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Success Energy Ltd. Light Oil Property Offering

Success Energy Ltd. (“Success”) has retained CB Securities Inc. (“CB Securities”) as its exclusive advisor for the sale of its Inga light oil property and its Meekwap light oil property.  This is an invitation to submit a Non-Binding Bid by December 14, 2016.

Inga Oil Property Summary

  • 90% operated working interest in a very long life well producing 9 Bbls/day of 38° API oil
  • Annual net operating income is ~$49k/year based on $60/Bbl light oil price
  • Annual income can be increased by $45k/year with the buyout of the rented Vapour Tight Unit for $75k
  • 16-19 interest well is in an end lobe of a very large waterflooded Inga pool
  • 2 undrilled spacing units on interest lands for future development option
  • Well optimization including re-perforation after >35 years, a small fracture treatment, or replacement of the 10 year old pump and rod string should be considered

Meekwap Oil Property Summary

  • Restoration of the last producing rate of 35 Bbls/day of net light oil anticipated by December 2016
    o    N7 Energy recently purchased Penn West’s interests in the Meekwap Nisku D-2A property wells and facility, and is in the process of reactivating this property that was shut-in April 2015 due to low oil prices
  • Annual net operating income of ~$322k/year based on $60/Bbl light oil price and last shut-in oil rate
  • 100% working interest well is the highest structurally in the waterflooded Nisku oil pool
  • Future optimization upside includes pump enlargement based on success in offsetting producers
    o    Last production rate was 35 Bbls/day with fluid 44 joints above the top of the pump

The attachment below provides the pool outlines and locations of producing interest wells within the large pools and production history of the of the 2 high working interest wells. 

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 Wednesday, December 14th, 2016 to the attention of CB Securities.  From the Non-Binding Bids received Success will identify the parties with whom to work toward concluding a transaction.

Success 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 Success and the successful purchaser shall be binding on Success.

Success 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.  Success 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.