s oil and natural gas properties located in the Brooks/Bantry and Namaka areas of southern Alberta (the “Properties”).
The Properties have been shut-in since September 2024.
Average daily sales production net to Prospect from the Properties for the nine months ended September 30, 2024 was approximately 140 boe/d, consisting of approximately 843 Mcf/d of natural gas.
Operating income net to Prospect from the Properties for the nine months ended September 30, 2024 was approximately ($81,000) per month, or ($972,000) on an annualized basis.
As of March 25, 2025, the Properties had a deemed liability value of $4.4 million.
Further details relating to the Properties will be available in the virtual data room for parties that execute a confidentiality agreement.
The Properties have been shut-in since September 2024.
Average daily sales production net to Prospect from the Properties for the nine months ended September 30, 2024 was approximately 140 boe/d, consisting of approximately 843 Mcf/d of natural gas.
Operating income net to Prospect from the Properties for the nine months ended September 30, 2024 was approximately ($81,000) per month, or ($972,000) on an annualized basis.
As of March 25, 2025, the Properties had a deemed liability value of $4.4 million.
Further details relating to the Properties will be available in the virtual data room for parties that execute a confidentiality agreement.
Overview Map Showing the Location of the Divestiture Properties
Production Overview
The Properties have been shut-in since September 2024.
Average daily sales production net to Prospect from the Properties for the nine months ended September 30, 2024 was approximately 140 boe/d, consisting of approximately 843 Mcf/d of natural gas.
The Properties have been shut-in since September 2024.
Average daily sales production net to Prospect from the Properties for the nine months ended September 30, 2024 was approximately 140 boe/d, consisting of approximately 843 Mcf/d of natural gas.
Gross Production Group Plot of Prospect's Natural Gas Wells
Liability Assessment
As of March 25, 2025, the Properties had a deemed liability value of $4.4 million.
Seismic Overview
The Company has seismic data relating to the Namaka property. Information relating to the seismic will be made available to parties that execute a confidentiality agreement.
Reserves Overview
The Company does not have a third-party reserve report.
Marketing Overview
The Company previously marketed its natural gas through Fulcrum Energy Management Inc. whereby natural gas was sold through Nova Gas Transmission Ltd. meter stations at Gleichen #1480, Tillebrook #1314 and Bantry Northwest #1181.
As of March 25, 2025, the Properties had a deemed liability value of $4.4 million.
Seismic Overview
The Company has seismic data relating to the Namaka property. Information relating to the seismic will be made available to parties that execute a confidentiality agreement.
Reserves Overview
The Company does not have a third-party reserve report.
Marketing Overview
The Company previously marketed its natural gas through Fulcrum Energy Management Inc. whereby natural gas was sold through Nova Gas Transmission Ltd. meter stations at Gleichen #1480, Tillebrook #1314 and Bantry Northwest #1181.
BROOKS/BANTRY
Township 18-19, Range 13-14 W4
At Brooks/Bantry, Prospect holds various operated working interests in approximately 10 sections of land with P&NG rights from the top of the Medicine Hat Formation to basement. At Brooks, the Company’s working interests range between 50%-100% and at Bantry, the Company’s working interests are mainly 65.63%. Production at Brooks/Bantry is primarily natural gas from the Milk River and Medicine Hat formations. The Company believes there is a 20 years reserve life due to the low-decline nature of the production.
Average daily production net to Prospect from Brooks/Bantry for the nine months ended September 30, 2024 was approximately 103 boe/d, consisting of 611 Mcf/d of natural gas.
Operating income net to Prospect from Brooks/Bantry for the nine months ended September 30, 2024 was approximately ($59,000) per month, or ($708,000) on an annualized basis.
At Brooks/Bantry, Prospect identified the potential to re-enter wellbores and complete the Belly River Formation, which the Company believes is a low capital cost ($25,000 per well) in comparison to new drilling. Prospect expects between 30-85 Mcf/d of natural gas production could be added from each recompletion by setting a bridge plug, casing and perforating the wellbore in the Belly River zone and implementing a small frac.
The Company also identified upside potential for oil and natural gas drilling in the Basal Quartz Formation at Brooks/Bantry.
At Brooks/Bantry, Prospect holds various operated working interests in approximately 10 sections of land with P&NG rights from the top of the Medicine Hat Formation to basement. At Brooks, the Company’s working interests range between 50%-100% and at Bantry, the Company’s working interests are mainly 65.63%. Production at Brooks/Bantry is primarily natural gas from the Milk River and Medicine Hat formations. The Company believes there is a 20 years reserve life due to the low-decline nature of the production.
Average daily production net to Prospect from Brooks/Bantry for the nine months ended September 30, 2024 was approximately 103 boe/d, consisting of 611 Mcf/d of natural gas.
Operating income net to Prospect from Brooks/Bantry for the nine months ended September 30, 2024 was approximately ($59,000) per month, or ($708,000) on an annualized basis.
At Brooks/Bantry, Prospect identified the potential to re-enter wellbores and complete the Belly River Formation, which the Company believes is a low capital cost ($25,000 per well) in comparison to new drilling. Prospect expects between 30-85 Mcf/d of natural gas production could be added from each recompletion by setting a bridge plug, casing and perforating the wellbore in the Belly River zone and implementing a small frac.
The Company also identified upside potential for oil and natural gas drilling in the Basal Quartz Formation at Brooks/Bantry.
Brooks, Alberta
Gross Production Group Plot
Bantry, Alberta
Gross Production Group Plot
Brooks/Bantry Facilities
Prospect has a 100% working interest in a natural gas gathering system and natural gas compressor station at 14-20-18-13W4/00.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Brooks/Bantry Reserves
The Company does not have a third-party reserve report.
Brooks/Bantry Liability Assessment
As of March 25, 2025, the Brooks/Bantry property had a deemed liability value of $2.9 million.
Brooks/Bantry Well List
Click here to download the complete well list in Excel.
Prospect has a 100% working interest in a natural gas gathering system and natural gas compressor station at 14-20-18-13W4/00.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Brooks/Bantry Reserves
The Company does not have a third-party reserve report.
Brooks/Bantry Liability Assessment
As of March 25, 2025, the Brooks/Bantry property had a deemed liability value of $2.9 million.
Brooks/Bantry Well List
Click here to download the complete well list in Excel.
NAMAKA
Township 22-23, Range 23-25 W4
At Namaka, Prospect holds high working interests, generally between 90%-100% in approximately 13 sections of land with P&NG rights from surface to basement. Production at Namaka is from the Belly River, Ellerslie and Viking formations. In addition, the Company holds a 28.57% working interest in one producing Viking natural gas well Persist Oil Entice 100/10-14-022-25W4/00 operated by Persist Oil & Gas Inc.
Average daily production net to Prospect from Namaka for the nine months ended September 30, 2024 was approximately 39 boe/d, consisting of 232 Mcf/d of natural gas.
Operating income net to Prospect from Namaka for the nine months ended September 30, 2024 was approximately ($22,000) per month, or ($264,000) on an annualized basis.
The Company had recognized good shut-in pressure in the Ellerslie Formation (1,200 PSI). There is also potential for drilling up to 6 wells in the Ellerslie Formation and infill drilling in the Belly River Formation.
The Company had identified upside potential to perforate certain wells in the Belly River Formation to increase production at Namaka. The wells Prospect Strath 00/11-17-022-24W4/0 and Prospect Strath 00/13-20-022-23W4/0 have shown traces of 32° API oil.
At Namaka, Prospect holds high working interests, generally between 90%-100% in approximately 13 sections of land with P&NG rights from surface to basement. Production at Namaka is from the Belly River, Ellerslie and Viking formations. In addition, the Company holds a 28.57% working interest in one producing Viking natural gas well Persist Oil Entice 100/10-14-022-25W4/00 operated by Persist Oil & Gas Inc.
Average daily production net to Prospect from Namaka for the nine months ended September 30, 2024 was approximately 39 boe/d, consisting of 232 Mcf/d of natural gas.
Operating income net to Prospect from Namaka for the nine months ended September 30, 2024 was approximately ($22,000) per month, or ($264,000) on an annualized basis.
The Company had recognized good shut-in pressure in the Ellerslie Formation (1,200 PSI). There is also potential for drilling up to 6 wells in the Ellerslie Formation and infill drilling in the Belly River Formation.
The Company had identified upside potential to perforate certain wells in the Belly River Formation to increase production at Namaka. The wells Prospect Strath 00/11-17-022-24W4/0 and Prospect Strath 00/13-20-022-23W4/0 have shown traces of 32° API oil.
Namaka, Alberta
Gross Production Group Plot
Namaka Facilities
Prospect has ownership in a natural gas gathering system and a natural gas compressor at 01-09-023-24W4. The Company also has a natural gas sales line at 15-32-022-24W4 and a meter station SCADA unit at 14-29-022-24W4.
Further details on the Company’s facilities are available in the virtual data room for parties that sign a confidentiality agreement.
Namaka Reserves
The Company does not have a third-party reserve report.
Namaka Liability Assessment
As of March 25, 2025, the Namaka property had a deemed liability value of $1.5 million.
Namaka Seismic
The Company has seismic data relating to the Namaka property. Information relating to the seismic will be made available to parties that execute a confidentiality agreement.
Namaka Well List
Click here to download the complete well list in Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday May 15, 2025.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
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 cash offers from interested parties until
noon on Thursday May 15, 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 Properties 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, 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, deemed liability information and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Properties please contact Ben Rye, Tom Pavic or Sydney Birkett at 403.266.6133.