Offering Details

Chair Resources Inc.
Property Divestiture
Bid Deadline: 10/28/2021 12:00 PM

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OVERVIEW

Chair Resources Inc. and Chair Holdings Limited (collectively “Chair” or the “Company”) has engaged Sayer Energy Advisors (“Sayer”) to assist it with the sale of all of the assets of the Company which are located throughout western Canada.

The Company’s oil and natural gas assets consist of long-life, low-decline, non-operated oil and natural gas working interests and royalty interests in the Verger, Lloydminster, Swan Hills, Nipisi, Hangingstone/Portage and Fontas areas of Alberta and Saskatchewan (the “Properties”).

The Company share of production from the Properties was approximately 262 barrels of oil equivalent per day (1.5 MMcf/d of natural gas and 14 barrels of oil and natural gas liquids per day) in the first six months of 2021.

Details on the Company’s facilities and infrastructure is available in the data room for parties that execute a confidentiality agreement.

Overview Map Showing the Location of Chair's Divestiture Properties

Production Overview

The Company share of production from the Properties was approximately 262 barrels of oil equivalent per day (1.5 MMcf/d of natural gas and 14 barrels of oil and natural gas liquids per day) in the first six months of 2021.

Reserves Overview

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of Chair’s properties as part of the Company’s year-end reporting (the “Trimble Report”). The Trimble Report is effective December 31, 2019, using Trimble’s January 1, 2020 forecast pricing. The Trimble Report was updated for the Swan Hills and Verger properties (the “Updated Report”). The Updated Report is effective August 31, 2021, using Trimble’s July 1, 2021 forecast pricing.

Trimble estimates that as of December 31, 2019 and August 31, 2021, the Properties contained remaining proved plus probable reserves of 45,000 barrels of oil and natural gas liquids and 4.0 Bcf of natural gas (710,000 boe), with an estimated net present value of approximately $959,000 using forecast pricing at a 10% discount.


LMR Summary

Chair does not operate any wells or facilities.

Seismic

Chair has differing quantities and ownership in 2D and 3D seismic data over portions of several Properties including Hangingstone/Portage, Lloydminster, Nipisi and Swan Hills.

Information on the seismic ownership will be made available in the data room to parties that execute a confidentiality agreement.