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Current Offerings / Highvale Energy Limited
Highvale Energy Limited
Property DivestitureBid Deadline: November 26, 2026
12:00 PM
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OVERVIEW
Highvale Energy Limited (“Highvale” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its oil and natural gas interests located in the Cherhill area of Alberta (the “Property”).
Following recent repairs and reactivations, current production from the Property is approximately 173 boe/d, consisting of 783 Mcf/d of natural gas and 43 bbl/d of oil and natural gas liquids.
Average daily production net to Highvale from Cherhill for the six months ended June 30, 2026 was approximately 152 boe/d, consisting of 679 Mcf/d of natural gas and 39 bbl/d of oil and natural gas liquids.
Forecasted operating income net to the Company from the Property for the year ended December 31, 2027 is approximately $364,000 on a proved developed producing basis.
Following recent repairs and reactivations, current production from the Property is approximately 173 boe/d, consisting of 783 Mcf/d of natural gas and 43 bbl/d of oil and natural gas liquids.
Average daily production net to Highvale from Cherhill for the six months ended June 30, 2026 was approximately 152 boe/d, consisting of 679 Mcf/d of natural gas and 39 bbl/d of oil and natural gas liquids.
Forecasted operating income net to the Company from the Property for the year ended December 31, 2027 is approximately $364,000 on a proved developed producing basis.
Overview Map Showing the Location of the Divestiture Property
CHERHILL
Township 55-57, Range 4-7 W5
At Cherhill, Highvale holds an average 80% working interest in approximately 41.5 sections of land, including a 100% working interest in the Cherhill Banff H Pool Unit No. 1. Production from Cherhill is primarily from the Banff, Belly River and Viking formations. The Company also has existing infrastructure including a sour natural gas processing plant with excess capacity located at 02-25-056-06W5. The Company has identified potential for additional third-party processing.
The Company has identified stacked upside potential on its lands at Cherhill in the Banff, Belly River, Ellerslie and Viking formations. The majority of the land base is undeveloped.
Following recent repairs and reactivations, current production from the Property is approximately 173 boe/d, consisting of 783 Mcf/d of natural gas and 43 bbl/d of oil and natural gas liquids.
Average daily production net to Highvale from Cherhill for the six months ended June 30, 2026 was approximately 152 boe/d, consisting of 679 Mcf/d of natural gas and 39 bbl/d of oil and natural gas liquids.
Forecasted operating income net to the Company from the Property for the year ended December 31, 2027 is approximately $364,000 on a proved developed producing basis.
At Cherhill, Highvale holds an average 80% working interest in approximately 41.5 sections of land, including a 100% working interest in the Cherhill Banff H Pool Unit No. 1. Production from Cherhill is primarily from the Banff, Belly River and Viking formations. The Company also has existing infrastructure including a sour natural gas processing plant with excess capacity located at 02-25-056-06W5. The Company has identified potential for additional third-party processing.
The Company has identified stacked upside potential on its lands at Cherhill in the Banff, Belly River, Ellerslie and Viking formations. The majority of the land base is undeveloped.
Following recent repairs and reactivations, current production from the Property is approximately 173 boe/d, consisting of 783 Mcf/d of natural gas and 43 bbl/d of oil and natural gas liquids.
Average daily production net to Highvale from Cherhill for the six months ended June 30, 2026 was approximately 152 boe/d, consisting of 679 Mcf/d of natural gas and 39 bbl/d of oil and natural gas liquids.
Forecasted operating income net to the Company from the Property for the year ended December 31, 2027 is approximately $364,000 on a proved developed producing basis.
Cherhill, Alberta
Gross Production Group Plot of Highvale's Oil & Natural Gas Wells
The following production plot for 2026 outlines the recent reactivations and repairs completed by Highvale.
The well Long Run Cherhill 100/08-27-056-06W5/0 was reactivated in March 2026. The injection well valve at 100/14-23-056-06W5/0 was repaired in May 2026, and the compressor panel at 02-25-056-06W5 was repaired in June 2026. Base production recovered quickly after each event, confirming a resilient, low-decline production profile.
Since acquiring the Cherhill property in late 2025, Highvale has invested in facility integrity and regulatory work, and the Property is currently well-maintained and in good standing.
The Company completed a thorough Alberta Energy Regulator assisted inspection and identified several items that were all resolved and brought into compliance.
Meter calibrations and an updated ERP were completed and are considered current. All ultrasonic testing work was completed at the 02-25-056-06W5/0 facility including a major treater repair that was finished at the end of 2025.
A turnaround was completed at the 06-26-056-06W5 satellite facility which keeps the site compliant until the end of the third quarter of 2031.
Cherhill Upside
The Company has identified stacked upside potential on its lands at Cherhill in the Banff, Belly River, Ellerslie and Viking formations. The majority of the land base is undeveloped. The Cherhill property is located in a mature producing area, with low exploration risk.
The Company has identified four conventional reservoir stacks on its lands as shown in the following image. The area has generally been developed with vertical wells, before modern horizontal completions were available. It is believed that implementing horizontal drilling and multi-stage fracturing would enhance productivity.
Since acquiring the Cherhill property in late 2025, Highvale has invested in facility integrity and regulatory work, and the Property is currently well-maintained and in good standing.
The Company completed a thorough Alberta Energy Regulator assisted inspection and identified several items that were all resolved and brought into compliance.
Meter calibrations and an updated ERP were completed and are considered current. All ultrasonic testing work was completed at the 02-25-056-06W5/0 facility including a major treater repair that was finished at the end of 2025.
A turnaround was completed at the 06-26-056-06W5 satellite facility which keeps the site compliant until the end of the third quarter of 2031.
Cherhill Upside
The Company has identified stacked upside potential on its lands at Cherhill in the Banff, Belly River, Ellerslie and Viking formations. The majority of the land base is undeveloped. The Cherhill property is located in a mature producing area, with low exploration risk.
The Company has identified four conventional reservoir stacks on its lands as shown in the following image. The area has generally been developed with vertical wells, before modern horizontal completions were available. It is believed that implementing horizontal drilling and multi-stage fracturing would enhance productivity.
Further technical details on the Property will be made available to parties that execute a confidentiality agreement.
Belly River Formation
The Belly River Formation is the shallowest target zone at Cherhill, found at a depth of approximately 650 m and has over 100 wells producing from the formation in the area.
The following map shows the Belly River sand isopach at Cherhill.
Belly River Formation
The Belly River Formation is the shallowest target zone at Cherhill, found at a depth of approximately 650 m and has over 100 wells producing from the formation in the area.
The following map shows the Belly River sand isopach at Cherhill.
Viking Formation
The Viking Formation at Cherhill is found at a depth of approximately 1,150 m with approximately 5 million barrels of original oil in place, which has produced approximately 340,000 barrels to date and contains an estimated 160,000 barrels of remaining recoverable oil at a 10% recovery factor. The Company believes additional water injection in the Viking would improve recovery further.
The following map shows the Viking net pay at Cherhill with the strongest feature shown around Sections 25 and 26-056-06W5.
The Viking Formation at Cherhill is found at a depth of approximately 1,150 m with approximately 5 million barrels of original oil in place, which has produced approximately 340,000 barrels to date and contains an estimated 160,000 barrels of remaining recoverable oil at a 10% recovery factor. The Company believes additional water injection in the Viking would improve recovery further.
The following map shows the Viking net pay at Cherhill with the strongest feature shown around Sections 25 and 26-056-06W5.
Ellerslie Formation
The Ellerslie/Ostracod target at Cherhill is found at a depth of approximately 1,500 m. The pool has produced approximately 507,000 barrels of oil from 6 wells and continues to improve with horizontal drilling.
The following map shows the Ellerslie isopach and Paddle River Ostracod A Pool at Cherhill.
The Ellerslie/Ostracod target at Cherhill is found at a depth of approximately 1,500 m. The pool has produced approximately 507,000 barrels of oil from 6 wells and continues to improve with horizontal drilling.
The following map shows the Ellerslie isopach and Paddle River Ostracod A Pool at Cherhill.
The Middle Ellerslie shown in the following net pay map shows the strongest mapped features and thickest reservoirs at Paddle River and Westcove.
Banff Formation
The Banff Formation is found at a depth of approximately 1,550 m at Cherhill. The following map shows the porous interval which is the productive fairway and was mapped with well logs and core. The Banff reservoir consists of repeatable, small traps in one to two-section closures.
The Banff Formation is found at a depth of approximately 1,550 m at Cherhill. The following map shows the porous interval which is the productive fairway and was mapped with well logs and core. The Banff reservoir consists of repeatable, small traps in one to two-section closures.
Cherhill Seismic
The Company has proprietary and partner 2D and 3D seismic data relating to its interests at Cherhill. Information relating to the seismic will be made available in the virtual data room to parties that execute a confidentiality agreement.
Cherhill Marketing
Natural gas enters the Highvale 02-25-056-06W5 sour natural gas plant from both the field gathering system as well as the oil battery and is processed in the inlet separator. Produced water is stored and then injected into off lease wells. Natural gas is compressed and then processed through the amine plant for sweetening before entering the refrigeration plant to meet hydrocarbon dewpoint. Sales spec natural gas is shipped to the ATCO meter station at Lisburn A 30301 and is sold to Twin Eagle Resource Management Canada LLC. NGLs are trucked to the FOB Highvale Gas Plant 10-04-051-04W5 and sold to Tidewater Midstream and Infrastructure Ltd.
Cherhill Reserves
Highvale prepared an internal reserves evaluation of the Property (the “Reserve Report”). The Reserve Report is effective January 1, 2026 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd., and Sproule ERCE’s forecast pricing as at December 31, 2025.
Highvale estimated that, as at January 1, 2026, the Cherhill property contained remaining proved plus probable reserves of 3.1 Bcf of natural gas and 258,000 barrels of oil and natural gas liquids (776,000 boe), with an estimated net present value of $3.5 million using forecast pricing at a 10% discount.
The Company has proprietary and partner 2D and 3D seismic data relating to its interests at Cherhill. Information relating to the seismic will be made available in the virtual data room to parties that execute a confidentiality agreement.
Cherhill Marketing
Natural gas enters the Highvale 02-25-056-06W5 sour natural gas plant from both the field gathering system as well as the oil battery and is processed in the inlet separator. Produced water is stored and then injected into off lease wells. Natural gas is compressed and then processed through the amine plant for sweetening before entering the refrigeration plant to meet hydrocarbon dewpoint. Sales spec natural gas is shipped to the ATCO meter station at Lisburn A 30301 and is sold to Twin Eagle Resource Management Canada LLC. NGLs are trucked to the FOB Highvale Gas Plant 10-04-051-04W5 and sold to Tidewater Midstream and Infrastructure Ltd.
Cherhill Reserves
Highvale prepared an internal reserves evaluation of the Property (the “Reserve Report”). The Reserve Report is effective January 1, 2026 using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd., and Sproule ERCE’s forecast pricing as at December 31, 2025.
Highvale estimated that, as at January 1, 2026, the Cherhill property contained remaining proved plus probable reserves of 3.1 Bcf of natural gas and 258,000 barrels of oil and natural gas liquids (776,000 boe), with an estimated net present value of $3.5 million using forecast pricing at a 10% discount.
Cherhill Facilities
At Cherhill, the Company has a working interest in the following facilities:
At Cherhill, the Company has a working interest in the following facilities:
Highvale has existing infrastructure including roads, batteries and gathering system, 3 disposal wells and a 100% working interest in a sour natural gas plant located at 02-25-056-06W5 with 9.0 MMcf/d of capacity including an amine and refrigeration facility.
02-25-056-06W5
Sour Natural Gas Plant
Sour Natural Gas Plant
Further details on the Company’s facilities are available in the virtual data room for parties that execute a confidentiality agreement.
Cherhill Liability Assessment
As of September 1, 2026, the Cherhill property had a deemed liability value of $4.0 million.
Cherhill Well List
Click here to download the complete well list in Excel.
Cherhill Liability Assessment
As of September 1, 2026, the Cherhill property had a deemed liability value of $4.0 million.
Cherhill 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, November 26, 2026.
Sayer Energy Advisors does not typically 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, November 26, 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 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: summary land information, most recent net lease operating statements, the Reserve Report, deemed liability information 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.