Predator Oil Ltd.: Non-Core Property Divestiture – Working Interests & Royalty Interests


Sayer Energy Advisors has been engaged to assist Predator Oil Ltd. (“Predator” or the “Company”) with the sale of its non-core oil and natural gas working interest properties located in various areas of Alberta, and its royalty interests located in Saskatchewan and Alberta (the “Properties”).

Total production net to Predator from the Properties has averaged approximately 51 boe/d, consisting of 38 barrels of oil and natural gas liquids per day and 78 Mcf/d of natural gas.  Production is primarily from the Mikwan-Huxley and Deer Mountain/Swan Hills properties.

Net operating income from the Properties is forecasted to average approximately $200,000 in 2018, with approximately $38,000 of the net operating income coming from Predator’s royalty interests.

GLJ Petroleum Consultants Ltd. (“GLJ”) prepared an independent reserves evaluation of Predator’s properties as part of the Company’s year-end reporting (the “GLJ Report”).  The GLJ Report is effective February 28, 2017 using GLJ’s January 1, 2017 forecast pricing.

GLJ estimates that as of February 28, 2017, the Properties contained remaining proved plus probable reserves of 958,000 barrels of oil and natural gas liquids and 3.6 Bcf of natural gas (1.6 million boe), with an estimated net present value of $13.3 million using forecast pricing at a 10% discount.

Summary information relating to this divestiture is attached to this correspondence.  More specific information is available at www.sayeradvisors.com.  A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).

Cash offers to acquire the Properties will be accepted until 12:00 pm on Thursday, May 10, 2018 

For further information please feel free to contact Ben Rye, Tom Pavic, Ryan Ferguson Young, Mark Zalucky Grazina Palmer or myself at 403.266.6133.

Alan Tambosso

Alan W. Tambosso, P.Eng. P.Geol.
President

SAYER ENERGY ADVISORS
1620, 540 – 5th Avenue SW
Calgary, Alberta T2P 0M2
P: 403.266.6133 C: 403.650.8061 F: 403.266.4467
www.sayeradvisors.com

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