Offering Details
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Under Review / PwC - Goldenkey Oil Inc.
PwC - Goldenkey Oil Inc.
Bankruptcy SaleBid Deadline: June 1, 2023
12:00 PM
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OVERVIEW
On January 29, 2023, PricewaterhouseCoopers Inc., LIT was appointed as trustee (the “Proposal Trustee”) of Goldenkey Oil Inc. pursuant to the Bankruptcy and Insolvency Act, under which it filed a Notice of Intention to Make a Proposal. Goldenkey Oil Inc. and its joint venture partners (collectively “Goldenkey” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of all of Goldenkey’s oil and natural gas interests located in the Willesden Green, Belloy and Nipisi areas, as well as minor interests in the Matziwin, Manir and Smoky areas of Alberta (the “Properties”).The Proposal Trustee has also provided a Sale and Investment Solicitation Process document (the “SISP”) outlining the details of the bankruptcy sale. Click here for a copy of the SISP.
Overview Map Showing Location of Goldenkey’s Properties
Production Overview
Average daily production net to Goldenkey from the Properties for the three months ended February 28, 2023 was approximately 62 barrels of oil per day and 184 Mcf/d of natural gas (92 boe/d) as outlined below.
Operating income net to Goldenkey from the Properties for three months ended February 28, 2023 averaged approximately $88,900 per month, or $1.1 million on an annualized basis.
Gross Production Group Plot of Goldenkey’s Oil & Natural Gas Wells
Reserves Overview
The Company does not have a current reserve evaluation for the Properties.
LMR Overview
As of March 4, 2023, Goldenkey’s net deemed asset value for the Properties was $1.7 million (deemed assets of $4.5 million and deemed liabilities of $2.7 million), with an LMR ratio of 1.64.
WILLESDEN GREEN
PLEASE NOTE THAT GOLDENKEY'S INTERESTS IN THE W ½ OF SECTION 10 TWP 40 RGE 4W5 HAVE EXPIRED. THE FOLLOWING PLAT REFLECTS GOLDENKEY’S CURRENT INTERESTS AT WILLESDEN GREEN.Township 40-42 Range 1-4 W5
At Willesden Green, the Company holds a 100% operated working interest in two sections of land. Current production at Willesden Green is from the wells GDKO 15-5 HZ WillGr 100/15-08-040-04W5/00, and GDKO WillGr 100/14-09-040-04W5/02. Production consists of oil from the Viking Formation.
At Gilby, Goldenkey holds a 100% working interest in 1.5 sections of land with several suspended Viking oil wells.
Average daily sales production net to Goldenkey from Willesden Green for the three months ended February 28, 2023 was approximately 184 Mcf/d of natural gas and 23 barrels of oil per day (53 boe/d).
Operating income net to Goldenkey from Willesden Green for the three months ended February 28, 2023 averaged approximately $54,100 per month, or approximately $650,000 on an annualized basis.
Willesden Green, Alberta
Gross Production Group Plot of Goldenkey’s Oil & Natural Gas Wells
At Willesden Green, the Company holds a 100% working interest in the following facilities.
Willesden Green LMR
As of March 4, 2023, Goldenkey’s net deemed asset value for the Willesden Green property was $1.1 million (deemed assets of $1.8 million and deemed liabilities of $754,674), with an LMR ratio of 2.43.
Willesden Green Marketing
At Willesden Green, crude oil is trucked to a Gibson Energy Infrastructure Partnership facility at Rimbey where it is sold through Gibson on an evergreen contract.
Willesden Green Reserves
The Company does not have a third-party reserve evaluation of the Property.
Willesden Green Well List
Click here to download the complete well list in Excel.
NIPISI
PLEASE NOTE THAT CERTAIN OF GOLDENKEY’S LANDS AT NIPISI WERE SUBJECT TO A CONTINUATION WHICH WAS NOT GRANTED. THE FOLLOWING PLAT REFLECTS GOLDENKEY’S CURRENT INTERESTS AT NIPISI.Township 82 Range 10-11 W5
At Nipisi, the Company holds a 100% operated working interest in a P&NG Northern licence on one section of land. The mineral rights are P&NG in the Keg River Sandstone.
Current production at Nipisi is from the well GDKO 2-15D Nipisi 100/01-15-082-11W5/00. Production consists of oil from the Keg River Formation.
Average daily sales production net to Goldenkey from Nipisi for the three months ended February 28, 2023 was approximately 31 barrels of oil per day.
Operating income net to Goldenkey from Nipisi for the three months ended February 28, 2023 averaged approximately $24,500 per month, or approximately $295,000 on an annualized basis.
Nipisi, Alberta
Gross Production Group Plot of Goldenkey’s Oil & Natural Gas Wells
Current oil production at Nipisi is from the Keg River Formation. The following map shows gross sand thickness of the Keg River sands in the general Nipisi area.
Nipisi Facilities
At Nipisi, the Company holds a 100% working interest in the following facility.
As of March 4, 2023, Goldenkey’s net deemed asset value for the Nipisi property was $2.0 million (deemed assets of $2.2 million and deemed liabilities of $215,662), with an LMR ratio of 10.21.
Nipisi Marketing
At Nipisi, crude oil is trucked to the Summerland Energy Inc. Nipisi 04-08-079-08W5 battery where it is sold through Tidal Energy Marketing Inc. on an evergreen contract.
Nipisi Reserves
The Company does not have a third-party reserve evaluation on the Property.
Nipisi Well List
Click here to download the complete well list in Excel.
BELLOY
Township 78 Range 25-26 W5At Belloy, the Company holds a 100% operated working interest in two sections of land. Current production at Belloy is from the well GDKO 1-15 HZ Belloy 100/03-15-078-26W5/00. Production consists of oil from the Wabamun Formation.
At Eaglesham North, Goldenkey holds a 100% working interest in one half-section of land with a suspended Wabamun oil well.
Average daily sales production net to Goldenkey from Belloy for the three months ended February 28, 2023 was approximately eight barrels of oil per day.
Operating income net to Goldenkey from Belloy for the three months ended February 28, 2023 averaged approximately $10,300 per month, or approximately $125,000 on an annualized basis.
Belloy, Alberta
Gross Production Group Plot of Goldenkey’s Oil & Natural Gas Wells
Gross Production Group Plot of Goldenkey’s Oil & Natural Gas Wells
Belloy Facilities
At Belloy, the Company holds a 100% working interest in the following facilities.
Belloy LMR
As of March 4, 2023, Goldenkey’s net deemed asset value for the Belloy property was ($1.0 million) (deemed assets of $425,301 and deemed liabilities of $1.4 million), with an LMR ratio of 0.30.
Belloy Marketing
At Belloy, crude oil is trucked to the Canadian Natural Resources Limited 05-34-078-25W5 battery where it is sold through Trafigura Canada on an evergreen contract.
Belloy Reserves
The Company does not have a third-party reserve evaluation of the Property.
Belloy Well List
Click here to download the complete well list in Excel.
ADDITIONAL MINORS
Additional Minors PropertiesIn addition, Goldenkey has a 100% working interest in two suspended wells located in the Matziwin and Smoky areas and two abandoned wells in the Manir area of Alberta.
Additional Minors LMR
As of March 4, 2023, Goldenkey’s net deemed asset value for the Additional Minors properties was ($314,534) (deemed assets of $0 and deemed liabilities of $314,534), with an LMR ratio of 0.00.
Additional Minors 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 Properties until 12:00 pm on Thursday, June 1, 2023.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
Sayer Energy Advisors is accepting offers as outlined in the SISP
from interested parties until noon on Thursday June 1, 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 lease operations statement, LMR information and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Properties please contact Tom Pavic, Ben Rye or Sydney Birkett at 403.266.6133.