Offering Details

OVERVIEW

Rake Resources Ltd. (“Rake” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of the shares of the Company.

Rake is a private company with over 30 years of history operating oil and natural gas properties in southeastern Saskatchewan. Rake has one shareholder, no severance obligations, no employees and a minimal office lease obligation. Rake currently has approximately $350,000 in positive working capital. Additional corporate information relating to Rake will be provided to parties upon execution of a confidentiality agreement.

The Company’s operations are focused in southeastern Saskatchewan near the Manitoba border. Rake’s oil properties are located northwest of the town of Moosomin in the Welwyn and Burrows areas of Saskatchewan (the “Properties”). The Properties are 100% operated by Rake. The Company’s wells are all vertical wells which are unfracked. The Company believes there is upside potential in completing the vertical wells and in drilling horizontally.

Current production net to Rake from the Properties consists of approximately 11 barrels of oil per day from six producing oil wells. Earlier this year, the Company shut-in production with the onset of the COVID-19 pandemic. Prior to the shut-in, average daily production net to Rake from the Properties in January 2020 was approximately 22 barrels of oil per day.

As of September 28, 2020, Rake’s net deemed asset value was ($120,452) (deemed assets of $472,748 and deemed liabilities of $593,200), with an LMR ratio of 0.80. The Company currently has approximately $52,000 on deposit with the government of Saskatchewan.

Overview Map Showing the Location of Rake's Properties

Production Overview

Current production net to Rake is approximately 11 barrels of oil per day. Earlier this year, the Company shut-in production from the Burrows property. Prior to the shut-in, average daily production net to Rake from the Properties in January 2020 was approximately 22 barrels of oil per day as outlined in the table below.

Gross Production Group Plot of Rake's Oil Wells

Rake’s Properties are located in close proximity to one another as well as the TransCanada highway. The distance between Burrows and Welwyn is approximately 22 kilometres.

Map Showing the Location of Rake's Properties

LMR Overview as of September 28, 2020

As of September 28, 2020, Rake’s net deemed asset value was ($120,452) (deemed assets of $472,748 and deemed liabilities of $593,200), with an LMR ratio of 0.80.

The Company currently has approximately $52,000 on deposit with the government of Saskatchewan.

Seismic

The Company has ownership in 12 lines of proprietary 2D seismic data over its lands at Welwyn. Rake does not have ownership in any 3D seismic data.

Marketing Overview

The Company’s oil is trucked to the Cromer terminal in Manitoba and is marketed by Trafigura Canada General Partnership.

Reserves Overview

The Company does not have a third-party engineering report for the Properties.