Duvernay Land Divestiture
Bid Deadline: 2/14/2019 12:00 PM
Township 46-51, Range 26 W4 - 4 W5
Sayer Energy Advisors has been engaged to assist Blackspur Oil Corp. (“Blackspur” or the “Company”) with the sale of its prospective Duvernay oil rights located in the Pembina area of Alberta (the “Property”).
Blackspur holds working interests in 95 sections (82 net) of prospective Duvernay oil rights located in the Pembina area of Alberta. The Company holds a 100% working interest in most of the lands on the Property, holding working interests of 50% and 80% in some of the lands.
The Company sees a clear line of sight for the acquirer of the Property to enhance its land position by way of selective strategic acreage swaps, leasing of open Freehold land and the acquisition of a small number of sections of open Crown land.
With these enhancements, Blackspur sees potential for a substantial development of up to approximately 380 two mile horizontal Duvernay locations.
The Company’s existing land base has manageable near-term expiries, with 17.9 net sections expiring in 2019 (including a 15 section license that expires in October) and 5.8 net sections which expire in 2020.
Blackspur is scouting a horizontal location on the expiring license in order to prepare to hold the October 2019 expiry.
Blackspur’s Duvernay position presents a solid foothold into an early stage light oil resource play, as confirmed by recent production and Tmax data.
The Property contains 20-30 metres of over-pressured Duvernay shale reservoir within the oil window, at depths between 2,000-2,500 metres TVD.
The Property is offset by recent Duvernay drilling activity by Crescent Point Energy Corp. to the east of Blackspur’s land, Teine Energy Ltd. to the west of Blackspur’s land and Baytex Energy Ltd. to the south.
The following logs and map show the extent of the thick Duvernay shale which underlies Blackspur’s land.