Under Review / Long Fortune Petroleum (SK) Corporation
Long Fortune Petroleum (SK) CorporationProperty Divestiture
Bid Deadline: November 17, 2022
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At Moosomin, Long Fortune holds a 100% working interest in the 111/09-14-014-30W1/0 and 121/09-14-014-30W1/0 oil wells which produce from the Gravelbourg Formation and the suspended oil well 101/10-14-014-30W1/0. Long Fortune also holds a 20% working interest in the 131/05-13-014-30W1/0 oil well operated by Dawn Energy Inc. which produces oil from the Gravelbourg Formation at a rate of approximately six barrels of oil per day gross.
Long Fortune holds a 100% working interest in the water disposal well Long Fortune Moosomin 121/15-14-014-30W1/02. The Company injects salt water at a rate of approximately 400 barrels of water per day into the Mannville Group.
Daily production net to Long Fortune for the second quarter of 2022 was approximately 14 barrels of oil per day.
Operating income net to Long Fortune for the second quarter of 2022 averaged approximately $32,700 per month, or approximately $392,400 on an annualized basis.
Long Fortune estimates the Bakken Formation at Moosomin to contain over four million barrels of oil reserves with estimated recoverable reserves of about 1.2 million barrels of oil. Regionally, the Bakken is laterally distributed evenly and is independent of stratigraphy structure and has very economic development potential.
There are more than 300 wells producing from Bakken formation with the nearest production about 10 kilometers away to the southeast of Long Fortune’s interests at Moosomin. The average daily production is in the range of 30 – 100 barrels per well.
All four of Long Fortune’s wells have been drilled through the Bakken formation showing large net pay and a significant natural gas indicator. Brown oil staining can be seen on the drilling cut from the interval 690 metres KB to 700 metres KB in the well Long Fortune Moosomin 101/10-14-14-30W1/0. Further details on the geology will be provided in the confidential virtual data room for parties that execute a confidentially agreement.
The following cross-section compares the 101/10-14-14-30W1/0 well to the well CPEC Red Jacket 41/12-03-15-31W1/0 well, which has cumulative oil production of over 70,000 barrels. Both wells have similar porosity and resistivity logs. The producing zone in Long Fortune’s 101/10-14 well is about 10 metres higher than that of the 41/12-03 well. Long Fortune believes this indicates that the performance of well 101/10-14 will be better than the 41/12-03 well.
The Company has an interest in the Fleming North 3D seismic data relating to the Moosomin property.
The Company has a 100% working interest in a water disposal well at 121/15-14-014-30W1/02.
Long Fortune has a 30-day evergreen marketing agreement in place with Kingston Marketing Limited. Oil is sold at the Kingston Cromer Trucking Terminal from the 15-14-014-30W1 delivery point.
Long Fortune does not have a third-party reserve evaluation of the Moosomin property.
As of August 28, 2022, Long Fortune’s net deemed asset value for the Moosomin property was ($24,656) (deemed assets of $288,504 and deemed liabilities of $313,160), with an LMR ratio of 0.92.
Moosomin Well List
Click here to download complete well list in Excel.
PROCESS & TIMELINESayer Energy Advisors is accepting cash offers to acquire the Property until 12:00 pm on Thursday November 17, 2022.
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday November 17, 2022.
NOTE REGARDING A SAYER PROCESS
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.
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 (firstname.lastname@example.org) or fax (403.266.4467).
Included in the confidential information is the following: summary land information, most recent net operations summary, LMR information and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Property please contact Ben Rye, Tom Pavic or Grazina Palmer at 403.266.6133.