Offering Details

Avalon Energy Ltd.
Property Divestiture
Bid Deadline: 10/12/2017 12:00 PM

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OVERVIEW

Avalon Energy Ltd. (“Avalon” or the “Company”) has engaged Sayer Energy Advisors (“Sayer”) to assist it with the sale of the Company’s Alberta oil and natural gas assets (the “Properties”).  Avalon is a private company with a 28 year history of operating oil and natural gas properties in western Canada.  The Company has recently decided to focus its activities in Saskatchewan, and as a result, its Alberta properties are being sold at this time.

The Properties, which are all Avalon-operated oil properties, are located in the Murray Lake, Knappen, Long Coulee, Pageant and Majorville areas of southern Alberta.

The Company’s total production has recently averaged approximately 92 barrels of oil equivalent per day (83 barrels of oil per day and 55 Mcf/d of natural gas).

Offers to acquire individual properties will be considered.

Overview Map Showing the Location of Avalon's Divestiture Properties

Operations Overview

Avalon is a highly focused oil company, with most of its production and reserves value coming from its operated oil property in the Murray Lake area of southern Alberta.  Additional production comes from Avalon-operated properties at Knappen, Long Coulee, Pageant and Majorville.

Reserves

McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of Avalon’s Murray Lake property specifically for this divestiture (the “McDaniel Report”).  The McDaniel Report is effective July 1, 2017, using McDaniel’s July 1, 2017 forecast pricing.

McDaniel estimates that as of July 1, 2017 the Murray Lake property contained remaining proved plus probable reserves of 219,200 barrels of oil, with an estimated net present value of approximately $4.0 million using forecast pricing at a 10% discount.

The rest of the Properties were not evaluated by McDaniel.


Production

The Company’s total production from the Properties has recently averaged approximately 92 barrels of oil equivalent per day (83 barrels of oil per day and 55 Mcf/d of natural gas).

LLR as of August 5, 2017

The LLR for each of the Properties as of August 5, 2017 is summarized below.

Summary of LLR by Property