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Grizzly Resources Ltd. 2016 Pembina Nisku Oil Property Offering

Grizzly Pembina_Property Location Map.jpg

Grizzly Resources Ltd. (“Grizzly”) has retained CB Securities Inc. (“CB Securities”) as its exclusive advisor for the sale of its Pembina Nisku oil property (the “Offering”).  This is an invitation to submit a Non-Binding Bid by December 8, 2016.

Opportunity Summary

  • Original oil-in-place is 8.2 MMBbls plus a significant gas cap
    o    Well-delineated Nisku pool defined by existing wells and 3-D seismic
    o    High porosity (>10%), high permeability (800 mD), high productivity
    o    Produce oil under waterflood until ~95% watercut, then blow down the gas cap
  • Recovery factors forecast to range from 35% to 55% (per Sproule YE 2015)
    o    Oil reserves assigned at 35% Proved (1P) and 45% Proved plus Probable (2P)
    o    Cumulative recovery of Sproule estimated OOIP is only 6%
    o    Most analogous Nisku pools in the area have recovery factors  in excess of 45%
    o    Some Nisku pools in the area under tertiary miscible flood (after completion of a secondary waterflood) have ultimate recovery factors exceeding 75%
  • Grizzly has a 46.875% operated working interest in 2 producing wells, 1 water injection well, 1 potential water injector well, and associated pad facilities
  • Grizzly is the operator of record and has a contract with partner Sinopec Daylight Energy to operate the property and facility
  • Gross production has recently averaged ~1,500 BOE/day (net 703 BOE/day)
    o    1,220 Bbls/day light oil, 1,270 Mcf/day raw gas (838 Mcf/day sales gas), and 44 Bbls/day NGL
  • Major upsides for this pool are achieving a higher ultimate secondary waterflood recovery factor, and implementation of a tertiary miscible flood

An attachment (link below) provides figures showing the current Nisku development of Grizzly’s Nisku L2L pool and other Nisku pools in the area, a production history plot for the 2 wells producing from the Nisku L2L pool, the Nisku L2L net pay map, and historical actual and Sproule forecast reserves, production, and cash flows for the property. 

Please click link above to see attachment

Additional detailed information on the property is provided in the Non-Confidential Offering Circular.  Execution of a Confidentiality Agreement will allow potential purchasers to gain access to the Virtual Data Room.  Please contact info@cbsecurities.com to receive either document.


Offering Procedure

Each interested party is asked to submit a Non-Binding Bid by noon on Thursday, December 8th, 2016 to the attention of CB Securities.  From the Non-Binding Bids received Grizzly will identify the parties with whom to work toward concluding a transaction.

It is Grizzly's intention that a binding purchase and sale agreement be executed with the successful purchaser prior to Christmas holidays. Closing is expected to occur in January 2017.

Grizzly 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 its own investigation and due diligence to satisfy itself as to all matters relating to this Offering.  Only those representations or warranties expressly agreed to in an executed Purchase and Sale Agreement between Grizzly and the successful purchaser shall be binding on Grizzly.

Grizzly 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.  Grizzly also reserves the right to accept or reject any or all offers at its sole discretion for any reason whatsoever.

Prospective purchasers wishing to participate in this Offering are requested to direct their inquiries to Darryl Derouin at (403) 781-7041 or email at info@cbsecurities.com.