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Under Review   /   Saskatoon Leaseholds Limited



Saskatoon Leaseholds Limited

Corporate Divestiture
Bid Deadline: November 3, 2022
12:00 PM
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OVERVIEW

The Estate of JC Snyder (the “Estate”) has engaged Sayer Energy Advisors to assist it with the sale of the shares of Saskatoon Leaseholds Limited (“Saskatoon Leaseholds” or the “Company”). The Company’s assets consist primarily of Fee Title interests (“Fee Title”), Gross Overriding Royalty (“GORR”) interests, as well as Gross Royalty Trust Certificates (“GRTCs”) in a number of areas of Alberta, Saskatchewan, Manitoba as well as Montana, USA and minor non-operated working interests in Alberta and Saskatchewan (the “Properties”). 
 
The Properties include 57,020 gross acres of undeveloped Fee Title land, GORR interests and GRTCs. In addition, the Company also holds 3,100 acres of Crown land and minor non-operated working interests in nine wells located in Alberta and Saskatchewan.
 
As at June 30, 2022, Saskatoon Leaseholds had no bank debt, and $5.0 million in cash and positive working capital.
 
The Company has an office lease which terminates March 31, 2023. Rent is approximately $3,600 per month. Other than the office lease there are no other liabilities associated with the Company.
 
The proceeds from the sale of the shares of the Company will be donated by the Estate to the University of Calgary.

 

Overview Map Showing Location of Saskatoon Leaseholds' Properties

 

Royalty Income Overview

Royalty income net to Saskatoon Leaseholds for the six months ended June 30, 2022 was approximately $723,000, or $1.45 million on an annualized basis. The majority of the royalty income is from Saskatchewan with approximately $642,000 of the $723,000 total royalty income from Saskatoon Leaseholds’ interests in Saskatchewan.
 
Royalty production net to the Company for the six months ended June 30, 2022 averaged approximately 38 boe/d (31 barrels of oil per day and 42 Mcf/d of natural gas).
 
The Company receives royalty payments from AlphaBow Energy Ltd., Baytex Energy Corp., Burgess Creek Exploration Inc., Canadian Natural Resources Limited, Coastal Resources Limited, Crescent Point Energy Corp., Greenwater Resources Inc., Harvard Energy Partnership, Surge Energy Inc., Just Freehold Energy Corp., Lynx Energy ULC, Ovintiv Inc., Ridgeback Resources Inc., Saturn Oil & Gas Inc., Tamarack Valley Energy Ltd., TAQA North Ltd., Tundra Oil & Gas Ltd., Valleyview Petroleums Ltd., Vermilion Energy Inc., Villanova Energy Inc. and Whitecap Resources Inc.


Reserves Overview

The Company does not have a third-party reserve report.

LMR Overview

The Company does not operate any wells or facilities.

Corporate Well List

Click here to download the complete well list in Excel.


 

SASKATCHEWAN PROPERTIES

Saskatoon Leaseholds' Interests - Saskatchewan


Saskatoon Leaseholds' Interests - SE Saskatchewan


Saskatoon Leaseholds' Interests - SW Saskatchewan

 
The Company has an interest in approximately 24,700 acres of undeveloped Fee Title land and GRTCs in Saskatchewan.
 
Further details on the land ownership will be available for parties that execute a confidentiality agreement.
 
Royalty income net to Saskatoon Leaseholds for the six months ended June 30, 2022 from the Company’s interests in Saskatchewan was approximately $642,000, or $1.3 million on an annualized basis.
 
Royalty production net to the Company for the six months ended June 30, 2022 averaged approximately 30 boe/d (29 barrels of oil per day and two Mcf/d of natural gas) from the Saskatchewan properties.

 

The Company also has a 12.5% working interest in one suspended brine disposal well located at 121/13-10-007-04W2/00 and a 25% working interest in a suspended oil well at 101/07-09-007-04W2/00, both operated by Saturn.
 
A portion of the royalty interests held by the Estate are currently in probate pending transfer to the Company. It is the Estate’s intention to include these royalty interests as part of the sale of the Company. This includes approximately 1,040 acres of the Company’s 24,700 gross acres of undeveloped Fee Title land in Saskatchewan located in the Eston, Hanley, Quappelle, Regina and Souris River areas.

ALBERTA PROPERTIES

Saskatoon Leaseholds' Interests - Alberta

 
Saskatoon Leaseholds has an interest approximately in 15,120 acres of undeveloped Fee Title land and GRTCs in Alberta.
 
Royalty income net to Saskatoon Leaseholds for the six months ended June 30, 2022 from the Company’s interests in Alberta was approximately $54,000, or $108,000 on an annualized basis.
 
Royalty production net to the Company for the six months ended June 30, 2022 averaged approximately seven boe/d (0.4 barrels of oil per day and 40 Mcf/d of natural gas) from the Alberta properties.

 

The Company also holds minor non-operated working interests in nine wells located in Alberta. In addition to the royalty income, working interest income net to the Company was approximately $9,000 for the six months ended June 30, 2022.
 
The Company has a 6.25% working interest in six wells located in Township 030-21W4 which are operated by Pine Cliff Energy Ltd. Non-operated working interest production net to Saskatoon Leaseholds averaged approximately 12 Mcf/d of natural gas with minor volumes of associated natural gas liquids (two boe/d).
 
The Company also has 7.69% working interest in two abandoned wells operated by TAQA located in Section 18-021-25W4.
 
A portion of the royalty interests held by the Estate are currently in probate pending transfer to the Company. It is the Estate’s intention to include these royalty interests as part of the sale of the Company. This includes approximately 1,120 acres of the Company’s 15,120 gross acres of undeveloped Fee Title land in Alberta located in the Banff, Calgary and Springbank areas.
 
Further details on the land ownership will be available for parties that execute a confidentiality agreement.


 

MANITOBA PROPERTIES

Saskatoon Leaseholds Interests - Manitoba

 
The Company has an interest in approximately 16,160 acres of undeveloped Fee Title lands in Manitoba.
 
Royalty income net to Saskatoon Leaseholds for the six months ended June 30, 2022 from the Company’s interests in Manitoba was approximately $26,000, or $52,000 on an annualized basis.
 
Royalty production net to the Company for the six months ended June 30, 2022 averaged approximately one boe/d (one barrel of oil per day).

 

MONTANA PROPERTIES

Additionally, Saskatoon Leaseholds has royalty interests on 3,200 acres of land located in Montana, USA.

T
here is no production or revenue associated with the Company’s interests in Montana.

PROCESS & TIMELINE

Sayer Energy Advisors is accepting offers relating to this process until 12:00 pm on Thursday November 3, 2022. 


 
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 offers from interested parties until
noon on Thursday November 3, 2022.

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 (tpavic@sayeradvisors.com) or fax (403.266.4467).

Included in the confidential information is the following: most recent net royalty income statements, summary land information and other relevant corporate information.

Download Confidentiality Agreement

To receive further information on the Company please contact Tom Pavic, Ben Rye or Grazina Palmer at 403.266.6133.

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