Offering Details

PricewaterhouseCoopers Inc., LIT
SanLing Energy Ltd.
Receivership Sale
Bid Deadline: 6/24/2021 12:00 PM

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OVERVIEW

PRICEWATERHOUSECOOPERS INC., LIT RECEIVED COURT APPROVAL ON SEPTEMBER 24, 2021 FOR THE SALE OF CERTAIN OF SANLING'S OIL AND NATURAL GAS INTERESTS.  PLEASE REFER TO THE LINK BELOW FOR A LIST OF THE REMAINING SANLING WELLS WHICH ARE STILL AVAILABLE.

Updated Well List

Sayer Energy Advisors has been engaged to assist PricewaterhouseCoopers Inc., LIT (“PwC”) in its capacity as Court-appointed receiver (the “Receiver”) of SanLing Energy Ltd. (“SanLing” or the “Company”) with the sale of all of the Company’s oil and natural gas properties located in Alberta and British Columbia (the “Properties”).

On April 23, 2021, the Receiver was appointed by the Court pursuant to an application made by the Orphan Well Association (“OWA”) and the BC Oil and Gas Commission (“BCOGC”) and intends to divest the Properties, in whole or in part.

The Properties consist of both operated and non-operated interests which are located throughout Alberta and British Columbia. The Properties are separated into the following geographical packages for this offering: Southern Alberta Oil, Southern Alberta Gas, Matziwin, Drumheller, Provost, Pembina, North Oil, Peace River Arch, Rainbow Oil, and Rainbow Gas in Alberta, as well as Noel, Lagarde and Northeastern BC in British Columbia.

The package outlines shown on the maps within are based on reserve areas and additional wells may be found in the well list and lease operating statements for each area. Please note that in cases where only one well event is shown for a well with multiple legs, multiple UWIs or multiple well events under one license, all wells with the same license number are available.

On March 31, 2021, SanLing ceased its operations in Alberta and British Columbia.

Average production net to SanLing from the Properties in 2020 was 4,368 boe/d, consisting of 20.2 MMcf/d of natural gas and 1,000 barrels of oil and natural gas liquids per day.

Details of all SanLing’s facilities are available in the virtual data room for parties that execute a confidentiality agreement.

Overview Map Showing the Location of SanLing's Properties

Production Overview

Average production net to SanLing from the Properties in 2020 was 4,368 boe/d, consisting of 20.2 MMcf/d of natural gas and 1,000 barrels of oil and natural gas liquids per day.

Gross Production Group Plot of SanLing's Wells

The decline shown in the group production plot since 2015 reflects no new drilling activity. Only well repairs were completed. The drop in production in 2020 was due to low commodity prices which triggered SanLing to shut in low-return operated facilities.

LMR Summary

Alberta

As of March 6, 2021, SanLing’s net deemed asset value in Alberta was ($69.3 million) (deemed assets of $110.0 million and deemed liabilities of $179.3 million), with an LMR ratio of 0.61.

SanLing has $281,834 on deposit with the Alberta Energy Regulator (“AER”). The deposit held by the AER is not accounted for in the LMR numbers above.

British Columbia

As of February 23, 2021, SanLing’s net deemed asset value in British Columbia was ($4.4 million) (deemed assets of $7.0 million and deemed liabilities of $11.4 million), with an LMR ratio of 0.62.

SanLing has $1,618,775 on deposit with the BCOGC. The deposit held by the BCOGC is not accounted for in the LMR numbers above.

Facilities Overview

SanLing holds various working interests in facilities associated with the Properties. Details on SanLing’s facilities are available in the virtual data room for parties that execute a confidentiality agreement.

Seismic

Details on the Company’s seismic ownership are available in the virtual data room for parties that execute a confidentiality agreement.

Reserves Overview

GLJ Ltd. (“GLJ”) was commissioned by SanLing to prepare a mechanical update of its oil and natural gas reserves effective December 31, 2019 (the “GLJ Report”).

The evaluation was initiated in May 2020 and completed by June 2020. Estimates of reserves and projections of production were generally prepared using well information and production data available from public sources to approximately December 31, 2019. The Company provided land, accounting data and other technical information not available in the public domain to approximately December 31, 2019. In certain instances, the Company also provided recent engineering, geological and other information up to December 31, 2019. The Company has confirmed that, to the best of its knowledge, all information provided to GLJ is correct and complete as of the effective date.

The GLJ Report is effective December 31, 2019, using Sproule Associates Limited’s December 31, 2019 forecast pricing.

GLJ estimated that as of December 31, 2019 the Properties contained remaining proved plus probable reserves of 8.0 million barrels of oil and natural gas liquids and 121.9 Bcf of natural gas (28.3 million boe), with an estimated net present value of approximately $99.8 million using forecast pricing at a 10% discount.


Well List

Click here to download the complete well list in Excel.