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Current Offerings   /   New North Resources Ltd. & OILPLUSWATER Inc.



New North Resources Ltd. & OILPLUSWATER Inc.

Property Divestiture
Bid Deadline: December 8, 2022
12:00 PM
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OVERVIEW

New North Resources Ltd. and OILPLUSWATER Inc. (collectively the “Companies”) have engaged Sayer Energy Advisors to assist the Companies with the sale of their 100% operated oil and natural gas working interest property located in the Grand Forks area of southern Alberta (the “Property”).
 
Overview Map Showing the Location of the Divestiture Property

GRAND FORKS

Township 11, Range 14 W4

At Grand Forks, the Companies’ hold a 100% operated working interest in P&NG rights from the surface to the base of the Sawtooth Formation in 2.75 sections of land.
 
The stable medium (25.4° API) oil production from the Property is from the Sawtooth PPP, Sawtooth Y2Y and Sawtooth U2U pools.
 
Daily production from Grand Forks for the month of September 2022 was approximately 46 barrels of medium oil per day.
 
Monthly operating income from Grand Forks for the eight months ended August 2022 totalled $600,000, or approximately $900,000 on an annualized basis.

 

Grand Forks, Alberta
Gross Production Group Plot of the Companies' Sawtooth Oil Wells


Upside

The Companies have two vertical drilling locations booked at 02-34-011-14W4 and 09-27-011-14W4 which are planned for 2023 and would be drilled to a measured depth of 930 metres.
 
The 02-34-011-14W4 proposed location is offsetting the 00/02-34 and 02/02-24 wells. The location is supported by a low recovery factor to date in LSD 02-24-011-14W4.
 
The 09-27-011-14W4 proposed location is offsetting the 16-26 wells. The low recovery factor to date in LSD 16-26-011-14W4 supports an additional location.


Grand Forks Seismic

The Company does not have an interest in any seismic data at Grand Forks.

Grand Forks Facilities

The Property includes a 100% operated working interest in a multi-well oil battery located at 15-26-011-14W4 and two water disposal wells located at 100/15-26-011-14W4/00 and 100/08-27-011-14W4/00.

Grand Forks Marketing

The Companies have a 30-day evergreen marketing agreement in place with Macquarie Oil Services Canada. Oil is trucked from the battery at 15-26-011-14W4 and sold at IPL Milk River TM852.

Grand Forks Reserves

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Property (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 Property contained remaining proved plus probable reserves of 224,000 barrels of oil, with an estimated net present value of $3.3 million using forecast pricing at a 10% discount.


 


Grand Forks LMR

As of October 1, 2022, the net deemed asset value for the Property was $94,028 (deemed assets of $2.1 million and deemed liabilities of $2.0 million), with an LMR ratio of 1.05.

 

Grand Forks Well List

Click here to download the complete well list in Excel.

PROCESS & TIMELINE

Sayer Energy Advisors is accepting cash offers to acquire the Property until 12:00 pm on Thursday December 8, 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.

Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday December 8, 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 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: summary land information, most recent net operations summary, the Trimble Report, LMR information 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.

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