Offering Details
Back
Current Offerings / Knowledge Energy Inc.
Knowledge Energy Inc.
Corporate DivestitureBid Deadline: June 4, 2026
12:00 PM
Download Full PDF - Printable
OVERVIEW
Knowledge Energy Inc. (“Knowledge” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of the shares of the Company.Knowledge is a highly focused junior oil and natural gas company producing light oil and solution natural gas from its non-operated Charlie Lake play in the Balsam area of Alberta (the “Property”).
In the Balsam area, Knowledge holds primarily a 9% non-operated working interest in approximately 86 largely contiguous sections of land. The Property is operated primarily by Bonterra Energy Corp.
The Property has proven, low-risk middle Charlie Lake development, presenting an opportunity to drill up to 31 wells and additional upside in the upper Charlie Lake and from a potential gas flood. This is supported by extensive geological studies of the Property.
Current average daily production (April 2026) net to the Company is approximately 413 boe/d consisting of 156 bbl/d of oil and natural gas liquids and 1.5 MMcf/d of natural gas, with the latest wells coming on production in February and March 2026.
Forecasted annualized operating income net to Knowledge on a proved developed producing basis for the year ended December 31, 2026 is approximately $2.5 million.
As at December 31, 2025, Knowledge had no bank debt, positive working capital and as at April 1, 2026, total tax pools of approximately $8.9 million. There are no office lease or severance obligations associated with the Company.
The Company invested substantial capital in the initial infrastructure at Balsam, which will serve for the future development of the play. The Company has access to multiple third-party natural gas processing facilities which provides ample egress for all production.
Knowledge’s Licensee Capability Assessment as of March 31, 2026, had a current estimated magnitude of liability of $218,457 with low risk for financial distress and liability magnitude.
Additional corporate information relating to Knowledge will be provided to parties that execute a confidentiality agreement.
Overview Map Showing the Location of Knowledge’s Property
Corporate Overview
Knowledge is a tightly-held private company incorporated in 2006 with 2 shareholders.
Knowledge’s activities are managed by Sproule Asset Management Limited under a management agreement.
As at December 31, 2025, Knowledge had no bank debt, positive working capital and as at April 1, 2026, total tax pools of approximately $8.9 million. There are no office lease or severance obligations associated with the Company.
Additional corporate information relating to Knowledge will be provided to parties that execute a confidentiality agreement.
BALSAM
Township 81-84, Range 6-12 W6In the Balsam area, Knowledge primarily holds a 9% non-operated working interest in approximately 86 largely contiguous sections of land. The majority of the Property is operated by Bonterra.
Bonterra has recently drilled and completed joint venture wells on the Property at 100/12-20-082-11W6/00, 100/13-20-082-11W6/00 and 100/12-30-082-11W6/00, all of which recently came on production between February 14, 2026, and March 25, 2026. Bonterra has also licensed a well at 100/12-17-082-11W6/00 which is anticipated to be drilled in July/August 2026.
Current average daily production (April 2026) net to the Company is approximately 413 boe/d consisting of 156 bbl/d of oil and natural gas liquids and 1.5 MMcf/d of natural gas, with the latest wells coming on production between February and March 2026.
Forecasted annualized operating income net to Knowledge on a proved developed producing basis for the year ended December 31, 2026 is approximately $2.5 million.
At Balsam, the Company has identified a development plan which includes 33 horizontal drilling locations with 5 locations drilled per year starting in 2027. In addition, Knowledge has identified significant upside through the implementation of a gas flood.
Balsam, AB - Gross Production Group Plot of Knowledge’s Oil and Natural Gas Wells
The following production chart illustrates when production has been added at Balsam since July 2024.
At Balsam, Bonterra has recently drilled and completed joint venture wells Bonterra Hz Bonanza 100/12-20-082-11W6/00, Bonterra Hz Bonanza 100/13-20-082-11W6/00, and Bonterra Hz Bonanza 100/12-30-082-11W6/00, all of which recently came on production between February 14, 2026, and March 25, 2026. Bonterra has also licensed a well at Bonterra Hz Bonanza 100/12-17-082-11W6/00 which is anticipated to be drilled in July/August 2026.
Further details on the production will be made available in the virtual data room for parties that execute a confidentiality agreement.
Balsam Upside
The primary targets for oil and natural gas production at Balsam are several zones within the Middle Charlie Lake Formation as shown on the following well logs.
The Triassic-aged, regionally extensive Middle Charlie Lake is a hydrocarbon charged reservoir which encompasses high-growth, 38 – 40°API light, sweet oil and liquids-rich natural gas. The lithology is interbedded dolomite, anhydrite and dolomitic sand/silt/mudstones. Balsam is in a low water saturation area near a subcrop/erosional edge. The oil window is believed to be charged with oil from both the Nordegg and Doig phosphates.
Daylight Bonanza 100/13-17-082-11W6/0 – Middle Charlie Lake Type Log
The Balsam area has been evaluated with extensive geologic mapping and core calibrations. The regional geology is well understood and Balsam is analogous to other producing areas.
Due to the dolomitic and anhydritic mineralogy, raster log interpretations can be challenging which led Knowledge to more accurate and reliable petrophysical modelling. There is detailed petrophysical analysis on over 500 wells in the Balsam/Progress areas. The Company has done a study of over 50 cores and has special core analysis data.
Hydrogeology (pressure distribution) and source rock analysis indicate significant oil charge potential (in oil window), and a large regional trap.
Compared to the Upper Charlie Lake play, the Middle Charlie Lake has a lower water cut: 40-60% vs 60-90% and has similar average initial production IP90 rates of approximately 300 boe/d and similar average estimated ultimate recoveries of over 320 Mboe of oil.
The following cross-section shows the Middle Charlie Lake across the Company’s lands at Balsam.
Balsam NW-SE Stratigraphic Cross-Section A-A'
The following map shows the Lower Braeburn A isopach of the Middle Charlie Lake and potential horizontal development drilling locations across the Company’s lands at Balsam.
Lower Braeburn A Isopach – Knowledge Development Plan
The Company also believes the Property may be prospective for Upper Charlie Lake development potential. The Upper Charlie Lake is a large widespread resource play to the east of Balsam with production from over 400 horizontal oil wells.
Balsam Marketing
Clean oil is trucked from both batteries to sales at various terminals dependant on terminal wait times and road conditions.
North Battery - 01-30-083-11W6:
- R360 Spirit River 12-31-077-05 W6M Terminal
- R360 Gordondale 09-10-079-10 W6M Terminal (Summer only)
- Birchcliff 02-06-079-11W6 Terminal
- R360 Spirit River 12-31-077-05 W6M Terminal
- R360 Gordondale 09-10-079-10 W6M Terminal
North Battery - 01-30-083-11W6:
- Boundary Lake 01-14-085-13W6 Gas Plant
- CNRL Cecil North 16-4-85-8W6 Gas Plant (Future North Gas Processing Option)
- Terminal CNRL Cecil 08-15-084-08W6 Gas Plant
- Northriver Midstream 16-11-082-09W6 Gas Plant
Contango Commodity Marketing Inc. is engaged to oversee all marketing activities. Tidal Energy Marketing Inc. Nat. Gas Division is the purchaser of the natural gas production and Trafigura Canada Limited is the purchaser of the oil volumes. Natural gas liquids are marketed and disposed of by Bonterra (as operator) and revenue provided on JIB statements.
Balsam Facilities
The Company invested substantial capital in the critical initial infrastructure at Balsam. Knowledge has a 9% working interest in a 350 m3/d crude oil multi-well battery and 600 m3/d of water disposal at the South 13-15-082-11W6 battery, including field compression of 550 e3m3/day.
The Company also has a 9% working interest in a 300 m3/d crude oil multi-well battery and 1,000 m3/d of water disposal at the North 01-30-083-11W6 battery, including field compression of 400 e3m3/day.
The Company has access to multiple third-party natural gas processing facilities which provides ample egress for all production.
At Balsam, the Company holds working interests in the following facilities.
Balsam Reserves
Sproule ERCE (“Sproule”) prepared an independent reserves evaluation of the Property (the “Sproule Report”). The Sproule Report is effective March 31, 2026 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd., and Sproule’s forecast pricing as at April 1, 2026.
Sproule estimated that, as at March 31, 2026, the Balsam property contained remaining proved plus probable reserves of 459,000 barrels of oil and natural gas liquids and 3.2 Bcf of natural gas (991,000 boe), with an estimated net present value of $10.3 million using forecast pricing at a 10% discount.
Balsam Liability Assessment
The Company has operatorship in 4 abandoned wells at Balsam. Knowledge does not operate any facilities at Balsam.
Knowledge’s Licensee Capability Assessment as of March 31, 2026, had a current estimated magnitude of liability of $218,457 with low risk for financial distress and liability magnitude.
The Company has a security deposit in place with the Alberta Energy Regulator of $28,984.
Balsam Well List
Click here to download the complete well list on Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting proposals relating to this process until 12:00 pm on Thursday, June 4, 2026.
Sayer Energy Advisors does not typically conduct a "second-round" bidding process; the intention is to attempt to conclude a
transaction with the party submitting the most acceptable proposal(s) at the conclusion of the process.
transaction with the party submitting the most acceptable proposal(s) at the conclusion of the process.
Sayer Energy Advisors is accepting proposals from interested parties until
noon on Thursday, June 4, 2026.
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, email (brye@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: most recent net lease operating statements, summary land information, Licensee Capability Assessment and other relevant corporate and technical information.
Download Confidentiality Agreement
To receive further information on the Company please contact Ben Rye, Tom Pavic or Sydney Birkett at 403.266.6133.