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Under Review / Edge Capital Ltd.
Edge Capital Ltd.
Corporate DivestitureBid Deadline: November 10, 2022
12:00 PM
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OVERVIEW
Edge Capital Ltd. along with its wholly owned subsidiaries; Edge LRM Operations Ltd. and Edge Crypto Mining Inc. (collectively “Edge” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of the shares of the Company.
Edge is a debt free, junior oil and natural gas company with a focus on heavy oil operated assets in the Lloydminster area of Alberta and Saskatchewan. Edge’s operated properties in Alberta are located in the Baxter Lake and Lloydminster areas. In Saskatchewan, the Company’s operations are focused in the Big Gully, Dee Valley, Edam, Epping, Forest Bank, Golden Lake, Lashburn, Rush Lake, Silverdale, Standard Hill, Tangleflags and Hillmond areas. The Company also has various non-operated interests throughout Alberta and British Columbia (the “Properties”).
Edge has made capital spending on abandonment and reclamation obligations (“ARO”) a key priority since inception in February of 2020. The Company has completed $1.2 million of ARO work since May 1, 2020.
Edge’s total deemed asset value between Alberta and Saskatchewan is a combined $7.5 million.
The Company’s average daily production in the second quarter of 2022 consisted of approximately 260 barrels of oil and natural gas liquids per day and 306 Mcf/d of natural gas (312 boe/d).
Operating income net to Edge from the Properties in the second quarter of 2022 was approximately $1.3 million, or $5.2 million on an annualized basis.
Through its subsidiary, Edge Crypto Mining Inc., Edge also has a crypto currency mining operation in the southwest quarter of Section 26-050-01W4.
As at August 31, 2022, Edge had no bank debt, estimated total positive working capital of $4.2 million, including $3.0 million in cash and total tax pools of approximately $6.3 million (with $5.1 million in non-capital losses). Additional corporate information relating to Edge will be provided to parties upon execution of a confidentiality agreement.
Edge is a debt free, junior oil and natural gas company with a focus on heavy oil operated assets in the Lloydminster area of Alberta and Saskatchewan. Edge’s operated properties in Alberta are located in the Baxter Lake and Lloydminster areas. In Saskatchewan, the Company’s operations are focused in the Big Gully, Dee Valley, Edam, Epping, Forest Bank, Golden Lake, Lashburn, Rush Lake, Silverdale, Standard Hill, Tangleflags and Hillmond areas. The Company also has various non-operated interests throughout Alberta and British Columbia (the “Properties”).
Edge has made capital spending on abandonment and reclamation obligations (“ARO”) a key priority since inception in February of 2020. The Company has completed $1.2 million of ARO work since May 1, 2020.
Edge’s total deemed asset value between Alberta and Saskatchewan is a combined $7.5 million.
The Company’s average daily production in the second quarter of 2022 consisted of approximately 260 barrels of oil and natural gas liquids per day and 306 Mcf/d of natural gas (312 boe/d).
Operating income net to Edge from the Properties in the second quarter of 2022 was approximately $1.3 million, or $5.2 million on an annualized basis.
Through its subsidiary, Edge Crypto Mining Inc., Edge also has a crypto currency mining operation in the southwest quarter of Section 26-050-01W4.
As at August 31, 2022, Edge had no bank debt, estimated total positive working capital of $4.2 million, including $3.0 million in cash and total tax pools of approximately $6.3 million (with $5.1 million in non-capital losses). Additional corporate information relating to Edge will be provided to parties upon execution of a confidentiality agreement.
Overview Map Showing the Location of Edge's Major Operated Properties
Corporate Overview
Production Overview
The Company’s average daily production in the second quarter of 2022 consisted of approximately 260 barrels of oil and natural gas liquids per day and 306 Mcf/d of natural gas (311 boe/d).
Operating income net to Edge from the Properties in the second quarter of 2022 was approximately $1.3 million, or $5.2 million on an annualized basis.
Gross Production Group Plot of Edge's Oil and Natural Gas Wells
Reserves Overview
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Properties contained remaining proved plus probable reserves of 1.0 million barrels of oil and natural gas liquids and 559 MMcf of natural gas (1.1 million boe), with an estimated net present value of $15.6 million using forecast pricing at a 10% discount.
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Properties contained remaining proved plus probable reserves of 1.0 million barrels of oil and natural gas liquids and 559 MMcf of natural gas (1.1 million boe), with an estimated net present value of $15.6 million using forecast pricing at a 10% discount.
Marketing Overview
Edge has 30-day evergreen contracts in place with Cenovus Energy Inc. and Repsol Oil & Gas Canada Inc. for its operated oil production.
For its non-operated production, Edge is paid through JIB by the operators.
LMR Overview
Edge has made capital spending on ARO a key priority since inception in February of 2020. The Company has completed $1.2 million of ARO work since May 1, 2020.
Edge has only one near-term abandonment candidate in its well inventory, which provides for a minimal inactive liability number and low mandatory spending requirements. Edge’s commitment to ARO and strong Deemed Asset Values in both Alberta and Saskatchewan provide a significant asset base to ensure that the Company could continue to grow through acquisitions without regulatory scrutiny or the need for a security deposit.
The Company’s total deemed asset value between Alberta and Saskatchewan is $7.5 million.
Alberta
As of September 3, 2022, Edge’s net deemed asset value for its operated properties in Alberta was $1.4 million (deemed assets of $1.7 million and deemed liabilities of $321,608), with an LMR ratio of 5.36.
Since May 2020, the Company’s LMR ratio in Alberta has increased from 1.70 to 5.36.
The Company is awaiting a reclamation certificate for a well at Twining, which will reduce the deemed liabilities by $27,250 and raise the LMR ratio in Alberta to 5.86.
The LMR for each of the Alberta properties as of September 3, 2022 is summarized below.
Edge has 30-day evergreen contracts in place with Cenovus Energy Inc. and Repsol Oil & Gas Canada Inc. for its operated oil production.
For its non-operated production, Edge is paid through JIB by the operators.
LMR Overview
Edge has made capital spending on ARO a key priority since inception in February of 2020. The Company has completed $1.2 million of ARO work since May 1, 2020.
Edge has only one near-term abandonment candidate in its well inventory, which provides for a minimal inactive liability number and low mandatory spending requirements. Edge’s commitment to ARO and strong Deemed Asset Values in both Alberta and Saskatchewan provide a significant asset base to ensure that the Company could continue to grow through acquisitions without regulatory scrutiny or the need for a security deposit.
The Company’s total deemed asset value between Alberta and Saskatchewan is $7.5 million.
Alberta
As of September 3, 2022, Edge’s net deemed asset value for its operated properties in Alberta was $1.4 million (deemed assets of $1.7 million and deemed liabilities of $321,608), with an LMR ratio of 5.36.
Since May 2020, the Company’s LMR ratio in Alberta has increased from 1.70 to 5.36.
The Company is awaiting a reclamation certificate for a well at Twining, which will reduce the deemed liabilities by $27,250 and raise the LMR ratio in Alberta to 5.86.
The LMR for each of the Alberta properties as of September 3, 2022 is summarized below.
Summary of LMR by Property
The Company does not operate any facilities in Alberta.
Saskatchewan
As of September 28, 2022, Edge’s net deemed asset value for its operated properties in Saskatchewan was $3.7 million (deemed assets of $5.8 million and deemed liabilities of $2.1 million), with an LMR ratio 2.75.
Since May 2020, the Company’s LMR ratio in Saskatchewan has increased from 0.59 to 2.75.
The LMR for each of the Saskatchewan properties as of September 28, 2022 is summarized below.
Saskatchewan
As of September 28, 2022, Edge’s net deemed asset value for its operated properties in Saskatchewan was $3.7 million (deemed assets of $5.8 million and deemed liabilities of $2.1 million), with an LMR ratio 2.75.
Since May 2020, the Company’s LMR ratio in Saskatchewan has increased from 0.59 to 2.75.
The LMR for each of the Saskatchewan properties as of September 28, 2022 is summarized below.
Summary of LMR by Property
The Company does not operate any facilities in Saskatchewan.
British Columbia
The Company does not operate any wells or facilities in British Columbia.
Seismic
Edge has trade 2D seismic data in the Lloydminster, Maidstone (Golden Lake), Epping, Lashburn, Tangleflags, Celtic, Hillmond, Greenstreet and Fort Pitt areas of Saskatchewan. Additionally, Edge has trade 2D and 3D seismic in the Berrymoor/East Pembina and Baxter Lake areas of Alberta.
At Golden Lake, Edge has access to full 2D seismic across the section.
The Company does not operate any wells or facilities in British Columbia.
Seismic
Edge has trade 2D seismic data in the Lloydminster, Maidstone (Golden Lake), Epping, Lashburn, Tangleflags, Celtic, Hillmond, Greenstreet and Fort Pitt areas of Saskatchewan. Additionally, Edge has trade 2D and 3D seismic in the Berrymoor/East Pembina and Baxter Lake areas of Alberta.
At Golden Lake, Edge has access to full 2D seismic across the section.
Further details on the Company’s seismic data are available in the confidential virtual data room for parties that execute a confidentiality agreement.
Crypto Currency Mining
Edge Crypto Mining Inc. was formed to both monetize excess natural gas produced by Edge's heavy oil wells in the Lloydminster area and as a methane reduction strategy as part of the Company’s commitment to environmental stewardship.
Edge Crypto Mining Inc. is in a joint venture with D&B Mining Inc., the original owner and supplier of the Bitcoin mining equipment and Sea-Can. The joint venture is subject to a Joint Venture Agreement and an Operation and Maintenance Agreement dated January 5, 2022. The Joint Venture Agreement provides for a 50/50 split of Bitcoin mining proceeds between Edge and D&B. Edge physically operates the electricity generating equipment, and D&B physically operates the Sea-Can with the Bitcoin mining equipment contained within.
Edge has a Bitcoin setup on the 12-26-050-1W4 well site. The Company is planning to add a second operation at the 14-26-050-1W4 well site in the fourth quarter of 2022.
Edge currently has 0.46440737 in unsold Bitcoin inventory in a Slush Pool (USD$8,881). Further details on the crypto currency operation are available in the confidential virtual data room for parties upon execution of a confidentiality agreement.
Edge Crypto Mining Inc. was formed to both monetize excess natural gas produced by Edge's heavy oil wells in the Lloydminster area and as a methane reduction strategy as part of the Company’s commitment to environmental stewardship.
Edge Crypto Mining Inc. is in a joint venture with D&B Mining Inc., the original owner and supplier of the Bitcoin mining equipment and Sea-Can. The joint venture is subject to a Joint Venture Agreement and an Operation and Maintenance Agreement dated January 5, 2022. The Joint Venture Agreement provides for a 50/50 split of Bitcoin mining proceeds between Edge and D&B. Edge physically operates the electricity generating equipment, and D&B physically operates the Sea-Can with the Bitcoin mining equipment contained within.
Edge has a Bitcoin setup on the 12-26-050-1W4 well site. The Company is planning to add a second operation at the 14-26-050-1W4 well site in the fourth quarter of 2022.
Edge currently has 0.46440737 in unsold Bitcoin inventory in a Slush Pool (USD$8,881). Further details on the crypto currency operation are available in the confidential virtual data room for parties upon execution of a confidentiality agreement.
SASKATCHEWAN PROPERTIES
Edge holds operated working interests in the Big Gully, Dee Valley, Edam, Epping, Forest Bank, Golden Lake, Lashburn, Rush Lake, Silverdale, Standard Hill and Tangleflags areas of Saskatchewan, as well as a non-operated interest in two wells in the Hillmond area and one well in the Golden Lake area, as shown on the following plat.
Average daily production net to Edge from the Saskatchewan properties for the second quarter of 2022 was approximately 193 bbl/d of oil.
Operating income net to Edge from the Saskatchewan properties in the second quarter of 2022 was approximately $922,900, or $3.7 million on an annualized basis.
Operating income net to Edge from the Saskatchewan properties in the second quarter of 2022 was approximately $922,900, or $3.7 million on an annualized basis.
GOLDEN LAKE
Township 47, Range 23 W3At Golden Lake, Edge holds a 100% operated working interest in one half section of land in Section 14-047-23W3 and a 48.59% non-operated working interest in one horizontal well, Baytex Maidstone East Hz 91/06-14-047-23W3/00. In addition, Edge holds a 35% working interest in the well Edge LRM Maidstone E 102/16-14-47-23W3/0 which it drilled in December 2021 as a farm-in. Production from Golden Lake consists of heavy oil from the Cummings Formation.
Average daily production net to the Company from Golden Lake in the second quarter of 2022 was approximately 60 barrels of oil per day.
Net operating income from Golden Lake for the second quarter of 2022 averaged approximately $105,000 per month or $1.3 million on an annualized basis.
Edge has identified low-risk horizontal infill drilling in the Cummings Formation. The section is underdeveloped, and an ideal location for a waterflood based on projects operated by Cenovus Energy Inc. (formerly Husky Oil Operations Limited) directly offsetting Edge’s lands at Golden Lake.
Both Cenovus and Gear Energy Ltd. are successfully implementing waterflood and polymer flooding directly offsetting Edge’s lands at Golden Lake.
Additionally, Edge has identified two wells to be restarted at 111/07-01-048-24W3 and 111/08-01-048-24W3 at Golden Lake in the fourth quarter of 2022.
Golden Lake, Saskatchewan
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Golden Lake Upside
Cummings Formation
The lower Cretaceous Cummings sand is found at a depth of approximately 560 metres at Golden Lake. The depositional environment of the formation is interpreted as a deltaic sand based on the coarsening upward sequence of shale to fine-grained sands. The target is the reservoir in the upper portion of the sand.
The net pay in the Cumming sand at Golden Lake is approximately five metres thick. as shown in the following well log. Porosity averages 32-36% with permeabilities ranging from the 700 mD-1, 400 mD.
Cummings Formation
The lower Cretaceous Cummings sand is found at a depth of approximately 560 metres at Golden Lake. The depositional environment of the formation is interpreted as a deltaic sand based on the coarsening upward sequence of shale to fine-grained sands. The target is the reservoir in the upper portion of the sand.
The net pay in the Cumming sand at Golden Lake is approximately five metres thick. as shown in the following well log. Porosity averages 32-36% with permeabilities ranging from the 700 mD-1, 400 mD.
Husky Golden Lake 111/03-07-047-22W3
Cummings Formation Type Log
Cummings Formation Type Log
Based on offsetting wellbore patterns and reservoir development, Edge has four to five additional horizontal development drilling locations with the option to convert existing producers to water injection wells.
The offsetting infill drilling programs from Cenovus suggest that infill wells could have 100-day initial production rates between 80-100 boe/d.
The offsetting infill drilling programs from Cenovus suggest that infill wells could have 100-day initial production rates between 80-100 boe/d.
Cenovus initially applied for conversion of ten pads at Golden Lake to water injectors in Sections 13 and 23-047-23W3.
Production in these sections since the implementation of the waterflood have shown a recovery factor two to three times higher than primary recovery. Cenovus has implemented the waterflood with 50 metre interwell spacing on the lands offsetting Golden Lake/Maidstone and is currently converting to a polymer flood on certain sections.
In April 2021, Gear proposed a waterflood project focused in Section 12-047-23W3 targeting the Maidstone East Cummings Pool configured with five horizontal injectors.
In September 2022, Gear applied for an expansion to the existing waterflood project in the Maidstone East Cummings Pool in order to convert two additional horizontal wells into water injectors as outlined on the following map.
Golden Lake Facilities
The Company does not operate any facilities at Golden Lake.
Golden Lake Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Golden Lake property contained remaining proved plus probable reserves of 98,000 barrels of oil, with an estimated net present value of $1.4 million using forecast pricing at a 10% discount.
The Company does not operate any facilities at Golden Lake.
Golden Lake Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Golden Lake property contained remaining proved plus probable reserves of 98,000 barrels of oil, with an estimated net present value of $1.4 million using forecast pricing at a 10% discount.
Golden Lake LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Golden Lake was $1.2 million (deemed assets of $1.6 million and deemed liabilities of $332,220), with an LMR ratio of 4.67.
As of September 28, 2022, Edge’s net deemed asset value for Golden Lake was $1.2 million (deemed assets of $1.6 million and deemed liabilities of $332,220), with an LMR ratio of 4.67.
At Golden Lake Edge is planning to abandon the 100% working interest well 111/10-14-047-23W3/00 in the third quarter of 2022.
Golden Lake Well List
Click here to download the complete well list in Excel.
Golden Lake Well List
Click here to download the complete well list in Excel.
EDAM
Township 48, Range 19-20 W3
At Edam, Edge holds a 100% operated working interest in approximately one half-section of land.
Average daily production net to the Company from Edam in the second quarter of 2022 was approximately 58 barrels of oil per day.
Net operating income from Edam for the second quarter of 2022 averaged approximately $65,000 per month or $780,000 on an annualized basis.
The Company believes the Waseca well 111/05-19-048-19W3/0 could be recompleted and commingled with the Sparky and GP formations.
At Edam, Edge holds a 100% operated working interest in approximately one half-section of land.
Average daily production net to the Company from Edam in the second quarter of 2022 was approximately 58 barrels of oil per day.
Net operating income from Edam for the second quarter of 2022 averaged approximately $65,000 per month or $780,000 on an annualized basis.
The Company believes the Waseca well 111/05-19-048-19W3/0 could be recompleted and commingled with the Sparky and GP formations.
Edam, Saskatchewan
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Edam Facilities
The Company does not operate any facilities at Edam.
Edam Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Edam property contained remaining proved plus probable reserves of 60,000 barrels of oil, with an estimated net present value of $834,000 using forecast pricing at a 10% discount.
Edam LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Edam was $970,098 (deemed assets of $1.4 million and deemed liabilities of $381,225), with an LMR ratio of 3.54.
As of September 28, 2022, Edge’s net deemed asset value for Edam was $970,098 (deemed assets of $1.4 million and deemed liabilities of $381,225), with an LMR ratio of 3.54.
Edam Well List
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TANGLEFLAGS
Township 51-52, Range 24-27 W3
At Tangleflags, the Company holds 69.2301%-100% operated working interests in approximately two sections of land.
Average daily production net to the Company from Tangleflags in the second quarter of 2022 was approximately 37 barrels of oil per day.
Net operating income from Tangleflags for the second quarter of 2022 averaged approximately $79,000 per month or $948,000 on an annualized basis.
At Tangleflags, the Company holds 69.2301%-100% operated working interests in approximately two sections of land.
Average daily production net to the Company from Tangleflags in the second quarter of 2022 was approximately 37 barrels of oil per day.
Net operating income from Tangleflags for the second quarter of 2022 averaged approximately $79,000 per month or $948,000 on an annualized basis.
Tangleflags, Saskatchewan
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Tangleflags Upside
The following table outlines Edge’s identified restart and recompletion upside candidates at Tangleflags.
Further details are available in the confidential virtual data room for parties upon execution of a confidentiality agreement.
Edge conducted a recompletion of the 111/05-26-051-25W3/0 well, perforating the McLaren and GP formations in mid-September 2022. Initial production results have shown less than 63 barrels per day of total fluid with an estimated average oil cut of 75%. Edge expects this fluid rate to stabilize in the coming weeks, which would result in a roughly 15% increase to overall corporate production.
Rife Et Al Tangleflags 111/05-26-051-25W3/0
McLaren & GP Reservoir Parameters
McLaren & GP Reservoir Parameters
The Company has identified recompletion potential in the GP formation in the 111/08-08-051-24W3/02 well as outlined below.
Rife Tangleflags 111/08-08-051-24W3/02
GP Reservoir Parameters
GP Reservoir Parameters
Tangleflags Facilities
The Company does not operate any facilities at Tangleflags.
Tangleflags Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Tangleflags property contained remaining proved plus probable reserves of 172,000 barrels of oil, with an estimated net present value of $4.7 million using forecast pricing at a 10% discount.
Tangleflags LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Tangleflags was $926,570 (deemed assets of $1.1 million and deemed liabilities of $132,750), with an LMR ratio of 7.98.
Tangleflags Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
STANDARD HILL
Township 49, Range 22 W3
At Standard Hill, Edge holds a 100% operated working interest in two LSDs of land.
Average daily production net to the Company from Standard Hill in the second quarter of 2022 was approximately 14 barrels of oil per day.
Net operating income from Standard Hill for the second quarter of 2022 averaged approximately $27,500 per month or $330,000 on an annualized basis.
At Standard Hill, Edge holds a 100% operated working interest in two LSDs of land.
Average daily production net to the Company from Standard Hill in the second quarter of 2022 was approximately 14 barrels of oil per day.
Net operating income from Standard Hill for the second quarter of 2022 averaged approximately $27,500 per month or $330,000 on an annualized basis.
Standard Hill, Saskatchewan
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Standard Hill Facilities
The Company does not operate any facilities at Standard Hill.
Standard Hill Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Standard Hill property contained remaining proved plus probable reserves of 74,000 barrels of oil, with an estimated net present value of $1.6 million using forecast pricing at a 10% discount.
Standard Hill LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Standard Hill was $220,427 (deemed assets of $348,727 and deemed liabilities of $123,300), with an LMR ratio of 2.79.
DEE VALLEY
Township 49, Range 22 W3
At Dee Valley, Edge holds a 62.61% operated working interest in approximately one section of land.
Average daily production net to the Company from Dee Valley in the second quarter of 2022 was approximately 12 barrels of oil per day.
Net operating income from Dee Valley for the second quarter of 2022 averaged approximately $16,000 per month or $192,000 on an annualized basis.
The Company believes the well 111/04-08-049-22W3/0 could be recompleted in the Waseca Formation.
At Dee Valley, Edge holds a 62.61% operated working interest in approximately one section of land.
Average daily production net to the Company from Dee Valley in the second quarter of 2022 was approximately 12 barrels of oil per day.
Net operating income from Dee Valley for the second quarter of 2022 averaged approximately $16,000 per month or $192,000 on an annualized basis.
The Company believes the well 111/04-08-049-22W3/0 could be recompleted in the Waseca Formation.
Dee Valley, Saskatchewan
Gross Production Group Plot of Edge's Oil and Natural Gas Wells
Dee Valley Facilities
The Company does not operate any facilities at Dee Valley.
Dee Valley Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Dee Valley property contained remaining proved plus probable reserves of 35,000 barrels of oil, with an estimated net present value of $240,000 using forecast pricing at a 10% discount.
Dee Valley LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Dee Valley was $456,542 (deemed assets of $620,942 and deemed liabilities of $164,400), with an LMR ratio of 3.78.
EPPING
Township 46, Range 27 W3
At Epping, Edge holds a 62.61% operated working interest in three LSDs of land.
Average daily production net to the Company from Epping in the second quarter of 2022 was approximately five barrels of oil per day.
Net operating income from Epping for the second quarter of 2022 averaged approximately $5,600 per month or $67,000 on an annualized basis.
At Epping, Edge holds a 62.61% operated working interest in three LSDs of land.
Average daily production net to the Company from Epping in the second quarter of 2022 was approximately five barrels of oil per day.
Net operating income from Epping for the second quarter of 2022 averaged approximately $5,600 per month or $67,000 on an annualized basis.
Epping, Saskatchewan
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Epping Facilities
The Company does not operate any facilities at Epping.
Epping Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Epping property contained remaining proved plus probable reserves of 5,000 barrels of oil, with an estimated net present value of $16,000 using forecast pricing at a 10% discount.
The Company does not operate any facilities at Epping.
Epping Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Epping property contained remaining proved plus probable reserves of 5,000 barrels of oil, with an estimated net present value of $16,000 using forecast pricing at a 10% discount.
Epping LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Epping was $105,433 (deemed assets of $214,933 and deemed liabilities of $109,500), with an LMR ratio of 1.96.
Epping Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
FOREST BANK
Township 49, Range 24 W3
At Forest Bank, Edge’s holds a 100% operated working interest in one section of land.
Production from Forest Bank was shut-in in April, 2020.
The Company has identified a number of restart and recompletion candidates in Section 16-049-24W3.
At Forest Bank, Edge’s holds a 100% operated working interest in one section of land.
Production from Forest Bank was shut-in in April, 2020.
The Company has identified a number of restart and recompletion candidates in Section 16-049-24W3.
Forest Bank, Saskatchewan
Gross Production Group Plot of Edge's Oil and Natural Gas Wells
Forest Bank Upside
At Forest Bank, the Company has identified recompletion potential for 12 wells on Section 16-049-24W3 in the Waseca Sand, Sparky Sand and Rex Sand of the Grand Rapids Formation, Mannville Group. The Upper Mannville in the area is dominated by stacked continental to marginal marine facies.
The Company also believes three 800-metre single-leg infill horizontal wells could be drilled in the Rex Sand, at Forest Bank at an estimated cost of $900,000 per well.
There has been significant proposed infill drilling, recompletion and waterflood projects in the lands directly offsetting and nearby Edge’s land in Township 049-24W3 by offsetting operators including Cenovus Energy Inc., Chronos Resources Ltd., Rife Resources Ltd., West Lake Energy Corp.
The following table outlines the Company’s identified restart and recompletion upside candidates at Forest Bank.
Waseca Sand
The Waseca Sand at Forest Bank consists of stacked marine sands deposited in a shallow marine environment, with coarsening upwards profiles. The sands are separated by thin tight shale beds.
The Waseca sands are trapped both structurally and stratigraphically in this area. The Company believes the Lower Waseca is an attractive target, being a thin sand at the top of a marine deposit cycle in the Lower Waseca. Pay thickness is approximately one metre, with porosity of up to 33.5% and resistivity of approximately 5 ohms.
The Waseca Sand is generally present throughout Section 16-049-24W3 and most prominently runs along a NE-SW strike line through the heart of Section 16 with approximately 2-3 metres of effective net sand.
The Company believes recompletion opportunities exist here as the Waseca reservoir displays excellent potential and commonly offsets prolific primary production.
The Waseca Sand at Forest Bank consists of stacked marine sands deposited in a shallow marine environment, with coarsening upwards profiles. The sands are separated by thin tight shale beds.
The Waseca sands are trapped both structurally and stratigraphically in this area. The Company believes the Lower Waseca is an attractive target, being a thin sand at the top of a marine deposit cycle in the Lower Waseca. Pay thickness is approximately one metre, with porosity of up to 33.5% and resistivity of approximately 5 ohms.
The Waseca Sand is generally present throughout Section 16-049-24W3 and most prominently runs along a NE-SW strike line through the heart of Section 16 with approximately 2-3 metres of effective net sand.
The Company believes recompletion opportunities exist here as the Waseca reservoir displays excellent potential and commonly offsets prolific primary production.
Rife Lashburn DD 91/09-16-049-24W3
Waseca Type Log
Waseca Type Log
The Waseca Sand net pay at Forest Bank is shown on the following map.
Below is a production profile of a Waseca vertical well.
Sparky Sand
The Sparky Sand is made up of multiple fingers which comprise several (up to four) cycles of thin, highly prolific sands present throughout Section 16 but generally degrading through non-deposition or erosion in the far northwest corner of Section 16-049-24W3.
The Sparky Sand is found approximately 50 metres below the top of the Mannville Group at Forest Bank. The Sparky Sand overlies a thin shale above the General Petroleum Sand and is overlain disconformably by the Waseca sand. The Sparky in the Forest Bank area consists of four coarsening upward shale to sandstone sequences capped with a coal above the uppermost sand.
The most common and widespread sand is the Sparky B which averages approximately two to three metres of net pay. Average net pay thickness of the various sand sequences averages approximately one metre. The entire Sparky interval is approximately 15 metres in thickness. The sequences consist of very fine to fine grained sand interpreted to have been deposited in shallow deltaic and near-shore marine environments. This sequence is regionally cut by incised valleys which contain sand and shale channels.
The lowermost sand finger has been mapped as part of the Sparky but may represent the top of the GP reservoir. The Company believes there is recompletion potential in any of the fingers that have not been completed.
Rife Lashburn DD 91-09-16-049-24W3
Sparky Type Log
Sparky Type Log
Below is a production profile of a Sparky vertical well.
Rex Sand
The Lower Cretaceous Rex Sand of the Upper Mannville Group has potential for horizontal development at Forest Bank. The bulk of this target sand body lies to the north running in the typical regional NW-SE orientation but a small remnant sand cuts through the NE corner of Section 16-049-24W3.
The Company believes there is potential for a half-mile horizontal well in the northeast quadrant of Section 16-049-24W3.
Horizontal drilling immediately to the north has averaged approximately 50,000 barrels of cumulative production per lateral mile. The map below outlines horizontal development in the Rex by Cenovus offsetting Edge’s land.
The Lower Cretaceous Rex Sand of the Upper Mannville Group has potential for horizontal development at Forest Bank. The bulk of this target sand body lies to the north running in the typical regional NW-SE orientation but a small remnant sand cuts through the NE corner of Section 16-049-24W3.
The Company believes there is potential for a half-mile horizontal well in the northeast quadrant of Section 16-049-24W3.
Horizontal drilling immediately to the north has averaged approximately 50,000 barrels of cumulative production per lateral mile. The map below outlines horizontal development in the Rex by Cenovus offsetting Edge’s land.
The Rex Sand is overlain by the General Petroleum Formation and underlain by the Lloydminster Formation. The Rex Sand generally consists of a series of coarsening upwards sequences of shale to fine-grained, well sorted sandstone deposited in shallow deltaic and nearshore marine environments.
While the overall Rex Formation thickness is approximately 30 metres, the drilling target has pay thicknesses of 2.0 to 5.5 metres and porosity values of 28 – 33% with water saturation between 36% – 40%. Regional trapping mechanisms are a combination of structural closures and stratigraphic pinch-outs associated with shale-filled channel cuts.
Rife Et Al Lashburn DD 111/09-16-049-24W3
Rex Type Log
Rex Type Log
The Rex Sand net pay at Forest Bank is shown on the following map.
Below is a production profile of a horizontal Rex well.
Forest Bank Facilities
The Company does not operate any facilities at Forest Bank.
Forest Bank Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Forest Bank property contained remaining proved plus probable reserves of 530,000 barrels of oil, with an estimated net present value of $8.5 million using forecast pricing at a 10% discount.
Forest Bank LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Forest Bank was ($518,969) (deemed assets of $4,576 and deemed liabilities of $523,545), with an LMR ratio of 0.01.
HILLMOND
Township 51-52, Range 24-27 W3
At Hillmond, the Company holds a 62.61% working interest in the wells CNRL Hillmond DD 141/01-26-051-26W3/0 and CNRL Hillmond DD 191/14-26-051-26W3/00 operated by Canadian Natural Resources Limited.
Average daily production net to the Company from Hillmond in the second quarter of 2022 was approximately four barrels of oil per day.
Net operating income from Hillmond for the second quarter of 2022 averaged approximately $8,300 per month or $100,000 on an annualized basis.
At Hillmond, the Company holds a 62.61% working interest in the wells CNRL Hillmond DD 141/01-26-051-26W3/0 and CNRL Hillmond DD 191/14-26-051-26W3/00 operated by Canadian Natural Resources Limited.
Average daily production net to the Company from Hillmond in the second quarter of 2022 was approximately four barrels of oil per day.
Net operating income from Hillmond for the second quarter of 2022 averaged approximately $8,300 per month or $100,000 on an annualized basis.
Hillmond, Saskatchewan
Gross Production Plot of CNRL Hillmond DD 141/01-26-051-26W3/0
Hillmond Facilities
The Company does not operate any facilities at Hillmond.
Hillmond Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Hillmond property contained remaining proved plus probable reserves of 4,000 barrels of oil, with an estimated net present value of $45,000 using forecast pricing at a 10% discount.
Hillmond LMR as of September 28, 2022
The Company does not operate any wells or facilities at Hillmond.
Hillmond Well List
Click here to download the complete well list in Excel.
BIG GULLY
Township 49, Range 25 W3
At Big Gully, Edge holds a 100% operated working interest in one well Baytex Big Gully 111/15-15-049-25W3/03.
Production from the 15-15 well averaged three barrels of oil per day in the second quarter of 2022.
Net operating income from Big Gully for the second quarter of 2022 averaged approximately $5,500 per month or $66,500 on an annualized basis.
At Big Gully, Edge holds a 100% operated working interest in one well Baytex Big Gully 111/15-15-049-25W3/03.
Production from the 15-15 well averaged three barrels of oil per day in the second quarter of 2022.
Net operating income from Big Gully for the second quarter of 2022 averaged approximately $5,500 per month or $66,500 on an annualized basis.
Edge believes that there are potential downspaced wells to be drilled on the northeast quarter of Section 15-49-25W3. The Company has all P&NG rights in the entire quarter under lease, where a down spaced well could target the Sparky, Waseca, GP, McLaren or Lloydminster formations. The 101/01-22-049-25W3/00 well offsetting Edge’s lands had an initial production rate of 140 boe/d from the Sparky.
The northeast quarter of Section 15 was not evaluated in the Trimble Report. Edge believes that there are unbooked in this quarter.
The northeast quarter of Section 15 was not evaluated in the Trimble Report. Edge believes that there are unbooked in this quarter.
Baytex Big Gully 111/15-15-049-25W3/00
Type Log
Big Gully, Saskatchewan
Gross Production Group Plot of Edge's Oil and Natural Gas Well
Type Log
Big Gully, Saskatchewan
Gross Production Group Plot of Edge's Oil and Natural Gas Well
Big Gully Facilities
The Company does not operate any facilities at Big Gully.
Big Gully Reserves
Big Gully was not evaluated as part of the Trimble Report.
Big Gully LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Big Gully was $544,618 (deemed assets of $658,743 and deemed liabilities of $114,125), with an LMR ratio of 5.77.
LASHBURN
Township 48, Range 25 W3
At Lashburn, Edge’s holds a 9.06141% working interest in one section of land with an abandoned oil well.
There is currently no production from Lashburn.
At Lashburn, Edge’s holds a 9.06141% working interest in one section of land with an abandoned oil well.
There is currently no production from Lashburn.
Lashburn Facilities
The Company does not operate any facilities at Lashburn.
Lashburn Reserves
The Lashburn property was not evaluated in the Trimble Report.
Lashburn LMR as of September 28, 2022
The Company does not operate any wells or facilities at Lashburn.
Lashburn Well List
Click here to download the complete well list in Excel.
The Company does not operate any facilities at Lashburn.
Lashburn Reserves
The Lashburn property was not evaluated in the Trimble Report.
Lashburn LMR as of September 28, 2022
The Company does not operate any wells or facilities at Lashburn.
Lashburn Well List
Click here to download the complete well list in Excel.
SILVERDALE
Township 48, Range 27 W3
At Silverdale, Edge holds a 100% operated working interest in one suspended oil well.
There is currently no production from Silverdale.
At Silverdale, Edge holds a 100% operated working interest in one suspended oil well.
There is currently no production from Silverdale.
Silverdale Facilities
The Company does not operate any facilities at Silverdale.
Silverdale Reserves
The Silverdale property was not evaluated in the Trimble Report.
Silverdale LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Silverdale was ($169,125) (deemed assets of $0 and deemed liabilities of $169,125), with an LMR ratio of 0.00.
The Company does not operate any facilities at Silverdale.
Silverdale Reserves
The Silverdale property was not evaluated in the Trimble Report.
Silverdale LMR as of September 28, 2022
As of September 28, 2022, Edge’s net deemed asset value for Silverdale was ($169,125) (deemed assets of $0 and deemed liabilities of $169,125), with an LMR ratio of 0.00.
ALBERTA OPERATED PROPERTIES
Edge holds operated interests in the Baxter Lake and Lloydminster areas of Alberta.
Average daily production net to Edge from the Alberta operated properties for the second quarter of 2022 was approximately 38 bbl/d of oil.
Operating income net to Edge from the Alberta operated properties in the second quarter of 2022 was approximately $140,000, or $560,000 on an annualized basis.
Average daily production net to Edge from the Alberta operated properties for the second quarter of 2022 was approximately 38 bbl/d of oil.
Operating income net to Edge from the Alberta operated properties in the second quarter of 2022 was approximately $140,000, or $560,000 on an annualized basis.
*Production from July 2022 after reactivation
The Baxter Lake property had a negative net operating income for the second quarter of 2022 because the well was shut-in. Operating income net to Edge for July 2022 was approximately $7,000 after reactivation of the well at Baxter Lake.
LLOYDMINSTER
Township 50, Range 1 W4
At Lloydminster, Edge holds a 100% operated working interest in three heavy oil wells.
Average daily production net to the Company from Lloydminster in the second quarter of 2022 was approximately 29 barrels of oil per day.
Net operating income from Lloydminster for the second quarter of 2022 averaged approximately $52,000 per month or $624,000 on an annualized basis.
The three heavy oil wells at Lloydminster have historically been operated in a cyclical nature. Edge believes that a more consistent operation will benefit the long-term performance of the high volume lift wells, as the historical cyclical nature of the operation has contributed to a perceived high-decline associated with the wells. Adjusting the operational strategy will narrow the disconnect between the significant cash flow provided by the wells versus the reserve value assigned to the property.
At Lloydminster, Edge holds a 100% operated working interest in three heavy oil wells.
Average daily production net to the Company from Lloydminster in the second quarter of 2022 was approximately 29 barrels of oil per day.
Net operating income from Lloydminster for the second quarter of 2022 averaged approximately $52,000 per month or $624,000 on an annualized basis.
The three heavy oil wells at Lloydminster have historically been operated in a cyclical nature. Edge believes that a more consistent operation will benefit the long-term performance of the high volume lift wells, as the historical cyclical nature of the operation has contributed to a perceived high-decline associated with the wells. Adjusting the operational strategy will narrow the disconnect between the significant cash flow provided by the wells versus the reserve value assigned to the property.
Lloydminster, Alberta
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Lloydminster Facilities
The Company does not operate any facilities at Lloydminster.
Lloydminster Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Lloydminster property contained remaining proved plus probable reserves of 14,000 barrels of oil, with an estimated net present value of ($17,000) using forecast pricing at a 10% discount.
The Company does not operate any facilities at Lloydminster.
Lloydminster Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Lloydminster property contained remaining proved plus probable reserves of 14,000 barrels of oil, with an estimated net present value of ($17,000) using forecast pricing at a 10% discount.
Lloydminster LMR as of September 3, 2022
As of September 3, 2022, Edge’s net deemed asset value for Lloydminster was $1.3 million (deemed assets of $1.6 million and deemed liabilities of $221,115), with an LMR ratio of 7.05.
As of September 3, 2022, Edge’s net deemed asset value for Lloydminster was $1.3 million (deemed assets of $1.6 million and deemed liabilities of $221,115), with an LMR ratio of 7.05.
BAXTER LAKE
Township 47, Range 5 W4
At Baxter Lake, Edge holds a 90.4375% operated working interest in one well Freehold Et Al Baxt 100/07-08-047-05W4/00.
The 07-08 well was reactivated in June 2022 after being shut-in in January 2022. The well was shut-in due to a pump failure in January. Prior to being shut-in, the well produced oil from the Sparky Formation at a rate of approximately 10 barrels per day prior to being shut-in. Current daily production net to the Company from Baxter Lake is approximately nine barrels of oil per day.
Net operating income from Baxter Lake in July 2022 was approximately $7,250 or $87,000 on an annualized basis.
At Baxter Lake, Edge holds a 90.4375% operated working interest in one well Freehold Et Al Baxt 100/07-08-047-05W4/00.
The 07-08 well was reactivated in June 2022 after being shut-in in January 2022. The well was shut-in due to a pump failure in January. Prior to being shut-in, the well produced oil from the Sparky Formation at a rate of approximately 10 barrels per day prior to being shut-in. Current daily production net to the Company from Baxter Lake is approximately nine barrels of oil per day.
Net operating income from Baxter Lake in July 2022 was approximately $7,250 or $87,000 on an annualized basis.
Baxter Lake, Alberta
Gross Production Plot of Edge's Oil Well
Baxter Lake Facilities
The Company does not operate any facilities at Baxter Lake.
Baxter Lake Reserves
The Baxter Lake property was not evaluated in the Trimble Report.
Baxter Lake LMR as of September 3, 2022
As of September 3, 2022, Edge’s net deemed asset value for Baxter Lake was $92,978 (deemed assets of $166,221 and deemed liabilities of $73,243), with an LMR ratio of 2.27.
The Company does not operate any facilities at Baxter Lake.
Baxter Lake Reserves
The Baxter Lake property was not evaluated in the Trimble Report.
Baxter Lake LMR as of September 3, 2022
As of September 3, 2022, Edge’s net deemed asset value for Baxter Lake was $92,978 (deemed assets of $166,221 and deemed liabilities of $73,243), with an LMR ratio of 2.27.
Baxter Lake Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
GILBY
Township 40, Range 3 W5
At Gilby, Edge holds a 40% operated working interest in one well Freehold Et Al Gilby 100/03-02-040-03W5/00.
There is currently no production from Gilby.
At Gilby, i3 has a surface lease that overlaps with Edge’s interests, therefore the AER has granted Edge an overlap exemption for the LMR since Edge cannot reclaim the lease without i3 abandoning and reclaiming its lease first, therefore Edge’s deemed liability is $0 for the 03-02 well. Edge’s well is completely downhole abandoned and cut and capped.
At Gilby, Edge holds a 40% operated working interest in one well Freehold Et Al Gilby 100/03-02-040-03W5/00.
There is currently no production from Gilby.
At Gilby, i3 has a surface lease that overlaps with Edge’s interests, therefore the AER has granted Edge an overlap exemption for the LMR since Edge cannot reclaim the lease without i3 abandoning and reclaiming its lease first, therefore Edge’s deemed liability is $0 for the 03-02 well. Edge’s well is completely downhole abandoned and cut and capped.
Gilby, Alberta
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Gilby Facilities
The Company does not operate any facilities at Gilby.
Gilby Reserves
The Gilby property was not evaluated in the Trimble Report.
Gilby LMR as of September 3, 2022
At Gilby, i3 Energy PLC has a surface lease that overlaps with Edge’s interests, therefore the AER has granted Edge an overlap exemption for the abandonment since Edge cannot reclaim the lease for the Freehold Et Al Gilby 100/03-02-040-03W5/00 well without i3 abandoning and reclaiming its lease first.
The deemed liability for the 03-02 well is $0 as granted by the AER due to the overlap exemption.
Gilby Well List
Click here to download the complete well list in Excel.
The Company does not operate any facilities at Gilby.
Gilby Reserves
The Gilby property was not evaluated in the Trimble Report.
Gilby LMR as of September 3, 2022
At Gilby, i3 Energy PLC has a surface lease that overlaps with Edge’s interests, therefore the AER has granted Edge an overlap exemption for the abandonment since Edge cannot reclaim the lease for the Freehold Et Al Gilby 100/03-02-040-03W5/00 well without i3 abandoning and reclaiming its lease first.
The deemed liability for the 03-02 well is $0 as granted by the AER due to the overlap exemption.
Gilby Well List
Click here to download the complete well list in Excel.
ALBERTA NON-OPERATED PROPERTIES
Edge holds non-operated working interests in the Chauvin and Ribstone areas of Alberta.
Average daily production net to Edge from the Chauvin and Ribstone properties for the second quarter of 2022 was approximately 23 barrels of oil per day and 62 Mcf/d of natural gas (33 boe/d).
Operating income net to Edge from the Chauvin and Ribstone properties in the second quarter of 2022 was approximately $142,650, or $570,600 on an annualized basis.
Average daily production net to Edge from the Chauvin and Ribstone properties for the second quarter of 2022 was approximately 23 barrels of oil per day and 62 Mcf/d of natural gas (33 boe/d).
Operating income net to Edge from the Chauvin and Ribstone properties in the second quarter of 2022 was approximately $142,650, or $570,600 on an annualized basis.
CHAUVIN
Township 43, Range 1 W4At Chauvin, Edge holds a 14.49224% non-operated working interest in three quarter-sections of land on which there are several producing oil wells operated by Repsol Oil & Gas Canada Inc.
Average daily production net to the Company from Chauvin in the second quarter of 2022 was approximately five barrels of oil per day and 13 Mcf/d of natural gas (seven boe/d).
Net operating income from Chauvin for the second quarter of 2022 averaged approximately $9,350 per month or $112,200 on an annualized basis.
Chauvin, Alberta
Gross Production Group Plot of Edge's Oil and Natural Gas Wells
Chauvin Facilities
At Chauvin, the Company holds an 8.2% non-operated working interest in the 11-34-042-04W4 battery.
Chauvin Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Chauvin property contained remaining proved plus probable reserves of 3,000 barrels of oil, with an estimated net present value of $44,000 using forecast pricing at a 10% discount.
Chauvin LMR as of September 3, 2022
The Company does not operate any wells or facilities at Chauvin.
Chauvin Well List
Click here to download the complete well list in Excel.
The Company does not operate any wells or facilities at Chauvin.
Chauvin Well List
Click here to download the complete well list in Excel.
RIBSTONE
Township 42-43, Range 3-4 W4
At Ribstone, Edge holds a 16.67% non-operated working interest in approximately 3.75 sections of land on which there are several producing oil and natural gas wells as well as water injection wells. At Ribstone, Section 34-042-04W4 is operated by Repsol Oil & Gas Canada Inc. and the remainder is operated by West Lake Energy Corp.
Average daily production net to the Company from Ribstone in the second quarter of 2022 was approximately 18 barrels of oil per day and 49 Mcf/d of natural gas (26 boe/d).
Net operating income from Ribstone for the second quarter of 2022 averaged approximately $38,200 per month or $458,400 on an annualized basis.
At Ribstone, Edge holds a 16.67% non-operated working interest in approximately 3.75 sections of land on which there are several producing oil and natural gas wells as well as water injection wells. At Ribstone, Section 34-042-04W4 is operated by Repsol Oil & Gas Canada Inc. and the remainder is operated by West Lake Energy Corp.
Average daily production net to the Company from Ribstone in the second quarter of 2022 was approximately 18 barrels of oil per day and 49 Mcf/d of natural gas (26 boe/d).
Net operating income from Ribstone for the second quarter of 2022 averaged approximately $38,200 per month or $458,400 on an annualized basis.
Ribstone, Alberta
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Gross Production Group Plot of Edge's Oil & Natural Gas Wells
Ribstone Facilities
At Ribstone, the Company holds a 3.58727% non-operated working interest in the 09-04-043-04W4 gas compression facility.
Ribstone Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Ribstone property contained remaining proved plus probable reserves of 32,000 barrels of oil and 93 MMcf of natural gas (48,000 boe), with an estimated net present value of $552,000 using forecast pricing at a 10% discount.
At Ribstone, the Company holds a 3.58727% non-operated working interest in the 09-04-043-04W4 gas compression facility.
Ribstone Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Ribstone property contained remaining proved plus probable reserves of 32,000 barrels of oil and 93 MMcf of natural gas (48,000 boe), with an estimated net present value of $552,000 using forecast pricing at a 10% discount.
Ribstone LMR as of September 3, 2022
The Company does not operate any wells or facilities at Ribstone.
Ribstone Well List
Click here to download the complete well list in Excel.
The Company does not operate any wells or facilities at Ribstone.
Ribstone Well List
Click here to download the complete well list in Excel.
ADDITIONAL NON-OPERATED PROPERTIES
Edge also holds various minor non-operated interests throughout Alberta and British Columbia as outlined on the following plat.
This includes non-operated working interest in the following units: Three Hills Gas Unit No. 1, Pembina Belly River B South Unit, Brazeau River Gas Unit No. 1, Snipe Lake Beaverhill Lake Unit No. 1 and Pembina Belly River X Unit.
This includes non-operated working interest in the following units: Three Hills Gas Unit No. 1, Pembina Belly River B South Unit, Brazeau River Gas Unit No. 1, Snipe Lake Beaverhill Lake Unit No. 1 and Pembina Belly River X Unit.
Southern Alberta Non-Operated Properties
Average daily production net to Edge from the Southern Alberta Non-Operated properties for the second quarter of 2022 was approximately six Mcf/d of natural gas (one boe/d total).
Central Alberta Non-Operated Properties
Average daily production net to Edge from the Central Alberta Non-Operated properties for the second quarter of 2022 was approximately two barrels of oil and natural gas liquids per day and 50 Mcf/d of natural gas (11 boe/d total).
Operating income net to Edge from the Central Alberta Non-Operated properties in the second quarter of 2022 was approximately $18,700, or $75,000 on an annualized basis.
Northern Alberta Non-Operated Properties
Average daily production net to Edge from the Northern Alberta Non-Operated properties for the second quarter of 2022 was approximately three barrels of oil per day and five Mcf/d of natural gas (four boe/d total).
Operating income net to Edge from the Northern Alberta Non-Operated properties in the second quarter of 2022 was approximately $7,200, or $29,000 on an annualized basis.
British Columbia Non-Operated Properties
Average daily production net to Edge from the British Columbia Non-Operated properties for the second quarter of 2022 was approximately 183 Mcf/d of natural gas and one barrel of natural gas liquids per day (32 boe/d).
Operating income net to Edge from the British Columbia Non-Operated properties in the second quarter of 2022 was approximately $55,300, or $222,000 on an annualized basis.
Additional Minor Non-Operated Properties Facilities
The Company holds interests in the following non-operated facilities. Further details regarding the Company’s facilities are available in the confidential virtual data room for parties upon execution of a confidentiality agreement.
Additional Minor Non-Operated Properties Marketing
The Company is paid for its oil and natural gas production from the Additional Minor Non-Operated properties by JIB from the various operators.
Additional Minor Non-Operated Properties Reserves
Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Edge’s Properties (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022.
Trimble estimated that, as of August 31, 2022, the Additional Minor Non-Operated Properties contained remaining proved plus probable reserves of 16,000 barrels of oil and natural gas liquids and 385 MMcf of natural gas (79,000 boe), with an estimated net present value of $444,000 using forecast pricing at a 10% discount.
Additional Minor Non-Operated Properties LMR
The company does not operate any wells of facilities associated with the Additional Minor Non-Operated properties.
Additional Minor Non-Operated Properties Well List
Click here to download the complete well list in Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting proposals relating to this process until 12:00 pm on Thursday November 10, 2022.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
Sayer Energy Advisors is accepting proposals from interested parties until
noon on Thursday November 10, 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.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 (tpavic@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: summary land information, the Trimble Report, LMR information, most recent net operations summary, detailed facilities information and other relevant corporate, financial and technical information.
Download Confidentiality Agreement
To receive further information on the Company please contact Tom Pavic, Ben Rye or Grazina Palmer at 403.266.6133.