Under Review / Asta Energy Ltd.
Asta Energy Ltd.Property Divestiture
Bid Deadline: June 15, 2023
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The Property consists of a 100% working interest in approximately 15 LSDs over two sections of land which was leased for petroleum and natural gas rights in the Mannville Group.
The Property is prospective for thermal oil development in the Waseca Formation of the Upper Mannville Group. Asta believes there is approximately 30 million barrels of thermal exploitable oil in place at Kerrobert. There is no current production and no liability associated with the Property.
Further details on the Property are available in the virtual data room for parties that execute a confidentiality agreement.
The Property consists of three leases on 15 LSDs of land in Sections 26 & 27-032-23W3 with a 100% working interest. The leases are in primary term until June 2024 and September 2028.
The Property is 100% Freehold land. The lands in Section 26 have a 5% lessor royalty for the first six years of production for each enhanced oil recovery well, followed by 13% through to abandonment. The lands in Section 27 have a 5% lessor royalty for the first five years of production for each Cyclic Steam Stimulation (“CSS”) / Steam Assisted Gravity Drainage (“SAGD”) well, followed by 17.5% for the remaining life of the well.
There is no production from the Property. The Property is prospective for enhanced oil recovery through thermal oil development in the Waseca Formation of the Upper Mannville Group.
Raw water is available to be sourced from multiple formations in the area.
Asta has its proposed central facility location and first pad surface lease secured.
There are active thermal projects in the region including the adjacent Kerrobert West project of Baytex Energy Corp. which is situated in the same Waseca channel as the Property. The geological and reservoir conditions of the Property are comparable to several producing thermal assets from the Lloydminster area such as Dee Valley, Edam, Meota, Pikes Peak and Vawn.
Asta has identified net pay in the Waseca Formation of eight metres and above in a continuous oil zone based on trade 3D seismic and multiple well controls on its lands. The following map shows the general net oil pay thickness of the Waseca reservoir associated with the Property.
Additional mapping, seismic interpretations and a technical presentation will be made available to parties that execute a confidentiality agreement.
Asta has identified the high-quality of the Waseca reservoir at Kerrobert by the following parameters. Average porosity of 32%, 85% oil saturation, average permeability of 6 Darcies. The oil viscosity is approximately 8,250 cp at a reservoir temperature of approximately 30°C.
The following well logs from the well Beaumont Kerrobert D8 141/08-27-032-23W3 show the Waseca reservoir at Kerrobert.
The following chart shows the projected full production life of the project spanning over more than 20 years with estimated production maintained between approximately 2,000-2,800 barrels of oil per day.
Further details of the Company’s economic evaluation of the SAGD project are available in the virtual data room for parties that execute a confidentiality agreement.
Chapman Petroleum Engineering Ltd. (“Chapman”) prepared an independent reserves evaluation of the Property (the “Chapman Report”). The Chapman Report is effective April 30, 2022 using Chapman’s May 1, 2022 forecast pricing.
Chapman estimates that, as of April 30, 2022, the Kerrobert property contained remaining proved plus probable reserves of 20.5 million barrels of heavy oil with an estimated net present value of $338.4 million using forecast pricing at a 10% discount.
The Company does not have ownership in any wells associated with the Property.
PROCESS & TIMELINESayer Energy Advisors is accepting cash offers relating to acquire the Property until 12:00 pm on Thursday June 15, 2023.
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 June 15, 2023.
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, the Chapman Report and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Property please contact Ben Rye, Tom Pavic or Sydney Birkett at 403.266.6133.