Bid Date: August 2, 2017
Glencoe Resources Ltd., in Receivership Property Offering
Hardie & Kelly Inc. (“Hardie & Kelly”), in its capacity as Court appointed Receiver of Glencoe Resources Ltd. (“Glencoe”), has retained CB Securities Inc. (“CB Securities”) as its advisor for the sale of the oil and gas properties (the “Properties”) held by Glencoe.
All of Glencoe’s properties were evaluated by Sproule Associates Limited effective April 30, 2017.
Chigwell Viking Units
- 230 Bbls/day currently curtailed light oil production
- Significant identified phased Viking development projects
- 3 separate bite sized projects at $7.3, $9.0, and $15.4 million of net capital
- 2.0 to 2.8 MMBbls of net reserves addition at average of $11.65/Bbl
- 2,200 to 3,050 Bbls/day of net oil production addition at average of $10,400/Bbl/day
Glencoe holds non-operated working interests in 6 Viking units that range from developed, to essentially undeveloped under miscible CO2 flood. Production from the Units is currently curtailed due to CO2 injection constraints. Injection capacity was impaired by unsuccessful historical attempts to implement a water alternating gas (“WAG”) injection scheme Oil production from the Units is currently limited to ~485 (230 net) Bbls/day with many wells capable of significant oil production contribution shut-in or being cycled on and off without the current ability to reinject the CO2 produced with the light oil.
In its evaluation, Sproule undertook extensive analysis of approaches to enhance the recovery of the significant oil-in-place and optimize the CO2 miscible floods. To that end, 4 Units have been proposed for upgrades and can be staged as 3 separate projects. The gross (net) results are shown for the Proved Undeveloped (1P) and Proved plus Probable Undeveloped (2P) reserve cases. Capital expenditures are estimated for the complete project and include building or upgrading oil batteries and installing additional oil and CO2 pipelines.
Chigwell Non-Unit (Mannville, CBM, Duvernay)
- 258 BOE/day of current net production, consisting of 1.4 MMcf/day of sales gas, 13 Bbls/day of oil, and 12 Bbls/day of natural gas liquids
- $0.9 million forecast 2017 net operating income from existing wells
- 168 (66 net) sections of land at varying operated and non-operated working interests
- Excellent multi-zone, under-developed Mannville oil and liquids rich gas with horizontal development upside
o Glauconitic potential with EOR: 12 MMBbls and 2,900 Bbls/day of oil
o Upper Mannville gas potential: 24 MMcfe and 17.4 MMcfe/day of liquids rich gas
o CBM potential: 15 Bcf and 5 MMcf/day of gas
The Chigwell Non-Unit package contains 91 wells producing 44.1 (13.2 net) Bbls/day of oil, 5.83 (1.80 net raw) MMcf/day of raw gas subject to a 22% average surface loss, and 39.0 (12.0 net) Bbls/day of natural gas liquids. There is significant multi-zone oil and liquids rich Mannville horizontal development upside in the Glauconitic, Falher, Colony (Notikewin), Ellerslie (Basal Quartz), and inexpensive high quality Coal Bed Methane development. The property also includes Glencoe’s high interest gathering and processing facilities into which the wells in this package are gathered. There is excess processing capacity for additional production and third party processing income.
- There are several other minor properties in which Glencoe holds working interests.
Please click link above to see attachment for additional information regarding this offering.
Additional non-confidential information on the property is provided in the Non-Confidential Offering Circular. Please click on the link above to view the Offering Circular.
The Properties will be sold on an as is, where is basis subject to approval of the Court of Queen’s Bench of Alberta and will be sold free and clear of all encumbrances, to the extent permitted by law and the Court.
The Receiver and CB Securities make no representation or warranty as to the accuracy or completeness of the information provided in connection with this Offering. Each potential purchaser should rely on their own investigation and due diligence to satisfy itself as to all matters relating to this Offering. No representations or warranties will be provided by the Receiver in a purchase and sale agreement.
The Receiver and CB Securities reserve the right to modify the timing, procedures, and terms and conditions of this Offering, or to terminate this Offering at any time. The Receiver also reserves the right to accept or reject any or all offers at its sole discretion for any reason whatsoever.
Non-Binding Bids received by CB Securities prior to noon on August 2, 2017, the formal Non-Binding Bid Date, shall be kept in strict confidence by CB Securities until such time.