Offering Details
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Lookout Butte Royalty
Royalty DivestitureBid Deadline: October 8, 2026
12:00 PM
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OVERVIEW
Sayer Energy Advisors has been engaged by a royalty holder (the “Royalty Holder”) to assist the Royalty Holder with the sale of its royalty interests, consisting of gross overriding royalty (“GORR”) interest, located in the Lookout Butte/Waterton area of southern Alberta (the “Property”). The GORR was acquired by the Royalty Holder in consideration for the exchange of outstanding debt owed by the former working interest owner.The Property consists of a 3.0% GORR interest on the Lookout Butte Rundle Unit No. 1 with long-life, low-decline oil and natural gas production.
Overview Map Showing the Location of the Divestiture Property
LOOKOUT BUTTE/WATERTON
Township 1-2, Range 28-29 W4At Lookout Butte/Waterton, the Royalty Holder holds a non-convertible 3.0% GORR interest in the Lookout Butte Rundle Unit No. 1 operated by Loyal Energy (Canada) Operating Ltd. Oil and natural gas production from the unit is from the Mississippian-aged Rundle Group.
Royalty income net to the Royalty Holder from the Property for the year ended December 31, 2025 was approximately $214,000, or $17,800 per month, based on activity month. Monthly royalty income for the five months ended June 30, 2026 has averaged approximately $20,600 per month, based on activity month.
Daily royalty production net to the Royalty Holder from the Property for the year ended December 31, 2025 averaged approximately 17 boe/d consisting of 76 Mcf/d and 5 bbl/d of oil and natural gas liquids and approximately 0.13 mt/d of sulphur production.
Daily royalty production net to the Royalty Holder for the five months ended June 30, 2026 has averaged approximately 14 boe/d consisting of 62 Mcf/d and 4 bbl/d of oil and natural gas liquids and approximately 0.11 mt/d of sulphur production.
Production from the Property was temporarily shut-in for the month of January 2026.
Lookout Butte Rundle Unit No. 1 - Gross Production Group Plot
Liability Assessment
The Royalty Holder does not hold a working interest in any wells or facilities related to the Property.
Reserves Overview
The Royalty Holder does not have a reserve evaluation related to the Property.
Facilities Overview
The Royalty Holder does not have an interest in any facilities related to the Property. Production from the Property runs through Cavvy Energy Ltd.’s Waterton natural gas plant and sulphur facility.
The Cavvy Waterton facility had planned 3-week downtime relating to a non-operated sales line outage in June 2026.
Well List
Click here to download the complete well list in Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Property until 12:00 pm on Thursday October 8, 2026.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday October 8, 2026.
NOTE REGARDING A SAYER PROCESS
On each and every offering brochure generated by Sayer, you will note the sentence “Sayer Energy Advisors does not conduct a “second-round” bidding process; the intention is to attempt to conclude a sale of the Property with the party submitting the most acceptable proposal at the conclusion of the process.” What this means is that Sayer will not go back to multiple parties at the same time after bids are received, asking them all for a second bid. We determine which party submitted the most acceptable proposal and then we attempt to negotiate acceptable terms with that party in a “one-off” situation.
If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
In the extremely rare circumstance where two or more parties submit virtually identical proposals, we will contact all parties, we will advise them of this situation and we will ask them to submit a revised proposal. Once these are received, we will work with the party which has submitted the most acceptable proposal.If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
CONFIDENTIALITY AGREEMENT
Parties wishing to receive access to the confidential information with detailed technical information relating to this opportunity should execute the Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, email (tpavic@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: royalty agreement, most recent royalty income statements and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Property please contact Tom Pavic, Ben Rye or Sydney Birkett at 403.266.6133.