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Under Review / West Lake Energy Corp.
West Lake Energy Corp.
Property DivestitureBid Deadline: June 23, 2022
12:00 PM
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OVERVIEW
West Lake Energy Corp. (“West Lake” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of all its oil and natural gas interests in the Province of Saskatchewan. The producing properties are located in the Battle River, Cactus Lake, Celtic, Epping, Furness, Lashburn, Mervin, Pikes Peak, Silverdale and Tangleflags areas of Saskatchewan and the non-producing properties are located in the Ear Lake, Freemont, Macklin, Maidstone, Manitou, Marsden, Primate and Rush Lake areas of Saskatchewan (the “Properties”).
West Lake operates all of the Properties, generally holding a 100% working interest including associated facilities. The Properties are generally located near Lloydminster, Saskatchewan and have minimal impending expiries. The Company has ownership in significant seismic data coverage relating to the Properties.
Total production net to West Lake from the Properties in the first quarter of 2022 averaged approximately 1,152 boe/d, consisting of 1,134 barrels of heavy oil per day and 108 Mcf/d of natural gas.
Net operating income from the Properties averaged approximately $1.9 million in March 2022, or $22.5 million on an annualized basis.
West Lake has mapped significant upside on the Properties which resulted in a total of 33 proven plus probable horizontal and vertical drilling locations booked on the Properties and an additional 104 unbooked drilling locations, as well as 19 recompletion opportunities and 73 reactivation candidates.
As of April 28, 2022, the Properties had a positive deemed net asset value of $1.6 million (deemed assets of $31.0 million less liabilities of $29.4 million), with an LMR ratio of 1.06.
West Lake’s preference is to sell all of the Properties in one transaction on a white map basis.
West Lake operates all of the Properties, generally holding a 100% working interest including associated facilities. The Properties are generally located near Lloydminster, Saskatchewan and have minimal impending expiries. The Company has ownership in significant seismic data coverage relating to the Properties.
Total production net to West Lake from the Properties in the first quarter of 2022 averaged approximately 1,152 boe/d, consisting of 1,134 barrels of heavy oil per day and 108 Mcf/d of natural gas.
Net operating income from the Properties averaged approximately $1.9 million in March 2022, or $22.5 million on an annualized basis.
West Lake has mapped significant upside on the Properties which resulted in a total of 33 proven plus probable horizontal and vertical drilling locations booked on the Properties and an additional 104 unbooked drilling locations, as well as 19 recompletion opportunities and 73 reactivation candidates.
As of April 28, 2022, the Properties had a positive deemed net asset value of $1.6 million (deemed assets of $31.0 million less liabilities of $29.4 million), with an LMR ratio of 1.06.
West Lake’s preference is to sell all of the Properties in one transaction on a white map basis.
Overview Map Showing Location of the Divestiture Properties
Property Index Map
Reactivations Summary Map
Property Index Map
Reactivations Summary Map
Production, Reserves & NOI Overview
Total production net to West Lake from the Properties in the first quarter of 2022 averaged approximately 1,152 boe/d, consisting of 1,134 barrels of heavy oil per day and 108 Mcf/d of natural gas.
West Lake has identified drill ready, booked locations which are available to increase production to 2,500 barrels of oil per day as shown in the following plot.
Total production net to West Lake from the Properties in the first quarter of 2022 averaged approximately 1,152 boe/d, consisting of 1,134 barrels of heavy oil per day and 108 Mcf/d of natural gas.
West Lake has identified drill ready, booked locations which are available to increase production to 2,500 barrels of oil per day as shown in the following plot.
Net operating income from the Properties averaged approximately $1.5 million per month for the first quarter of 2022, or $18.5 million on an annualized basis.
Net operating income from the Properties averaged approximately $1.9 million in March 2022, or $22.5 million on an annualized basis. Annualized net operating income for April to December 2022 is forecasted to be $23.4 million on a total proved, and $28.5 million on a total proved plus probable basis.
Net operating income from the Properties averaged approximately $1.9 million in March 2022, or $22.5 million on an annualized basis. Annualized net operating income for April to December 2022 is forecasted to be $23.4 million on a total proved, and $28.5 million on a total proved plus probable basis.
Reserves Overview
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Properties contained remaining proven plus probable reserves of approximately 5.6 million barrels of oil, with an estimated net present value of $75.1 million using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Properties contained remaining proven plus probable reserves of approximately 5.6 million barrels of oil, with an estimated net present value of $75.1 million using forecast pricing at a 10% discount.
*Q1 NOI numbers are based on lease operating statements by operating month.
LMR Overview as of April 28, 2022
As of April 28, 2022, the Properties had a positive deemed net asset value of $1.6 million (deemed assets of $31.0 million less liabilities of $29.4 million), with an LMR ratio of 1.06.
West Lake has $0.8 million of Accelerated Site Closure Program funding remaining. In addition, West Lake plans to spend an additional $1.5 million prior to the end of the second quarter of 2022 on abandonments, reclamation, and remediation.
Marketing
The crude oil production volumes from the Properties are mainly sold to Gibson Energy Inc.’s Hardisty Terminal and Husky Oil Operations Limited.’s Blackfoot Cleaning Plant. Small volumes were sold to Flint Hills Resources Canada LP’s Hardisty Truck Terminal. Sales are made under West Lake’s corporate marketing agreements with the purchasers. None of the Properties are dedicated to any long-term sales contract.
Seismic Overview
West Lake has trade and proprietary seismic over a portion of the Properties, as illustrated on the following maps. The Company’s interpretations of the seismic are available for viewing on the workstation, which is in the Data Room located in Sayer’s office, by parties which have executed a confidentiality agreement. All of the seismic data owned by West Lake associated with the Properties is available for purchase.
The crude oil production volumes from the Properties are mainly sold to Gibson Energy Inc.’s Hardisty Terminal and Husky Oil Operations Limited.’s Blackfoot Cleaning Plant. Small volumes were sold to Flint Hills Resources Canada LP’s Hardisty Truck Terminal. Sales are made under West Lake’s corporate marketing agreements with the purchasers. None of the Properties are dedicated to any long-term sales contract.
Seismic Overview
West Lake has trade and proprietary seismic over a portion of the Properties, as illustrated on the following maps. The Company’s interpretations of the seismic are available for viewing on the workstation, which is in the Data Room located in Sayer’s office, by parties which have executed a confidentiality agreement. All of the seismic data owned by West Lake associated with the Properties is available for purchase.
Proprietary 2D - South
Proprietary 2D - North
Proprietary 3D - South
Proprietary 3D - North
Proprietary 2D - North
Proprietary 3D - South
Proprietary 3D - North
West Lake shot a 3D program at Cactus Lake in late 2021 as shown on the following plat.
BATTLE RIVER
Township 46-47, Range 25-26 W3
At Battle River, West Lake holds a 100% working interest in 10 sections of land.
Production from Battle River net to West Lake for the first quarter of 2022 averaged approximately 406 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $805,000 per month, or $9.7 million on an annualized basis.
At Battle River, West Lake holds a 100% working interest in 10 sections of land.
Production from Battle River net to West Lake for the first quarter of 2022 averaged approximately 406 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $805,000 per month, or $9.7 million on an annualized basis.
Battle River, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Battle River Geology
The Company has identified potential development and step out drilling in the Lloydminster and Rex formations on its land at Battle River. West Lake has identified six proven undeveloped horizontal and two Probable Undeveloped horizontal drilling locations booked on its lands at Battle River and nine unbooked horizontal locations. The unbooked inventory at Battle River is planned as open hole mulit-lateral drilling. Economics of the booked drilling locations are top tier with an internal rate of return generally greater than 200% and payouts of eight months.
The Company has identified potential development and step out drilling in the Lloydminster and Rex formations on its land at Battle River. West Lake has identified six proven undeveloped horizontal and two Probable Undeveloped horizontal drilling locations booked on its lands at Battle River and nine unbooked horizontal locations. The unbooked inventory at Battle River is planned as open hole mulit-lateral drilling. Economics of the booked drilling locations are top tier with an internal rate of return generally greater than 200% and payouts of eight months.
The Company has implemented a waterflood in the Rex Formation with positive results to date. West Lake believes there is further expansion potential in the Rex, and is also planning to implement a waterflood in the Lloydminster Formation. McDaniel has assigned waterflood reserves to both pools. Production from and injection into the Rex pool are shown in the plot below.
West Lake is in the process of licensing three additional Lloydminster wells with the intention to drill them in late June 2022.
West Lake is in the process of licensing three additional Lloydminster wells with the intention to drill them in late June 2022.
Battle River Rex Waterflood
Lloydminster Formation
The Lloydminster Formation is found at depths of approximately 500-550 metres TVD at Battle River. Oil produced from the Lloydminster is approximately 11-13° API and Lloydminster net oil pay ranges from one to six metres thick.
Below is an example of the Lloydminster reservoir on West Lake’s land at Battle River. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Lloydminster Formation is found at depths of approximately 500-550 metres TVD at Battle River. Oil produced from the Lloydminster is approximately 11-13° API and Lloydminster net oil pay ranges from one to six metres thick.
Below is an example of the Lloydminster reservoir on West Lake’s land at Battle River. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Dome Lone Rock A7 11/07-11-047-26W3/0
Lloydminster Formation
Lloydminster Formation
West Lake has proprietary 2D and 3D seismic coverage over its Lloydminster lands at Battle River as shown on the following plat.
Rex Formation
The Rex Formation is found at depths of approximately 555-575 metres TVD at Battle River and Rex net oil pay ranges from two to four metres.
Below is an example of the Rex reservoir on West Lake’s land at Battle River. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Rex Formation is found at depths of approximately 555-575 metres TVD at Battle River and Rex net oil pay ranges from two to four metres.
Below is an example of the Rex reservoir on West Lake’s land at Battle River. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Waseca Battle River 111/13-14-047-25W3/0
Rex Formation
Rex Formation
West Lake has proprietary 2D and 3D seismic coverage over its Rex lands at Battle River as shown on the following plat.
Battle River Facilities
At Battle River, the Company owns a multi-well battery at 13-14-047-25W3 and an injection facility at 13-14-047-25W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Battle River LMR as of April 28, 2022
At Battle River, the Company owns a multi-well battery at 13-14-047-25W3 and an injection facility at 13-14-047-25W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Battle River LMR as of April 28, 2022
Battle River Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
The Company estimates that, as of March 31, 2022, the Battle River property contained remaining proven plus probable reserves of 1.7 million barrels of oil, with an estimated net present value of $34.0 million using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
The Company estimates that, as of March 31, 2022, the Battle River property contained remaining proven plus probable reserves of 1.7 million barrels of oil, with an estimated net present value of $34.0 million using forecast pricing at a 10% discount.
Battle River Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
CELTIC
Township 52, Range 22 W3
At Celtic, West Lake holds a 100% working interest in 3.75 sections of land.
Production from Celtic net to West Lake for the first quarter of 2022 averaged approximately 246 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $350,000 per month, or $4.2 million on an annualized basis.
At Celtic, West Lake holds a 100% working interest in 3.75 sections of land.
Production from Celtic net to West Lake for the first quarter of 2022 averaged approximately 246 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $350,000 per month, or $4.2 million on an annualized basis.
Celtic, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Celtic Geology
The Company has identified potential for additional development in the Upper Waseca and Lower Waseca B formations on its land at Celtic. West Lake has identified two proven undeveloped horizontal and four proven undeveloped vertical drilling locations booked on its lands at Celtic. The Company believes the oil could be exploited by implementing a waterflood in the Upper Waseca Formation.
Upper Waseca Formation
The Upper Waseca Formation is found at depths of approximately 450-475 metres TVD at Celtic and Upper Waseca net oil pay ranges from one to three metres.
Below is an example of the Upper Waseca reservoir on West Lake’s land at Celtic. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified potential for additional development in the Upper Waseca and Lower Waseca B formations on its land at Celtic. West Lake has identified two proven undeveloped horizontal and four proven undeveloped vertical drilling locations booked on its lands at Celtic. The Company believes the oil could be exploited by implementing a waterflood in the Upper Waseca Formation.
Upper Waseca Formation
The Upper Waseca Formation is found at depths of approximately 450-475 metres TVD at Celtic and Upper Waseca net oil pay ranges from one to three metres.
Below is an example of the Upper Waseca reservoir on West Lake’s land at Celtic. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Waseca Celtic DD 191/07-08-052-22W3/0
Upper Waseca Formation
Upper Waseca Formation
Lower Waseca B Formation
The Lower Waseca B Formation is found at depths of approximately 475-500 metres TVD at Celtic and Lower Waseca net oil pay ranges from four to over ten metres.
Below is an example of the Lower Waseca B reservoir on West Lake’s land at Celtic. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Lower Waseca B Formation is found at depths of approximately 475-500 metres TVD at Celtic and Lower Waseca net oil pay ranges from four to over ten metres.
Below is an example of the Lower Waseca B reservoir on West Lake’s land at Celtic. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Twin Butte Celtic DD 121/07-16-052-22W3/0
Lower Waseca B Formation
Lower Waseca B Formation
West Lake has proprietary 2D and 3D seismic coverage over its Waseca lands at Celtic as shown on the following plat.
Celtic Facilities
At Celtic, the Company owns an injection facility at 01-16-052-22W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Celtic LMR as of April 28, 2022
Celtic Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Celtic property contained remaining proven plus probable reserves of 747,000 barrels of oil, with an estimated net present value of $21.2 million using forecast pricing at a 10% discount.
Celtic Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
CACTUS LAKE
Township 36, Range 26-27 W3
At Cactus Lake, West Lake holds a 100% working interest in 10.25 sections of land. The Company has recently drilled the well West Lake Hz 01/06-12-036-27W3/0 in the McLaren Formation at Cactus Lake.
Production from Cactus Lake net to West Lake for the first quarter of 2022 averaged approximately 32 barrels of oil per day and 108 Mcf/d of natural gas (50 boe/d).
Net operating income from the property for the first quarter of 2022 averaged approximately $69,000 per month, or $822,000 on an annualized basis.
At Cactus Lake, West Lake holds a 100% working interest in 10.25 sections of land. The Company has recently drilled the well West Lake Hz 01/06-12-036-27W3/0 in the McLaren Formation at Cactus Lake.
Production from Cactus Lake net to West Lake for the first quarter of 2022 averaged approximately 32 barrels of oil per day and 108 Mcf/d of natural gas (50 boe/d).
Net operating income from the property for the first quarter of 2022 averaged approximately $69,000 per month, or $822,000 on an annualized basis.
Cactus Lake, Saskatchewan
West Lake Hz 01/06-12-036-27W3/0
Cactus Lake Geology
The Company has identified potential for large scale development in the McLaren Formation on its land at Cactus Lake. West Lake has identified 19 unbooked horizontal drilling locations. The Company believes the large volumes of oil originally in place could be exploited with the use of multi-lateral horizontal wells and waterflooding in the McLaren Formation.
McLaren Formation
The McLaren Formation is found at depths of approximately 700-750 metres TVD at Cactus Lake. Oil produced from the McLaren is approximately 12-14° API and McLaren net oil pay ranges from one to six metres.
Below is an example of the McLaren reservoir on West Lake’s land at Cactus Lake. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified potential for large scale development in the McLaren Formation on its land at Cactus Lake. West Lake has identified 19 unbooked horizontal drilling locations. The Company believes the large volumes of oil originally in place could be exploited with the use of multi-lateral horizontal wells and waterflooding in the McLaren Formation.
McLaren Formation
The McLaren Formation is found at depths of approximately 700-750 metres TVD at Cactus Lake. Oil produced from the McLaren is approximately 12-14° API and McLaren net oil pay ranges from one to six metres.
Below is an example of the McLaren reservoir on West Lake’s land at Cactus Lake. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
SPC Luseland 01/11-07-036-26W3/0
McLaren Formation
McLaren Formation
West Lake has proprietary and 3D seismic coverage over its McLaren lands at Cactus Lake as shown on the following plat. West Lake shot the 3D program in late 2021.
Cactus Lake Facilities
At Cactus Lake, the Company owns a multi-well battery at 13-14-047-25W3 and an injection facility at 13-14-047-25W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Cactus Lake LMR as of April 28, 2022
The well West Lake Hz 01/06-12-036-27W3/0 is included in the LMR for the Primate property.
Cactus Lake Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Cactus Lake property contained remaining proven plus probable reserves of 12,000 barrels of oil, with an estimated net present value of $376,000 using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Cactus Lake property contained remaining proven plus probable reserves of 12,000 barrels of oil, with an estimated net present value of $376,000 using forecast pricing at a 10% discount.
Cactus Lake Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
SILVERDALE
Township 48-50, Range 27-28 W3
At Silverdale, West Lake holds a 100% working interest in seven sections of land.
Production from Silverdale net to West Lake for the first quarter of 2022 averaged approximately 139 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $162,000 per month, or $1.9 million on an annualized basis.
At Silverdale, West Lake holds a 100% working interest in seven sections of land.
Production from Silverdale net to West Lake for the first quarter of 2022 averaged approximately 139 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $162,000 per month, or $1.9 million on an annualized basis.
Silverdale, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
The Company believes there is significant reactivations and waterflood optimization opportunities in the Sparky Formation at Silverdale.
Reactivations of 100 barrels of oil per day have been identified at Silverdale with minimal capital investment. The reactivations are economic at current prices with payout between 1-3 months. The reactivations have been recognised by McDaniel.
Silverdale Geology
The Company has identified drilling upside and recompletion potential in the Sparky and GP formations on its land at Silverdale. The Company has three probable undeveloped vertical locations booked at Silverdale. West Lake has also identified three unbooked vertical drilling locations and three unbooked horizontal drilling locations.
GP Formation
The GP Formation is found at depths of approximately 580-590 metres TVD at Silverdale. Oil produced from the GP is approximately 12-14° API and GP net oil pay ranges from one to four metres.
Below is an example of the GP reservoir on West Lake’s land at Silverdale. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emerge Silverdale DD 21/06-36-048-28W3/0
GP Formation
GP Formation
Sparky Formation
The Sparky Formation is found at depths of approximately 535-565 metres TVD at Silverdale. Oil produced from the Sparky is approximately 13-16° API and net oil pay ranges from one to eight metres.
Below is an example of the Sparky reservoir on West Lake’s land at Silverdale. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Sparky Formation is found at depths of approximately 535-565 metres TVD at Silverdale. Oil produced from the Sparky is approximately 13-16° API and net oil pay ranges from one to eight metres.
Below is an example of the Sparky reservoir on West Lake’s land at Silverdale. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
TBE Aberfeldy South DD 141/12-28-049-27W3/0
Sparky Formation
Sparky Formation
Silverdale Facilities
At Silverdale, the Company owns a multi-well battery at 08-14-049-24W3 and an injection plant consisting of eight 500 m3/d injection wells at 08-14-049-28W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Silverdale LMR as of April 28, 2022
Silverdale Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Silverdale property contained remaining proven plus probable reserves of 645,000 barrels of oil, with an estimated net present value of $7.2 million using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Silverdale property contained remaining proven plus probable reserves of 645,000 barrels of oil, with an estimated net present value of $7.2 million using forecast pricing at a 10% discount.
Silverdale Well List
Click here to download the complete well list.
Click here to download the complete well list.
FURNESS
Township 48, Range 26-28 W3
At Furness, West Lake holds a 100% working interest in P&NG rights from surface to the base of the Mannville Group in approximately 4.5 sections of land.
Production from Furness net to West Lake for the first quarter of 2022 averaged approximately 33 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $9,700 per month, or $116,000 on an annualized basis.
At Furness, West Lake holds a 100% working interest in P&NG rights from surface to the base of the Mannville Group in approximately 4.5 sections of land.
Production from Furness net to West Lake for the first quarter of 2022 averaged approximately 33 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $9,700 per month, or $116,000 on an annualized basis.
Furness, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Furness Geology
The Company has identified drilling upside and recompletion potential in the Sparky and GP formations on its land at Furness. West Lake has identified one unbooked horizontal drilling location as well as five unbooked recompletion opportunities.
GP Formation
The GP Formation is found at depths of approximately 600-615 metres TVD at Furness. Oil produced from the GP is approximately 13-16° API and GP net oil pay ranges from one to four metres.
Below is an example of the GP reservoir on West Lake’s land at Furness. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified drilling upside and recompletion potential in the Sparky and GP formations on its land at Furness. West Lake has identified one unbooked horizontal drilling location as well as five unbooked recompletion opportunities.
GP Formation
The GP Formation is found at depths of approximately 600-615 metres TVD at Furness. Oil produced from the GP is approximately 13-16° API and GP net oil pay ranges from one to four metres.
Below is an example of the GP reservoir on West Lake’s land at Furness. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emerge Furness 111/14-04-048-27W3/0
GP Formation
GP Formation
Sparky Formation
The Sparky Formation is found at depths of approximately 590-605 metres TVD at Furness. Oil produced from the Sparky is approximately 14-16° API and Sparky net oil pay ranges from one to four metres.
Below is an example of the Sparky reservoir on West Lake’s land at Furness. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Sparky Formation is found at depths of approximately 590-605 metres TVD at Furness. Oil produced from the Sparky is approximately 14-16° API and Sparky net oil pay ranges from one to four metres.
Below is an example of the Sparky reservoir on West Lake’s land at Furness. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emerge Furness 111/14-04-048-27W3/0
Sparky Formation
Sparky Formation
Furness Facilities
At Furness, the Company owns multiple single well batteries and two disposal facilities at 03-04-048-27W3 and 13-27-048-27W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Furness LMR as of April 28, 2022
Furness Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Furness property contained remaining proven plus probable reserves of 118,000 barrels of oil, with an estimated net present value of $345,000 using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Furness property contained remaining proven plus probable reserves of 118,000 barrels of oil, with an estimated net present value of $345,000 using forecast pricing at a 10% discount.
Furness Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
TANGLEFLAGS
Township 51-56, Range 23-28 W3
At Tangleflags, West Lake holds a 100% working interest in seven sections and a 50% working interest in one half section of land.
Production from Tangleflags net to West Lake for the first quarter of 2022 averaged approximately 58 boe/d, consisting of 58 barrels of oil per day and trace amounts of natural gas.
Net operating income from the property for the first quarter of 2022 averaged approximately $55,000 per month, or $660,000 on an annualized basis.
At Tangleflags, West Lake holds a 100% working interest in seven sections and a 50% working interest in one half section of land.
Production from Tangleflags net to West Lake for the first quarter of 2022 averaged approximately 58 boe/d, consisting of 58 barrels of oil per day and trace amounts of natural gas.
Net operating income from the property for the first quarter of 2022 averaged approximately $55,000 per month, or $660,000 on an annualized basis.
Tangleflags, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Tangleflags Geology
The Company has identified drilling upside and recompletion potential in the Sparky, GP, Lloydminster, McLaren formations on its land at Tangleflags. The Company has 16 probable undeveloped vertical drilling locations booked at Tangleflags. West Lake has also identified11 unbooked horizontal and three unbooked vertical drilling locations, as well as six recompletion opportunities.
McLaren Formation
The McLaren Formation is found at depths of approximately 400-440 metres TVD at Tangleflags. Oil produced from the McLaren is approximately 12-15° API and McLaren net oil pay ranges from one to five metres thick.
Below is an example of the McLaren reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified drilling upside and recompletion potential in the Sparky, GP, Lloydminster, McLaren formations on its land at Tangleflags. The Company has 16 probable undeveloped vertical drilling locations booked at Tangleflags. West Lake has also identified11 unbooked horizontal and three unbooked vertical drilling locations, as well as six recompletion opportunities.
McLaren Formation
The McLaren Formation is found at depths of approximately 400-440 metres TVD at Tangleflags. Oil produced from the McLaren is approximately 12-15° API and McLaren net oil pay ranges from one to five metres thick.
Below is an example of the McLaren reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Waseca Rex DD 191/09-36-051-28W3/0
McLaren Formation
McLaren Formation
Lloydminster Formation
The Lloydminster Formation is found at depths of approximately 500-515 metres TVD at Tangleflags. Oil produced from the Lloydminster is approximately 12-15° API and Lloydminster net oil pay ranges from one to eight metres thick.
Below is an example of the Lloydminster reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Lloydminster Formation is found at depths of approximately 500-515 metres TVD at Tangleflags. Oil produced from the Lloydminster is approximately 12-15° API and Lloydminster net oil pay ranges from one to eight metres thick.
Below is an example of the Lloydminster reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Waseca Tangleflags North 121/11-30-052-25W3/0
Lloydminster Formation
Lloydminster Formation
Sparky Formation
The Sparky Formation is found at depths of approximately 470-480 metres TVD at Tangleflags. Oil produced from the Sparky is approximately 12-15° API and Sparky net oil pay ranges from one to six metres.
Below is an example of the Sparky reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Sparky Formation is found at depths of approximately 470-480 metres TVD at Tangleflags. Oil produced from the Sparky is approximately 12-15° API and Sparky net oil pay ranges from one to six metres.
Below is an example of the Sparky reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Waseca Rex DD 191/09-36-051-28W3/0
Sparky Formation
Sparky Formation
GP Formation
The GP Formation is found at depths of approximately 465-500 metres TVD at Tangleflags. Oil produced from the GP is approximately 12-15° API and GP net oil pay ranges from one to five metres thick.
Below is an example of the GP reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The GP Formation is found at depths of approximately 465-500 metres TVD at Tangleflags. Oil produced from the GP is approximately 12-15° API and GP net oil pay ranges from one to five metres thick.
Below is an example of the GP reservoir on West Lake’s land at Tangleflags. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Waseca Tangleflags North 111/08-11-052-25W3/0
GP Formation
GP Formation
Tangleflags Facilities
At Tangleflags, the Company owns multiple single well batteries and two disposal plants at 09-11-052-25W3 and 12-30-052-25W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Tangleflags LMR as of April 28, 2022
Tangleflags Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Tangleflags property contained remaining proven plus probable reserves of 441,000 barrels of oil, with an estimated net present value of $5.5 million using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Tangleflags property contained remaining proven plus probable reserves of 441,000 barrels of oil, with an estimated net present value of $5.5 million using forecast pricing at a 10% discount.
Tangleflags Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
LASHBURN
Township 47-49, Range 24-26 W3
At Lashburn, West Lake holds an average 91% working interest in approximately 12 sections of land and royalty interests in three quarter sections of land.
Production from Lashburn net to West Lake for the first quarter of 2022 averaged approximately 101 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $47,000 per month, or $564,000 on an annualized basis.
At Lashburn, West Lake holds an average 91% working interest in approximately 12 sections of land and royalty interests in three quarter sections of land.
Production from Lashburn net to West Lake for the first quarter of 2022 averaged approximately 101 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $47,000 per month, or $564,000 on an annualized basis.
Lashburn, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Lashburn Geology
The Company has identified upside drilling and recompletion potential in the Rex, Lloydminster, Colony, McLaren and Sparky formations on its land at Lashburn. The Company has two probable undeveloped horizontal drilling locations booked at Lashburn. West Lake has also identified five unbooked horizontal drilling locations as well as 11 recompletion opportunities.
Rex Formation
The Rex Formation is found at depths of approximately 565-570 metres TVD at Lashburn. Oil produced from the Rex is approximately 11-13° API and Rex net oil pay ranges from one to five metres thick.
Below is an example of the Rex reservoir on West Lake’s land at Lashburn. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified upside drilling and recompletion potential in the Rex, Lloydminster, Colony, McLaren and Sparky formations on its land at Lashburn. The Company has two probable undeveloped horizontal drilling locations booked at Lashburn. West Lake has also identified five unbooked horizontal drilling locations as well as 11 recompletion opportunities.
Rex Formation
The Rex Formation is found at depths of approximately 565-570 metres TVD at Lashburn. Oil produced from the Rex is approximately 11-13° API and Rex net oil pay ranges from one to five metres thick.
Below is an example of the Rex reservoir on West Lake’s land at Lashburn. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emergo Forest Bank 111/10-29-049-24W3/0
Rex Formation
Rex Formation
Lloydminster Formation
The Lloydminster Formation is found at depths of approximately 590-600 metres TVD at Lashburn. Oil produced from the Lloydminster is approximately 14-16° API and Lloydminster net oil pay ranges from one to three metres thick.
Below is an example of the Lloydminster reservoir on West Lake’s land at Lashburn. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Lloydminster Formation is found at depths of approximately 590-600 metres TVD at Lashburn. Oil produced from the Lloydminster is approximately 14-16° API and Lloydminster net oil pay ranges from one to three metres thick.
Below is an example of the Lloydminster reservoir on West Lake’s land at Lashburn. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emergo Forest Bank 111/10-29-049-24W3/0
Lloydminster Formation
Lloydminster Formation
Sparky Formation
The Sparky Formation is found at depths of approximately 550-560 metres TVD at Lashburn. Oil produced from the Sparky is approximately 10-12° API and Sparky net oil pay ranges from one to four metres thick.
Below is an example of the Sparky reservoir on West Lake’s land at Lashburn. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Sparky Formation is found at depths of approximately 550-560 metres TVD at Lashburn. Oil produced from the Sparky is approximately 10-12° API and Sparky net oil pay ranges from one to four metres thick.
Below is an example of the Sparky reservoir on West Lake’s land at Lashburn. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
CNRL Et Al Lashburn West 101/03-11-048-25W3/0
Sparky Formation
Sparky Formation
Lashburn Facilities
At Lashburn, the Company owns multiple single well batteries. The Company may be interested in retaining the central treating and rail facility at 15-07-048-25W3 and would look to negotiate the inclusion or exclusion of such facility depending on offers received. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Lashburn LMR as of April 28, 2022
Lashburn Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Lashburn property contained remaining proven plus probable reserves of 362,000 barrels of oil, with an estimated net present value of $327,000 using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Lashburn property contained remaining proven plus probable reserves of 362,000 barrels of oil, with an estimated net present value of $327,000 using forecast pricing at a 10% discount.
Lashburn Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
MERVIN
Township 47-52, Range 19-22 W3
At Mervin, West Lake holds mainly 100% working interests in approximately eight sections of land.
Production from Mervin net to West Lake for the first quarter of 2022 averaged approximately 44 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $36,000 per month, or $434,000 on an annualized basis.
At Mervin, West Lake holds mainly 100% working interests in approximately eight sections of land.
Production from Mervin net to West Lake for the first quarter of 2022 averaged approximately 44 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $36,000 per month, or $434,000 on an annualized basis.
Mervin, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Mervin Geology
The Company has identified drilling upside and recompletion potential in the Waseca Formation on its land at Mervin. West Lake has identified seven unbooked vertical drilling locations as well as three recompletion opportunities.
Waseca Formation
The Waseca Formation is found at depths of approximately 480-490 metres TVD at Mervin. Oil produced from the Waseca is approximately 11-13° API and Waseca net oil pay ranges from two to eight metres thick.
Below is an example of the Waseca reservoir on West Lake’s land at Mervin. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified drilling upside and recompletion potential in the Waseca Formation on its land at Mervin. West Lake has identified seven unbooked vertical drilling locations as well as three recompletion opportunities.
Waseca Formation
The Waseca Formation is found at depths of approximately 480-490 metres TVD at Mervin. Oil produced from the Waseca is approximately 11-13° API and Waseca net oil pay ranges from two to eight metres thick.
Below is an example of the Waseca reservoir on West Lake’s land at Mervin. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Avalon Westhazel 111/09-24-050-22W3/0
Waseca Formation
Waseca Formation
Mervin Facilities
At Mervin, the Company owns multiple single well batteries and two disposal plants at 10-04-051-21W3 and 07-22-050-22W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Mervin LMR as of April 28, 2022
Mervin Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Mervin property contained remaining proven plus probable reserves of 187,000 barrels of oil, with an estimated net present value of $2.5 million using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Mervin property contained remaining proven plus probable reserves of 187,000 barrels of oil, with an estimated net present value of $2.5 million using forecast pricing at a 10% discount.
Mervin Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
PIKES PEAK
Township 49-50, Range 22-23 W3
At Pikes Peak, West Lake holds an average 99% working interest in approximately three sections of land.
Production from Pikes Peak net to West Lake for the first quarter of 2022 averaged approximately 54 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $88,000 per month, or $1.1 million on an annualized basis.
At Pikes Peak, West Lake holds an average 99% working interest in approximately three sections of land.
Production from Pikes Peak net to West Lake for the first quarter of 2022 averaged approximately 54 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately $88,000 per month, or $1.1 million on an annualized basis.
Pikes Peak, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Pikes Peak Facilities
At Pikes Peak, the Company owns an injection facility at 11-04-050-23W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Pikes Peak LMR as of April 28, 2022
Pikes Peak Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Pikes Peak property contained remaining proven plus probable reserves of 61,000 barrels of oil, with an estimated net present value of $1.6 million using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Pikes Peak property contained remaining proven plus probable reserves of 61,000 barrels of oil, with an estimated net present value of $1.6 million using forecast pricing at a 10% discount.
Pikes Peak Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
EPPING
Township 48, Range 26-28 W3
At Epping, West Lake holds an average 97% working interest in 4.25 sections of land.
Production from Epping net to West Lake for the first quarter of 2022 averaged approximately 21 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately ($18,000) per month, or ($220,000) on an annualized basis.
At Epping, West Lake holds an average 97% working interest in 4.25 sections of land.
Production from Epping net to West Lake for the first quarter of 2022 averaged approximately 21 barrels of oil per day.
Net operating income from the property for the first quarter of 2022 averaged approximately ($18,000) per month, or ($220,000) on an annualized basis.
Epping, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Epping Geology
The Company has identified drilling upside and recompletion potential in the Sparky Formation on its land at Epping. West Lake has identified waterflood potential in the Sparky Formation.
Sparky Formation
A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Epping Facilities
The Company has identified drilling upside and recompletion potential in the Sparky Formation on its land at Epping. West Lake has identified waterflood potential in the Sparky Formation.
Sparky Formation
A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Epping Facilities
At Epping, the Company owns multiple single well batteries and one disposal plant at 01-24-046-28W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Epping LMR as of April 28, 2022
Epping Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Epping property contained remaining proven plus probable reserves of 1.2 million barrels of oil, with an estimated net present value of $6.1 million using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Epping property contained remaining proven plus probable reserves of 1.2 million barrels of oil, with an estimated net present value of $6.1 million using forecast pricing at a 10% discount.
Epping Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
FREEMONT
Township 44-45, Range 24-25 W3
At Freemont, West Lake holds an average 99% working interest in approximately six sections of land, as well as a minor royalty interest.
There is currently no production associated with the property. The Freemont property was shut-in in October 2019.
At Freemont, West Lake holds an average 99% working interest in approximately six sections of land, as well as a minor royalty interest.
There is currently no production associated with the property. The Freemont property was shut-in in October 2019.
Freemont, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Freemont Geology
The Company has identified drilling upside potential in the Colony Formation on its land at Freemont. West Lake has identified two unbooked vertical drilling locations at Freemont.
Lower Colony Formation
The Lower Colony Formation is found at depths of approximately 605-615 metres TVD at Freemont. Oil produced from the Lower Colony is approximately 12-15° API and Lower Colony net oil pay ranges from one to two metres.
Below is an example of the Lower Colony reservoir on West Lake’s land at Freemont. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Colony Formation
The Colony Formation is found at depths of approximately 605-615 metres TVD at Freemont. Oil produced from the Colony is approximately 13-15° API and Colony net oil pay ranges from five to ten metres thick.
Below is an example of the Colony reservoir on West Lake’s land at Freemont. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified drilling upside potential in the Colony Formation on its land at Freemont. West Lake has identified two unbooked vertical drilling locations at Freemont.
Lower Colony Formation
The Lower Colony Formation is found at depths of approximately 605-615 metres TVD at Freemont. Oil produced from the Lower Colony is approximately 12-15° API and Lower Colony net oil pay ranges from one to two metres.
Below is an example of the Lower Colony reservoir on West Lake’s land at Freemont. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Colony Formation
The Colony Formation is found at depths of approximately 605-615 metres TVD at Freemont. Oil produced from the Colony is approximately 13-15° API and Colony net oil pay ranges from five to ten metres thick.
Below is an example of the Colony reservoir on West Lake’s land at Freemont. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Husky Freemont 111/15-32-044-24W3/0
Colony Formation
Colony Formation
Freemont Facilities
At Freemont, the Company owns an injection plant at 01-34-044-24W3, consisting of six 200 m3/d injector wells and two 600 m3/d disposal wells. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Freemont LMR as of April 28, 2022
Freemont Reserves
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Freemont property contained remaining proven plus probable reserves of 90,000 barrels of oil, with an estimated net present value of
$639,000 using forecast pricing at a 10% discount.
McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of West Lake’s properties effective December 31, 2021 as part of the Company’s year-end reporting (the “McDaniel Report”). The McDaniel Report was then mechanically updated by McDaniel to an effective date of March 31, 2022 using an average of GLJ Ltd., McDaniel and Sproule Associates Limited’s April 1, 2022 forecast pricing.
McDaniel estimates that, as of March 31, 2022, the Freemont property contained remaining proven plus probable reserves of 90,000 barrels of oil, with an estimated net present value of
$639,000 using forecast pricing at a 10% discount.
Freemont Well List
Click here to download the complete well list in Excel.
Click here to download the complete well list in Excel.
MAIDSTONE
Township 45-47, Range 22-24 W3
At Maidstone, West Lake holds a 100% working interest in approximately four sections of land. There is currently no production associated with the property.
At Maidstone, West Lake holds a 100% working interest in approximately four sections of land. There is currently no production associated with the property.
Maidstone, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Maidstone Geology
The Company has identified drilling upside potential in the Cummings Formation on its land at Maidstone. West Lake has identified two unbooked horizontal drilling locations on its land at Maidstone.
Cummings Formation
The Cummings Formation is found at depths of approximately 560-570 metres and 650-660 metres TVD on different sections of its land at Maidstone. Oil produced from the Cummings is approximately 12-15° API and Cummings net oil pay ranges from one to five metres.
Below is an example of the Cummings reservoir on West Lake’s land at Maidstone. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified drilling upside potential in the Cummings Formation on its land at Maidstone. West Lake has identified two unbooked horizontal drilling locations on its land at Maidstone.
Cummings Formation
The Cummings Formation is found at depths of approximately 560-570 metres and 650-660 metres TVD on different sections of its land at Maidstone. Oil produced from the Cummings is approximately 12-15° API and Cummings net oil pay ranges from one to five metres.
Below is an example of the Cummings reservoir on West Lake’s land at Maidstone. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emerge Maidstone 111/09-15-047-23W3/0
Cummings Formation
Cummings Formation
Maidstone Facilities
West Lake does not own any major facilities at Maidstone.
Maidstone LMR as of April 28, 2022
Maidstone Reserves
The Maidstone property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Maidstone Well List
Click here to download the complete well list in Excel.
The Maidstone property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Maidstone Well List
Click here to download the complete well list in Excel.
EAR LAKE
Township 37-39, Range 23-25 W3
At Ear Lake, West Lake holds a 100% working interest in approximately 25 sections of land. There is currently no production associated with the property.
At Ear Lake, West Lake holds a 100% working interest in approximately 25 sections of land. There is currently no production associated with the property.
Ear Lake, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Ear Lake Geology
The Company has identified drilling upside and recompletion potential in the McLaren and Waseca formations on its land at Ear Lake. West Lake has identified 11 unbooked vertical drilling locations at Ear Lake.
McLaren Formation
The McLaren Formation is found at depths of approximately 670-680 metres TVD at Ear Lake. Oil produced from the McLaren is approximately 11-17° API and McLaren net oil pay ranges from one to four metres.
Below is an example of the McLaren reservoir on West Lake’s land at Ear Lake. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified drilling upside and recompletion potential in the McLaren and Waseca formations on its land at Ear Lake. West Lake has identified 11 unbooked vertical drilling locations at Ear Lake.
McLaren Formation
The McLaren Formation is found at depths of approximately 670-680 metres TVD at Ear Lake. Oil produced from the McLaren is approximately 11-17° API and McLaren net oil pay ranges from one to four metres.
Below is an example of the McLaren reservoir on West Lake’s land at Ear Lake. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emerge Reward 111/04-34-038-24W3/0
McLaren Formation
McLaren Formation
Waseca Formation
The Waseca Formation is found at depths of approximately 680-690 metres TVD at Ear Lake. Oil produced from the Waseca is approximately 12-14° API and Waseca net oil pay ranges from one to five metres.
Below is an example of the Waseca reservoir on West Lake’s land at Ear Lake. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Waseca Formation is found at depths of approximately 680-690 metres TVD at Ear Lake. Oil produced from the Waseca is approximately 12-14° API and Waseca net oil pay ranges from one to five metres.
Below is an example of the Waseca reservoir on West Lake’s land at Ear Lake. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Emerge Ear Lake DD 111/11-07-038-23W3/0
Waseca Formation
Waseca Formation
Ear Lake Facilities
At Ear Lake, the Company owns two injection facilities at 13-05-038-23W3 and 13-07-038-23W3. A complete description of the facilities will be found in the virtual data room for parties that execute a confidentiality agreement.
Ear Lake LMR as of April 28, 2022
Ear Lake Reserves
The Ear Lake property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Ear Lake Well List
Click here to download the complete well list in Excel.
The Ear Lake property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Ear Lake Well List
Click here to download the complete well list in Excel.
MANITOU
Township 40-43, Range 23-25 W3
At Manitou, West Lake holds a 100% working interest in approximately nine sections of land. There is currently no production associated with the property.
Strathcona Resources Ltd. owns the petroleum rights in approximately three sections of land in Township 43 Range 25W3 at Manitou and they are holding West Lake’s interest in the natural gas rights in various sections in trust.
At Manitou, West Lake holds a 100% working interest in approximately nine sections of land. There is currently no production associated with the property.
Strathcona Resources Ltd. owns the petroleum rights in approximately three sections of land in Township 43 Range 25W3 at Manitou and they are holding West Lake’s interest in the natural gas rights in various sections in trust.
Manitou, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Manitou Geology
The Company has identified drilling upside potential in the Cummings Formation on its land at Manitou. The Company has identified two unbooked horizontal drilling locations on its land at Manitou.
Cummings Formation
The Cummings Formation is found at depths of approximately 705-715 metres TVD at Manitou. Oil produced from the Cummings is approximately 12-15° API and Cummings net oil pay ranges from one to four metres.
Below is an example of the Cummings reservoir on West Lake’s land at Manitou. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Long Run Kerrobert 111/05-21-041-25W3/0
Cummings Formation
Cummings Formation
Manitou Facilities
West Lake does not own any major facilities at Manitou.
Manitou LMR as of April 28, 2022
Manitou Reserves
The Manitou property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Manitou Well List
Click here to download the complete well list in Excel.
The Manitou property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Manitou Well List
Click here to download the complete well list in Excel.
MACKLIN
Township 40, Range 27-28 W3
At Macklin, West Lake holds a 100% working interest in 2.5 sections of land. There is currently no production associated with the property. The Company has identified one unbooked recompletion opportunity on its land at Macklin.
At Macklin, West Lake holds a 100% working interest in 2.5 sections of land. There is currently no production associated with the property. The Company has identified one unbooked recompletion opportunity on its land at Macklin.
Macklin, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Macklin Facilities
West Lake does not own any major facilities at Macklin.
Macklin LMR as of April 28, 2022
Macklin Reserves
The Macklin property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Macklin Well List
Click here to download the complete well list in Excel.
The Macklin property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Macklin Well List
Click here to download the complete well list in Excel.
MARSDEN
Township 44-45, Range 27-28 W3
At Marsden, West Lake holds a 100% working interest in P&NG rights from surface to the base of the Mannville Group in five LSDs of land. There is currently no production associated with the property.
The Company has identified one unbooked recompletion opportunity on its land at Marsden.
At Marsden, West Lake holds a 100% working interest in P&NG rights from surface to the base of the Mannville Group in five LSDs of land. There is currently no production associated with the property.
The Company has identified one unbooked recompletion opportunity on its land at Marsden.
Marsden, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Marsden Facilities
West Lake does not own any major facilities at Marsden.
Marsden LMR as of April 28, 2022
Marsden Reserves
The Marsden property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Marsden Well List
Click here to download the complete well list in Excel.
The Marsden property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Marsden Well List
Click here to download the complete well list in Excel.
RUSH LAKE
Township 47, Range 21 W3
The Company holds a 100% working interest in two LSDs of land at Rush Lake. There is currently no production associated with the property.
The Company holds a 100% working interest in two LSDs of land at Rush Lake. There is currently no production associated with the property.
Rush Lake, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Rush Lake Facilities
West Lake does not own any major facilities at Rush Lake.
Rush Lake LMR as of April 28, 2022
Rush Lake Reserves
The Rush Lake property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Rush Lake Well List
Click here to download the complete well list in Excel.
The Rush Lake property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Rush Lake Well List
Click here to download the complete well list in Excel.
PRIMATE
Township 37-38, Range 26-28 W3
At Primate, West Lake holds a 100% working interest in approximately eight sections of land. The Company collects royalties on four wells though a seismic option agreement with Hapmtons Oil Ltd.
There is currently no production associated with the property.
At Primate, West Lake holds a 100% working interest in approximately eight sections of land. The Company collects royalties on four wells though a seismic option agreement with Hapmtons Oil Ltd.
There is currently no production associated with the property.
Primate, Saskatchewan
Group Plot of West Lake's Heavy Oil Wells
Primate Geology
The Company has identified drilling upside and recompletion potential in the McLaren and Cummings formations on its land at Primate. West Lake has also identified 12 unbooked horizontal drilling locations at Primate. The unbooked locations at Primate are planned as multi-leg open hole drilling.
McLaren Formation
The McLaren Formation is found at depths of approximately 710-760 metres TVD at Primate. Oil produced from the McLaren is approximately 11-15° API and McLaren net oil pay ranges from two to eight metres.
Below is an example of the McLaren reservoir on West Lake’s land at Primate. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Company has identified drilling upside and recompletion potential in the McLaren and Cummings formations on its land at Primate. West Lake has also identified 12 unbooked horizontal drilling locations at Primate. The unbooked locations at Primate are planned as multi-leg open hole drilling.
McLaren Formation
The McLaren Formation is found at depths of approximately 710-760 metres TVD at Primate. Oil produced from the McLaren is approximately 11-15° API and McLaren net oil pay ranges from two to eight metres.
Below is an example of the McLaren reservoir on West Lake’s land at Primate. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
Sphere Primate 111/14-34-037-27W3/0
McLaren Formation
McLaren Formation
Cummings Formation
The Cummings Formation is found at depths of approximately 820-825 metres TVD at Primate. Oil produced from the Cummings is approximately 11-15° API and Cummings net oil pay ranges from one to two metres.
Below is an example of the Cummings reservoir on West Lake’s land at Primate. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
The Cummings Formation is found at depths of approximately 820-825 metres TVD at Primate. Oil produced from the Cummings is approximately 11-15° API and Cummings net oil pay ranges from one to two metres.
Below is an example of the Cummings reservoir on West Lake’s land at Primate. A presentation detailing all of the upside on the Company’s lands will be found in the virtual data room for parties that execute a confidentiality agreement.
PVR Denzil 111/15-31-037-26W3/0
Cummings Formation
Cummings Formation
Primate Facilities
West Lake does not own any major facilities at Primate.
Primate LMR as of April 28, 2022
Primate Reserves
The Primate property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Primate Well List
Click here to download the complete well list in Excel.
The Primate property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Primate Well List
Click here to download the complete well list in Excel.
HEAVY OIL MINORS
Township 05-41, Range 18-27 W3
West Lake holds a 100% working interest in seven wells and a 40% working interest in one non-operated well located throughout Saskatchewan which have been named the Heavy Oil Minors property.
There is currently no production associated with these interests.
West Lake holds a 100% working interest in seven wells and a 40% working interest in one non-operated well located throughout Saskatchewan which have been named the Heavy Oil Minors property.
There is currently no production associated with these interests.
Heavy Oil Minors LMR as of April 28, 2022
Heavy Oil Minors Reserves
The Heavy Oil Minors property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Heavy Oil Minors Well List
Click here to download the complete well list in Excel.
The Heavy Oil Minors property was evaluated as part of the Company’s year-end reserve evaluation and no reserves were assigned.
Heavy Oil Minors Well List
Click here to download the complete well list in Excel.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday, June 23, 2022. Preference will be given to offers to acquire all of the Properties on a white map basis; however, offers may be considered for individual properties.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude
transactions with the parties submitting the most acceptable proposals at the conclusion of the process.
transactions with the parties submitting the most acceptable proposals at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday June 23, 2022.
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: summary land information, LMR information, the McDaniel Report, most recent net operations summary, upside presentations and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Properties please contact Tom Pavic, Ben Rye or Grazina Palmer at 403.266.6133.