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Bid Date: November 7th, 2018  

Prosper Petroleum Ltd.

Prosper Petroleum Ltd. (“Prosper”) has retained CB Securities Inc. (“CB Securities”) as its exclusive advisor for the sale of Meota Lake heavy oil property. This is an invitation to submit a Non-Binding Bid for the property by noon, Wednesday, November 7th, 2018.

Highlights    

81% to 100% working interest in 3,200 contiguous acres

Large heavy oil OOIP of ~118 MMBbls on interest lands

Upside includes infill development drilling of this pool and implementation of a simple thermal project

  • 5% to 8% primary recovery factor

  • 30% to 50% cyclic thermal recovery factor for alternating of steam injection and production from the same horizontal well

  • 60% to 80% full SAGD thermal recovery factor

Location & SAGD Map.jpg

Reservoir Parameters

  • Unconsolidated Sandstone

  • 420 metres depth

  • 4 to 10 metres thick

  • 32.5% porosity

  • 88.6% oil saturation

  • 5.1 Darcies permeability

  • 10 to 11° API

  • 30,000 to 60,000 cP viscosity

  • Some individual wells rates have been >100 Bbls/day under primary depletion

Meota Lake_Colony Net Pay Isopach Map.jpg

11 additional horizontal infill locations are identified as capable of production on primary depletion

  • 29.7 MMBbls of OOIP on 640 acres of known higher quality reservoir

  • Total capital costs of ~$10 million ($8 million net)

  • Corresponding net present values discounted at 10% for each well would be $1.12 million at a 4% recovery factor and $1.69 million at a 5% recovery factor at 81% working interest

  • Primary recovery factor of 8% is possible with updated knowledge of development and production

Meota Lake_Primary Cold Depletion Development Area.jpg
Meota Lake_11-11 Production Profile.jpg

The real value is in the addition of heat to the reservoir in the form of either cyclic steam and production or 1 steam injector for each 2 producing wells

With heat enhancement, 9 additional horizontal infill locations are identified in the thickest, heaviest part of the reservoir, bringing the total number of available horizontal infill locations to 25

  • Even at 400 Bbls/day/well, a staged project of 5,000 Bbls/day (~4,500 Bbls/day net) for longer term sustained production could be reasonably expected with thermal development

  • 54.8 MMBbls of OOIP under 2.25 sections of land with known quality of reservoir

  • Resources for steam addition are nearby (high pressure gas line through property, power connection nearby, water source within 5 kilometres, established water disposal well on site)

    -16 MMBbls of recoverable oil at 30% recovery factor

    -27 MMBbls of recoverable oil at 50% recovery factor

  • Resources for steam addition are nearby (high pressure gas line through property, power connection nearby, water source within 5 kilometres, established water disposal well on site)Infrastructure and highway access nearby

  • Infrastructure and highway access nearby

  • These lands are a mix of 81% and 100% working interests

Meota Lake_Thermal Development Area.jpg

Analogy to show how these reservoirs produce with the addition of heat

  • 15 wells producing and average of 533 Bbls/day

Meota Lake_Husky Vawn Group Production Plot.jpg

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 Data Book and the Virtual Data Room.  Please contact info@cbsecurities.com to receive either document.


Offering Procedure

Interested parties are asked to submit a Non-Binding Bid by noon on Wednesday, November 7th, 2018. From the Non-Binding Bids received Prosper will identify the parties with whom to work toward concluding a transaction.

Potential purchasers that have executed the Confidentiality Agreement will be provided with access to Confidential Information in the Virtual Data Room.

It is Prosper’s intention that an industry standard Purchase and Sale Agreement with a 10% deposit be executed as soon as possible with the successful purchaser. Closing should occur before year-end 2018. 

Prosper 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. Only those representations or warranties expressly agreed to in an executed Acquisition Agreement between Prosper and the successful purchaser shall be binding on Prosper.

Prosper 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. Prosper 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.