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Current Offerings   /   Alvarez & Marsal Canada Inc. - Robus Resources Inc.



Alvarez & Marsal Canada Inc. - Robus Resources Inc.

Receivership Sale
Bid Deadline: February 9, 2023
12:00 PM
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OVERVIEW

On April 12, 2022, Alvarez & Marsal Canada Inc. was appointed as the receiver and manager (the “Receiver”) of the assets of Robus Resources Inc. (“Robus” or the “Company”) pursuant to an Order of the Court of Queen’s Bench of Alberta (as at then was). The Receiver has engaged Sayer Energy Advisors to assist it with a sale of all of Robus’ oil and natural gas interests located in Alberta (the “Property”). The Receiver has also provided a sale and investment solicitation process (“SISP”) outlining the details of the receivership sale.  The Court of King’s Bench of Alberta approved the SISP on December 14, 2022, along with granting approval and reverse vesting order to complete a stalking horse credit bid (the “Stalking Horse Transaction”) to sell the Property of Robus to Robus Equity Acquisition Corporation for approximately USD$9.1 million.  The purpose of the SISP is to determine whether a higher and better offer than the Stalking Horse Transaction may be obtained.
 
Further details regarding the marketing process, the Stalking Horse Transaction and a copy of the SISP is found here.
 
The Property is located in the Joarcam area of Alberta and consists of primarily non-operated unit interests. Robus does operate and hold a 100% working interest in two wells located at 102/05-27-047-20W4/00 and 102/09-27-047-20W4/00.
 
Average daily production net to Robus from the Property for the month of October 2022 was approximately 100 barrels of oil and natural gas liquids per day and 226 Mcf/d of natural gas (140 boe/d).
 
Operating income net to Robus from the Property for the twelve months ended October 2022 was approximately $203,000.

 
Overview Map Showing Location of Robus' Property

JOARCAM

Township 45-51, Range 20-22 W4

In the Joarcam area, the Company holds various working interests in the, Joarcam Viking Unit No. 2, Joarcam Viking Unit No.3 and Joarcam Viking Gas Cap Unit operated by Enerplus Corporation as well as working interests in several non-unit wells. Robus also holds a 100% working interest in two operated non-unit wells located at 102/05-27-047-20W4/00 and 102/09-27-047-20W4/00.
 
Average daily production net to the Company from the Property for the month of October 2022 was approximately 100 barrels of oil and natural gas liquids per day and 226 Mcf/d of natural gas (140 boe/d).
 
The Company’s net operating income for the twelve months ended October 2022 was approximately $203,000.

 


Joarcam, Alberta
Gross Production Group Plot of Robus' Oil & Natural Gas Wells


 
Joarcam Facilities

Robus has a working interest in the following three main facilities that are currently in operation at Joarcam: the battery at 04-34-047-20W4, the compressor station at 11-13-050-22W4 and the natural gas plant and battery at 06-29-049-21W4.

The Company does not operate any facilities at Joarcam. Robus also has an interest in the facilities associated with the Units, including the Joarcam 5-23-49-21W4 Gas Facility, the Joarcam 11-31-049-21W4 satellite and compressor station and several multi-well oil batteries.

A detailed list of Robus’ working interest facilities is available in the virtual data room for parties that execute a confidentiality agreement.


LMR Summary

Robus’ deemed liabilities for its two operated wells at Joarcam totaled $155,410. Full details of the Company’s LMR will be made available in the virtual data room for parties that execute a confidentiality agreement.

Joarcam Marketing

At Joarcam, Enerplus sells crude oil through Macquarie Energy Canada Ltd. at the Secure Drayton Valley truck terminal, Gibson Edmonton truck terminal, Tervita Buck Creek CT, and TAM 04-14.
 
Natural gas liquids are sold through Gibson Energy at the Gibson Hardisty Terminal.
 
The Company is paid through JIB by Enerplus.

Joarcam Reserves

Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of the Property for this divestiture (the “Sproule Report”).  The Sproule Report is effective December 31, 2022 using Sproule’s December 31, 2022 forecast pricing. The numbers quoted below are preliminary as the Sproule Report has not been finalized.
 
Sproule estimates that, as of December 31, 2022, the Property contained remaining proved plus probable reserves of 71,000 barrels of oil and natural gas liquids and 91 MMcf of natural gas (86,000 boe), with an estimated net present value of ($5.1 million) using forecast pricing at a 10% discount.

 


 
Joarcam Well List

Click here to download the complete well list in Excel.

 

PROCESS & TIMELINE

Sayer Energy Advisors is accepting offers as outlined in the SISP to acquire the Property until 12:00 pm on Thursday February 9, 2023. 


 
Sayer Energy Advisors does not typically conduct a "second-round" bidding process; the intention is to determine whether a higher or
otherwise better offer than contemplated in the Stalking Horse Transaction may be obtained in the SISP. If a more superior offer is received

by the bid deadline as defined in the SISP, then an auction-type process will occur as outlined in the SISP.

Sayer Energy Advisors is accepting offers as outlined in the SISP from
interested parties until noon on Thursday February 9, 2023.

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: summary land information, most recent net operations summary information, the Sproule Report, LMR information and other relevant technical information.

Download Confidentiality Agreement

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

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