Close
Save

Offering Details


Back

Under Review   /   MKS Investments Ltd.



MKS Investments Ltd.

Property Divestiture
Bid Deadline: December 9, 2021 12:00 PM
Download Full PDF - Printable


OVERVIEW

MKS Investments Ltd.  (“MKS” or the “Company”) has engaged  Sayer Energy Advisors to assist the Company with the sale of its oil and natural gas interests located in Alberta (the “Properties”).

The Properties consist of 100% working interests in five-year Crown mineral rights leases with prospective drilling locations for oil and natural gas primarily in the Cardium, Duvernay, Mannville, Montney, Slave Point and Viking formations.  There is no production from the Properties.  MKS believes there is potential to drill vertical and horizontal wells on its lands.  The Properties were acquired by MKS at different times and the remaining term varies for each lease.  Further details on the leases are available in the virtual data room for parties that execute a confidentiality agreement.

The Company has a 100% working interest in 10.75 sections of land at Long Coulee which are prospective for oil and natural gas from the Upper Mannville Group.

At Mikwan, MKS holds 100% working interest in seven sections of land which are prospective for oil from the Duvernay Formation.

MKS has a 100% working interest in eight sections of land at Halkirk which are prospective for oil from the Viking Formation.

At Golden Spike, the Company holds 100% working interest in 11 sections of land which are prospective for oil from the Duvernay Formation.

The Company holds 100% working interest in seven sections of land at Pine Creek which are prospective for oil from the Cardium Formation.

At Presley, the Company holds 100% working interest in 10 sections of land which are prospective for liquid-rich natural gas from the Montney and Duvernay formations.

MKS has a 100% working interest in five sections of land at Shadow which are prospective for oil from the Montney Formation.

At Golden, the Company has a 100% working interest in approximately 3.5 sections of land which are prospective for oil from the Slave Point and Gilwood formations.
 

Overview Map Showing the Location of the Divestiture Properties


LMR Summary

MKS does not own an interest in any wells or facilities.

Seismic Overview

The Company does not have ownership in any seismic data.

Reserves Overview

MKS does not have a third-party reserve report.

LONG COULEE

Township 16, Range 19-20 W4

MKS has a 100% working interest in 10.75 sections of land at Long Coulee which are prospective for oil and natural gas from the Glauconitic Sandstone Formation and the Mannville A and Mannville B channels of the Upper Mannville Group.  The Company does not have any production from the Long Coulee property.
 


The Company acquired Crown lands at Long Coulee which are located in the middle of Upper Mannville and Glauconitic Channel production areas as shown on the following map.  There is significant production from vertical wells in surrounding fields and potential to increase productivity by drilling horizontal wells.
 

The well logs below from the well Wilcox Armada 00/06-29-016-19W4/0 show the Glauconitic Sandstone Formation on the Company’s lands at Long Coulee.

The Glauconitic Sandstone Formation and Mannville A and B pools at Long Coulee are found at depths of between approximately 1,000 and 1,200 metres and each consist of up to 10 metres of net pay.

 

Wilcox Armada 00/06-29-016-19W4/0
Glauconitic Sandstone Formation Log


MKS has identified up to 10 drilling locations in the Upper Mannville on its lands at Long Coulee.
 


The Company believes the Mannville wells at Long Coulee will have an estimated initial production rate of 130 boe/d and ultimate recovery of 196,000 boe per well.

MIKWAN

Township 36-37, Range 22-23 W4

At Mikwan, the Company holds 100% working interest in 10 sections of land which are prospective for oil from the Duvernay Formation.  The Company has also identified potential for drilling in the Mannville Group.  The Company does not have any production from the Mikwan property.
 


The Duvernay Formation at Mikwan is an upper Devonian marine shale reservoir.  The Duvernay is found at a depth of approximately 2,000 metres and consists of approximately 10-15 metres of net pay using a 6% porosity cut-off.

MKS believes there is potential for up to 40 horizontal drilling locations in the Duvernay Formation on its lands at Mikwan, as well as potential locations in the Mannville Group on Sections 10 and 22-036-23W4.

HALKIRK

Township 40-42, Range 13-14 W4

MKS has a 100% working interest in eight sections of land at Halkirk, which are prospective for oil from the Viking Formation.  The Company does not have any production from the Halkirk property.

The Company’s lands at Halkirk are immediately north of the main Provost Viking pool which is being developed by Karve Energy Inc.

 


The Viking Formation at Halkirk is a sandstone reservoir of the Cretaceous Colorado Group.  The Viking is found at a depth of approximately 800 metres and consists of a maximum net pay of eight metres using a 12% porosity cut-off.

PEOC Killam 00/04-33-041-13W4/0
Viking Formation Log


MKS has identified up to 28 horizontal drilling locations from the Viking Formation on its lands at Halkirk.
 


There is offsetting Viking oil production in the area from several operators including Cardinal Energy Ltd., Deltawest Energy Ltd. and Karve.

The Company believes the Viking wells at Halkirk have estimated ultimate recovery of 90,000 boe per well with a net present value of approximately $1.74 million using $50/bbl WTI pricing at 10% discount.

MKS believes there is upside potential for a waterflood in the Viking at Halkirk which would increase the recovery factor from 5% to 15%.

GOLDEN SPIKE

Township 51-52, Range 27 W4

At Golden Spike, the Company holds a 100% working interest in 11 sections of land which are prospective for oil from the Duvernay Formation.  The Company does not have any production from the Golden Spike property.

 


The Duvernay Formation at Golden Spike is an upper Devonian limestone reservoir found at a depth of approximately 2,200 to 2,400 metres and consists of net pay of 20-25 metres using a 3% limestone porosity cut-off.

The following well log shows the Duvernay Formation offsetting MKS’ lands at Golden Spike.

 

Dart Et Al Stony Plain 00/03-12-052-01W5/0
Duvernay Formation Log


MKS has identified up to 40 horizontal drilling locations on its lands at Golden Spike as shown on the following map.
 

PINE CREEK

Township 55-56, Range 19 W5

At Pine Creek, the Company holds 100% working interest in seven sections of land which are prospective for oil from the Cardium Formation.  The Company does not have any production from the Pine Creek property.

 


 

The Cardium Formation at Pine Creek is a regional shoreface sandstone reservoir with a stratigraphic trap.  The Cardium A zone is found at a depth of approximately 2,000 metres and consists of net pay of up to five metres using a 6% porosity cut-off.


The following well log shows the Cardium A zone on MKS’ lands at Pine Creek.
 

SOC Pine Ck 02/09-09-056-19W5/0
Cardium Formation Log

 

MKS has identified up to 20 horizontal drilling locations from the Cardium A on its lands at Pine Creek as shown on the following map.
 


 

The Company believes the Cardium wells at Pine Creek have estimated ultimate recovery of 156,000 boe per well.

PRESLEY

Township 56-57, Range 20 W5

At Presley, the Company holds a 100% working interest in 10 sections of land which are prospective for liquids-rich natural gas from the Montney and Duvernay formations.  The Company does not have any production from the Presley property.

 


The Montney Formation at Presley is a middle Triassic dolostone and coquina reservoir found at a depth of approximately 2,700 metres and consists of net pay of up to five metres using a 6% porosity cut-off.

The following well log shows the Montney Formation offsetting MKS’ lands at Presley.

 

ACL Pine Ck 00/11-14-057-20W5/0
Montney Formation Log


MKS has identified up to 28 horizontal drilling locations in the Montney Formation on its lands at Presley as shown on the following map.
 


The Company believes the Montney wells at Presley have estimated ultimate recovery of 545,000 boe per well.  MKS also believes there is upside potential for drilling in the nine sections of Duvernay rights at Presley.

SHADOW

Township 74, Range 19-20 W5

At Shadow, MKS has a 100% working interest in five sections of land, which are prospective for oil from the Montney Formation.  The Company does not have any production from the Shadow property.

The Company’s lands at Shadow are immediately south of Long Run Exploration Ltd.’s Montney oil development at Girouxville.

 


The Montney Formation at Shadow is a middle Triassic sandstone/siltstone reservoir found at a depth of approximately 1,050 metres and consists of a maximum net pay of 10 metres using a 9% porosity cut-off.

The following well log shows the Montney Formation offsetting MKS’ lands at Shadow.

 

Mercury Undefine 00/16-026-074-20W5/0
Montney Formation Log


There is offsetting light oil production in the area from Long Run.
 
MKS has identified 20 horizontal drilling locations on its lands at Shadow as shown on the following map.

 


The Company believes the Montney wells at Shadow have estimated ultimate recovery of 138,000 boe per well.

GOLDEN

Township 86-87, Range 14 W5

At Golden, MKS has a 100% working interest in approximately 3.75 sections of land, which are prospective for oil from the Slave Point and Gilwood formations.  The Company does not have any production from the Golden property.


The Company’s lands at Golden are east of Spoke Resources Ltd.’s Slave Point oil pool.
 


The Slave Point Formation at Golden is a partially dolomitized carbonate reservoir immediately overlying the granites of the Precambrian and is found at a depth of approximately 1,620 metres.  The Golden Slave Point ‘A’ Pool consists of a maximum net pay of 12 metres using a 12% porosity cut-off.
 
There is offsetting Slave Point oil production in the area from Spoke.
 
MKS has identified eight horizontal drilling locations on its lands at Golden.  The following map shows the Company’s Slave Point drilling locations on its lands at Golden.

 


MKS also believes there is upside potential for drilling in the Gilwood Formation at Golden.

PROCESS & TIMELINE

Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday December 9, 2021.
 

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.

Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday December 9, 2021.


NOTE REGARDING A SAYER PROCESS

On each and every offering brochure generated by Sayer, you will note the sentence “Sayer Energy Advisors does not conduct a “second-round” bidding process; the intention is to attempt to conclude a sale of the Property with the party submitting the most acceptable proposal at the conclusion of the process.”  What this means is that Sayer will not go back to multiple parties at the same time after bids are received, asking them all for a second bid.  We determine which party submitted the most acceptable proposal and then we attempt to negotiate acceptable terms with that party in a “one-off” situation.

If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted.  If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer.  If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.

In the extremely rare circumstance where two or more parties submit virtually identical proposals, we will contact all  parties, we will advise them of this situation and we will ask them to submit a revised proposal.  Once these are received, we will work with the party which has submitted the most acceptable proposal.

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: mineral property reports, geological presentations and other relevant technical information.
 
Download Confidentiality Agreement
 
To receive further information on the Properties please contact Ben Rye, Tom Pavic or Grazina Palmer at 403.266.6133.
Top