Offering Details
Back
Current Offerings / Fallon Energy Inc.
Fallon Energy Inc.
Property DivestitureBid Deadline: December 11, 2025
12:00 PM
Download Full PDF - Printable
OVERVIEW
Fallon Energy Inc. (“Fallon” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of its oil and natural gas interests located in the Greater Lloydminster areas of Saskatchewan (the “Properties”).
Fallon operates all of the Properties, generally holding a 100% working interest including associated facilities. The Properties are generally located near Lloydminster, Saskatchewan in the Battle River, Big Gully, Forest Bank, Furness, Lashburn, Lone Rock, Maidstone, Marshall, Neilburg, Tangleflags and Unwin areas.
Fallon has recently optimized, reactivated and recompleted several wells on the Properties which resulted in increased production rates. The Company is in the process of optimizing several additional wells.
The Company has a total of 170 wells including 2 water disposal wells and a third water disposal well to be completed in the fourth quarter of 2025. Following an extensive well review, only 6 wells have been determined to require abandonment with the remaining wells to be reactivated or recompleted.
The Company also converted one well to water injection, with one more conversion in progress. The conversions are expected to significantly reduce the expenses and trucking costs associated with the Properties.
Current production net to Fallon is estimated to be approximately 500 bbl/d of heavy oil. Total sales production net to Fallon from the Properties for July-August 2025 averaged approximately 355 bbl/d of heavy oil (355 boe/d).
The Company anticipates net operating income for 2026 to be approximately $5.3 million. Net operating income from the Properties averaged approximately $78,000 per month for July-August 2025, or $936,000 on an annualized basis.
Fallon successfully completed an oil/water conversion in an existing oil well at Unwin. After setup and commissioning of the water disposal well, it is currently on vacuum and disposing of approximately 400 m3 of water per day. This conversion has significantly reduced the operating expenses and trucking costs associated with the Properties. Fallon estimates that the netback will improve by $9/bbl, saving approximately $85,000 per month.
A second water disposal well is expected to be brought on by December 2025 in the Lone Rock area, which is estimated to improve the netback by $20/bbl at Marshall which would result in savings of approximately $100,000 per month in trucking and associated expenses.
As of October 21, 2025, the Properties had a positive deemed net asset value of $4.2 million (deemed assets of $10.9 million less deemed liabilities of $6.7 million), with an LMR ratio of 1.62.
Fallon operates all of the Properties, generally holding a 100% working interest including associated facilities. The Properties are generally located near Lloydminster, Saskatchewan in the Battle River, Big Gully, Forest Bank, Furness, Lashburn, Lone Rock, Maidstone, Marshall, Neilburg, Tangleflags and Unwin areas.
Fallon has recently optimized, reactivated and recompleted several wells on the Properties which resulted in increased production rates. The Company is in the process of optimizing several additional wells.
The Company has a total of 170 wells including 2 water disposal wells and a third water disposal well to be completed in the fourth quarter of 2025. Following an extensive well review, only 6 wells have been determined to require abandonment with the remaining wells to be reactivated or recompleted.
The Company also converted one well to water injection, with one more conversion in progress. The conversions are expected to significantly reduce the expenses and trucking costs associated with the Properties.
Current production net to Fallon is estimated to be approximately 500 bbl/d of heavy oil. Total sales production net to Fallon from the Properties for July-August 2025 averaged approximately 355 bbl/d of heavy oil (355 boe/d).
The Company anticipates net operating income for 2026 to be approximately $5.3 million. Net operating income from the Properties averaged approximately $78,000 per month for July-August 2025, or $936,000 on an annualized basis.
Fallon successfully completed an oil/water conversion in an existing oil well at Unwin. After setup and commissioning of the water disposal well, it is currently on vacuum and disposing of approximately 400 m3 of water per day. This conversion has significantly reduced the operating expenses and trucking costs associated with the Properties. Fallon estimates that the netback will improve by $9/bbl, saving approximately $85,000 per month.
A second water disposal well is expected to be brought on by December 2025 in the Lone Rock area, which is estimated to improve the netback by $20/bbl at Marshall which would result in savings of approximately $100,000 per month in trucking and associated expenses.
As of October 21, 2025, the Properties had a positive deemed net asset value of $4.2 million (deemed assets of $10.9 million less deemed liabilities of $6.7 million), with an LMR ratio of 1.62.
Overview Map Showing Location of the Divestiture Properties
GREATER LLOYDMINSTER
Township 45-50, Range 22-27 W3
Fallon operates all of the Properties, generally holding a 100% working interest including associated facilities. The Properties are generally located near Lloydminster, Saskatchewan in the Battle River, Big Gully, Forest Bank, Furness, Lashburn, Lone Rock, Maidstone, Marshall, Neilburg, Tangleflags and Unwin areas.
Fallon operates all of the Properties, generally holding a 100% working interest including associated facilities. The Properties are generally located near Lloydminster, Saskatchewan in the Battle River, Big Gully, Forest Bank, Furness, Lashburn, Lone Rock, Maidstone, Marshall, Neilburg, Tangleflags and Unwin areas.
Production, Reserves & NOI Overview
Current production net to Fallon is estimated to be approximately 500 bbl/d of heavy oil. Total sales production net to Fallon from the Properties for July-August 2025 averaged approximately 355 bbl/d of heavy oil (355 boe/d). With the additional planned workovers, the Company anticipates production to increase to over 700 boe/d.
Fallon has recently optimized several wells on the Properties which resulted in increased production rates. The Company is in the process of optimizing several additional wells.
The Company also converted one well to water injection, with one more conversion in progress. The conversions are expected to significantly reduce the expenses and trucking costs associated with the Properties.
The Company anticipates net operating income for 2026 to be approximately $5.3 million. Net operating income from the Properties averaged approximately $78,000 per month for July-August 2025, or $936,000 on an annualized basis.
Fallon successfully completed an oil/water conversion in an existing oil well at Unwin. After setup and commissioning of the water disposal well, it is currently on vacuum and disposing of approximately 400 m3 of water per day. This conversion has significantly reduced the operating expenses and trucking costs associated with the Properties. Fallon estimates that the netback will improve by $9/bbl, saving approximately $85,000 per month.
Current production net to Fallon is estimated to be approximately 500 bbl/d of heavy oil. Total sales production net to Fallon from the Properties for July-August 2025 averaged approximately 355 bbl/d of heavy oil (355 boe/d). With the additional planned workovers, the Company anticipates production to increase to over 700 boe/d.
Fallon has recently optimized several wells on the Properties which resulted in increased production rates. The Company is in the process of optimizing several additional wells.
The Company also converted one well to water injection, with one more conversion in progress. The conversions are expected to significantly reduce the expenses and trucking costs associated with the Properties.
The Company anticipates net operating income for 2026 to be approximately $5.3 million. Net operating income from the Properties averaged approximately $78,000 per month for July-August 2025, or $936,000 on an annualized basis.
Fallon successfully completed an oil/water conversion in an existing oil well at Unwin. After setup and commissioning of the water disposal well, it is currently on vacuum and disposing of approximately 400 m3 of water per day. This conversion has significantly reduced the operating expenses and trucking costs associated with the Properties. Fallon estimates that the netback will improve by $9/bbl, saving approximately $85,000 per month.
Liability Assessment as of October 21, 2025
As of October 21, 2025, the Properties had a positive deemed net asset value of $4.2 million (deemed assets of $10.9 million less deemed liabilities of $6.7 million), with an LMR ratio of 1.62.
As of October 21, 2025, the Properties had a positive deemed net asset value of $4.2 million (deemed assets of $10.9 million less deemed liabilities of $6.7 million), with an LMR ratio of 1.62.
Marketing Overview
Fallon has a 30-day evergreen crude oil purchase contract in place with Broadbill Energy Inc. for delivery to Broadbill BBE 13-23-040-08W4 trucked from 01-08-048-26W3.
The Company also has a crude oil purchase agreement in place with Altex Energy Ltd. for delivery to the Altex Transload Rail Terminal at Lashburn.
Seismic Overview
Fallon does not have ownership in any seismic relating to the Properties.
Reserves Overview
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Properties (the “GLJ Report”). The GLJ Report is effective February 28, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule ERCE’s January 1, 2023 forecast pricing.
GLJ estimates that, as at February 28, 2023, the Properties contained remaining proved plus probable reserves of 5.6 million barrels of heavy oil (5.6 million boe), with an estimated net present value of $92.9 million using forecast pricing at a 10% discount.
Fallon has a 30-day evergreen crude oil purchase contract in place with Broadbill Energy Inc. for delivery to Broadbill BBE 13-23-040-08W4 trucked from 01-08-048-26W3.
The Company also has a crude oil purchase agreement in place with Altex Energy Ltd. for delivery to the Altex Transload Rail Terminal at Lashburn.
Seismic Overview
Fallon does not have ownership in any seismic relating to the Properties.
Reserves Overview
GLJ Ltd. (“GLJ”) prepared an independent reserves evaluation of the Properties (the “GLJ Report”). The GLJ Report is effective February 28, 2023 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule ERCE’s January 1, 2023 forecast pricing.
GLJ estimates that, as at February 28, 2023, the Properties contained remaining proved plus probable reserves of 5.6 million barrels of heavy oil (5.6 million boe), with an estimated net present value of $92.9 million using forecast pricing at a 10% discount.
Operations Overview
The Company has identified several workovers on the Properties to bring a total of approximately 428 bbl/d of oil on production. Fallon is planning to complete the workovers in the fourth quarter of 2025.
Fallon is executing a total capital program of $2.0 million over the course of 2025. The following table shows the remaining operations planned in the fourth quarter.
Further details of the capital program will be available in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified several workovers on the Properties to bring a total of approximately 428 bbl/d of oil on production. Fallon is planning to complete the workovers in the fourth quarter of 2025.
Fallon is executing a total capital program of $2.0 million over the course of 2025. The following table shows the remaining operations planned in the fourth quarter.
Further details of the capital program will be available in the virtual data room for parties that execute a confidentiality agreement.
Lloydminster Recompletion & Workovers
The Company reactivated water injection wells which will reduce the operating expenses associated with the Properties.
In addition to the planned operational activities, the Company has completed a review of its wells on the Properties and identified the additional upside described as follows.
Lone Rock Workovers
At Lone Rock, the Company has identified Sparky and GP upside in the 111/07-19-047-26W3/0 well.
Marshall Workovers
At Marshall, the Company has identified Lloydminster upside potential in the 111/01-08-048-26W3/0 well and also the opportunity to perforate in the Lloydminster and commingle with current Sparky production in the 191/09-08-048-26W3/2, 131/10-08-048-26W3/0, 191/11-08-048-26W3/0 and 191/12-08-048-26W3/0 wells. There is also potential for a horizontal Sparky well in the N 1/2 of Section 08-048-26W3.
Unwin Workovers
At Unwin, the Company has identified potential to add the following perforations to increase production:
The Company reactivated water injection wells which will reduce the operating expenses associated with the Properties.
In addition to the planned operational activities, the Company has completed a review of its wells on the Properties and identified the additional upside described as follows.
Lone Rock Workovers
At Lone Rock, the Company has identified Sparky and GP upside in the 111/07-19-047-26W3/0 well.
Marshall Workovers
At Marshall, the Company has identified Lloydminster upside potential in the 111/01-08-048-26W3/0 well and also the opportunity to perforate in the Lloydminster and commingle with current Sparky production in the 191/09-08-048-26W3/2, 131/10-08-048-26W3/0, 191/11-08-048-26W3/0 and 191/12-08-048-26W3/0 wells. There is also potential for a horizontal Sparky well in the N 1/2 of Section 08-048-26W3.
Unwin Workovers
At Unwin, the Company has identified potential to add the following perforations to increase production:
- 191/15-21-045-27W3/0 - Add middle Sparky Perfs.
- 111/16-21-045-27W3/0 - 0.5 metres of GP, Lloydminster Potential.
- 101/06-21-045-27W3/2 - Perf upper GP. Perf Lloydminster.
Neilburg Workovers
At Neilburg, the Company has identified reactivations in the following wells:
At Neilburg, the Company has identified reactivations in the following wells:
- 111/08-10-046-26W3/0 - 50 bbl/d of McLaren oil to reactivate. Resistivity is good. Structurally high, good well.
- 111/10-10-046-26W3/3 – Reactivate Colony, expected to come on at 15-17 bbl/d.
- 111/12-11-46-26W3/0 Reactivate McLaren and test Sparky.
The Company has identified additional recompletions in the following wells:
- 112/03-11-046-26W3/0 - Add Sparky.
- 111/04-11-046-26W3/0 - Mannville natural gas over oil target.
- 191/11-11-046-26W3/0 - Review Rex potential.
- 111/02-11-046-26W3/0 - Sparky potential, Colony gas.
- 121/06-11-046-26W3/0 - Sparky potential.
- 112/12-10-046-26W3/0 - Add Colony perfs at 583.3-582.8 mKB.
- 111/12-10-046-26W3- Patch Colony, Re-enter McLaren.
In addition, the Company has identified potential for disposal in the Lloydminster Formation in the 101/05-10-046-26W3 well.
Lashburn Workovers
At Lashburn, the Company has identified recompletion potential in the Sparky in the following wells:
At Lashburn, the Company has identified recompletion potential in the Sparky in the following wells:
- 111/05-35-048-25W3 Mannville Gas potential. Currently Perfed in Sparky. Sparky add perfs 569.5-570.0 mKB.
- 111/12-35-048-25W3. Coil pump. 8 bbl/d. Site fully setup. Potential to add perfs.
- 101/13-35-048-25W3. Currently producing from Sparky. Potential to add perfs in Sparky zone and test Colony at 515.0-151.5 mKB.
Additional Workovers
In addition, the Company has identified the potential to dramatically increase production through over 100 potential workovers including reactivations, bypassed pay zones and recompletion candidates throughout the Properties.
A full list of shut-in wells with reactivation opportunities and further details of the upside will be available in the virtual data room for parties that execute a confidentiality agreement.
Lloydminster Facilities
At Lloydminster, the Company owns water injection facilities at 04-04-049-25W3 and 08-28-045-27W3.
Further details of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Lloydminster Well List
Click here to download the complete well list in Excel.
In addition, the Company has identified the potential to dramatically increase production through over 100 potential workovers including reactivations, bypassed pay zones and recompletion candidates throughout the Properties.
A full list of shut-in wells with reactivation opportunities and further details of the upside will be available in the virtual data room for parties that execute a confidentiality agreement.
Lloydminster Facilities
At Lloydminster, the Company owns water injection facilities at 04-04-049-25W3 and 08-28-045-27W3.
Further details of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Lloydminster 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 December 11, 2025.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude
transactions with the parties submitting the most acceptable proposals at the conclusion of the process.
transactions with the parties submitting the most acceptable proposals at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday December 11, 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 technical information relating to this opportunity should execute the Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, email (brye@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: summary land information, the GLJ Report, deemed liability information, most recent net operations summary, detailed facilities 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.