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Current Offerings   /   Broadview Energy Ltd.



Broadview Energy Ltd.

Property Divestiture
Bid Deadline: February 16, 2023
12:00 PM
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OVERVIEW

Broadview Energy Ltd. (“Broadview” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its non-core oil and natural gas interests located in the Marwayne area of Alberta (the “Property”).

The Property consists of multi-zone, heavy oil production with a low recovery factor to date and with approximately 48.4 million barrels of original oil in place in both the GP and Sparky formations.

 
Overview Map Showing the Location of the Divestiture Property

MARWAYNE

Township 53, Range 1 W4

The Company has a 100% working interest in an oil sands lease on Section 18-053-01W4 which is prospective for oil in the Sparky and GP formations. The Property has all season access with a lot of surrounding infrastructure and good access to market.
 
Broadview has a 100% working interest in two suspended vertical wells at Marwayne. The 06/11-18-053-01W4/00 well and the 05/16-18-053-01W4/00 well. Both wells have a wellhead and a bermed tank.
 
The 05/16-18 well was perf’d in the Upper Sparky with total production of approximately 13,000 barrels of oil in the first year and has essentially paid out due to high netbacks. The well has struggled with a high gas to oil ratio and would benefit from operational improvement.
 
The 06/11-18 was perf’d in the GP but inflow was negligible. Broadview believes it is a possible candidate for a foam squeeze or other treatment, as it is geologically identical to offsets that also started at a low-rate of production and have inclined for years. Lost circulation while drilling at 11-18 may have impeded initial CHOPS initiation.
 
The Company believes that the Sparky and GP formations on its lands may be accessed using a different operational approach based on horizontal drilling.
 
Additionally, the Company has a gross overriding royalty interest (“GORR”) of 7.5% in the wells 05/07-18-053-01W4/00, 05/07-18-053-01W4/02 and 06/07-18-053-01W4/00 operated by Acceleware Ltd. which are part of a farm-out agreement. Details on production and Broadview’s royalty income from the wells will be made available in the virtual data room for parties that execute a confidentiality agreement.

 

 
Acceleware Joint Venture

Broadview entered into a joint venture agreement with Acceleware in May 2020, to conduct a commercial trial of Acceleware’s RF XL heating technology. As part of the joint venture, Broadview entered into a consortium to fund the project. Broadview participated with a contribution in kind by providing the Property. Acceleware farmed-in on the Property and drilled test wells in the Mannville Group in Section 18-053-01W4 in late 2021. The farm-in included the first test well (800 metre by 200 metre) and an election for another 800 metre by 200 metre test site.
 
Acceleware was developing its enhanced oil recovery technology which uses radio frequency energy rather than steam to heat up and mobilize heavy oil and oil sands reservoirs.  Acceleware's RF XL technology effectively acts as an “inside-out” microwave where the heating wells propagate electromagnetic energy into the target reservoir. The electromagnetic energy heats up the target reservoir’s connate water into an in-situ steam chamber which then mobilizes the heavy crude oil for production.

 

 
Acceleware's RF XL technology injects electricity into the ground to create steam downhole versus creating and injecting steam at surface. The result is major savings on capital expenditures and also tangible environmental benefits with reduction of surface disturbance and greenhouse gas emissions and elimination of water use.
 

 
Acceleware used the Property to test its recovery technology. As a result, Broadview earned the rights to information and use of the Acceleware’s technology and has the ability to sell the rights on a one-time basis and is willing to sell these rights, the information and the GORR as part of a transaction. Acceleware drilled its first test site using the technology and Broadview owns a 7.5% GORR on oil production. Details on production and Broadview’s royalty income from the wells will be made available in the virtual data room for parties that execute a confidentiality agreement.

Broadview, as consortium member and trial host, is entitled to the following:
  • $4.0 million in discounts for future Acceleware equipment purchased at a 20% discount following which most favoured Company pricing for 10 years thereafter; and
  • Rights to use Acceleware equipment on a licence/royalty free basis on any lands currently held by Broadview and any lands that Broadview might buy in the future.
Broadview is entitled to the following input data:
  • Pre-FEED engineering reports, drawings, regulatory application information, cost estimates, design basis memorandums, PFDs, P&IDs, isometrics, process models;
  • EM core flood results;
  • Pilot test simulations including modeling data files, inputs, results and conclusions;
  • Report on GE SiC Converter Module design, test results, QA/QC testing data, learnings and future recommendations; and
  • Drilling completion design documentation, third party qualification test plans and results for non-standard equipment, drilling plans, completion plans, RF Antenna design and drawings, torque and drag design estimates, collision avoidance drawings, safety plans, stick diagrams and detailed cost estimates.
Broadview is entitled to the following output data:
  • Test site construction reports, cost estimates, deployment techniques, site commissioning reports, daily drilling reports, daily completion reports;
  • Construction and commissioning report, invitation to witness initial energization of system; and
  • Minimum 6-month heating test report including convertor performance, coaxial performance, heating system results and production results.
On December 20, 2022 Acceleware announced it had received an additional $900,000 in grant funding from Alberta Innovates to be used for a workover at Marwayne.

Marwayne Geology

The Company has both Sparky and GP reservoirs on its land at Marwayne as shown in the following well log.

 
PVR 5B Frog LK 02/05-18-053-01W4/02
Sparky & GP Type Log


 
Permeability ranges from 3-8 Darcies. Viscosity of the 12° API oil is approximately 25,000 cP.

The Property is surrounded by offsetting Sparky and GP development by Cenovus Energy Inc. The Cenovus pools are shown on the following map.

 

 
The Broadview wells are higher structurally, with superior resistivity, and are similar thickness. Otherwise, there is no geological difference between the Cenovus lands and the Property, however; there are operational differences. Cenovus used 7” casing, vertical wells, single-zone production, with good drawdown which produced out to high water cuts with high total fluid production.
 
Historic development used slant wells with a small casing size, and commingled multiple pay sands which was a difficult operational setup for high sand-cut wells. Additionally, most wells were permanently shut-in at good oil rates and cuts.

The Company believes there is 20.6 million barrels of oil originally in place in the Sparky Formation. The Sparky net pay ranges from 4-6 metres.
 
The GP is found at a depth of between 483-493 metres in the area and Broadview believes there is 27.8 million barrels of oil originally in place in the GP Formation. The GP net pay ranges from 4-6 metres.

 
Broadview 106 Frog LK 06/11-18-053-01W4/00
Type Log


 
Marwayne Seismic

The Company does not have an interest in any seismic data over its lands at Marwayne.

Marwayne Facilities

The Company has two 1,000 barrels tanks which have been drained with the access doors removed. There is currently no other equipment on the Property. All other equipment and connecting piping have been removed.
 
The 11-18 well has only the wellhead. The 16-18 well has a Weatherford top drive. The wellheads have a surrounding teck fence.

 







 
Marwayne Reserves

The Company does not have a third-party reserve report for the Property. McDaniel & Associates Consultants Ltd. previously mapped the net pay of the Sparky and GP prior to the Acceleware farm-in.

Marwayne LMR

As of January 7, 2023, Broadview’s net deemed asset value for the Property was ($140,660) (deemed assets of $0 and deemed liabilities of $140,660), with an LMR ratio of 0.00.

 

 
Marwayne 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 February 16, 2023. 


 
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 February 16, 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 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, farm-in agreements, Acceleware technical 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.

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