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Properties / Long Fortune Petroleum (SK) Corporation
Long Fortune Petroleum (SK) Corporation
Property DivestitureBid Deadline: November 17, 2022
12:00 PM
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OVERVIEW
Long Fortune Petroleum (SK) Corporation (“Long Fortune” 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 Moosomin area of southeastern Saskatchewan (the “Property”).
Overview Map Showing the Location of the Divestiture Property
MOOSOMIN
Township 14, Range 30 W1
At Moosomin, Long Fortune holds a 100% working interest in the 111/09-14-014-30W1/0 and 121/09-14-014-30W1/0 oil wells which produce from the Gravelbourg Formation and the suspended oil well 101/10-14-014-30W1/0. Long Fortune also holds a 20% working interest in the 131/05-13-014-30W1/0 oil well operated by Dawn Energy Inc. which produces oil from the Gravelbourg Formation at a rate of approximately six barrels of oil per day gross.
Long Fortune holds a 100% working interest in the water disposal well Long Fortune Moosomin 121/15-14-014-30W1/02. The Company injects salt water at a rate of approximately 400 barrels of water per day into the Mannville Group.
Daily production net to Long Fortune for the second quarter of 2022 was approximately 14 barrels of oil per day.
Operating income net to Long Fortune for the second quarter of 2022 averaged approximately $32,700 per month, or approximately $392,400 on an annualized basis.
At Moosomin, Long Fortune holds a 100% working interest in the 111/09-14-014-30W1/0 and 121/09-14-014-30W1/0 oil wells which produce from the Gravelbourg Formation and the suspended oil well 101/10-14-014-30W1/0. Long Fortune also holds a 20% working interest in the 131/05-13-014-30W1/0 oil well operated by Dawn Energy Inc. which produces oil from the Gravelbourg Formation at a rate of approximately six barrels of oil per day gross.
Long Fortune holds a 100% working interest in the water disposal well Long Fortune Moosomin 121/15-14-014-30W1/02. The Company injects salt water at a rate of approximately 400 barrels of water per day into the Mannville Group.
Daily production net to Long Fortune for the second quarter of 2022 was approximately 14 barrels of oil per day.
Operating income net to Long Fortune for the second quarter of 2022 averaged approximately $32,700 per month, or approximately $392,400 on an annualized basis.
Moosomin, Saskatchewan
Gross Production Group Plot of Long Fortune's Oil & Natural Gas Wells
Bakken Formation
Long Fortune estimates the Bakken Formation at Moosomin to contain over four million barrels of oil reserves with estimated recoverable reserves of about 1.2 million barrels of oil. Regionally, the Bakken is laterally distributed evenly and is independent of stratigraphy structure and has very economic development potential.
There are more than 300 wells producing from Bakken formation with the nearest production about 10 kilometers away to the southeast of Long Fortune’s interests at Moosomin. The average daily production is in the range of 30 – 100 barrels per well.
All four of Long Fortune’s wells have been drilled through the Bakken formation showing large net pay and a significant natural gas indicator. Brown oil staining can be seen on the drilling cut from the interval 690 metres KB to 700 metres KB in the well Long Fortune Moosomin 101/10-14-14-30W1/0. Further details on the geology will be provided in the confidential virtual data room for parties that execute a confidentially agreement.
The following cross-section compares the 101/10-14-14-30W1/0 well to the well CPEC Red Jacket 41/12-03-15-31W1/0 well, which has cumulative oil production of over 70,000 barrels. Both wells have similar porosity and resistivity logs. The producing zone in Long Fortune’s 101/10-14 well is about 10 metres higher than that of the 41/12-03 well. Long Fortune believes this indicates that the performance of well 101/10-14 will be better than the 41/12-03 well.
Long Fortune estimates the Bakken Formation at Moosomin to contain over four million barrels of oil reserves with estimated recoverable reserves of about 1.2 million barrels of oil. Regionally, the Bakken is laterally distributed evenly and is independent of stratigraphy structure and has very economic development potential.
There are more than 300 wells producing from Bakken formation with the nearest production about 10 kilometers away to the southeast of Long Fortune’s interests at Moosomin. The average daily production is in the range of 30 – 100 barrels per well.
All four of Long Fortune’s wells have been drilled through the Bakken formation showing large net pay and a significant natural gas indicator. Brown oil staining can be seen on the drilling cut from the interval 690 metres KB to 700 metres KB in the well Long Fortune Moosomin 101/10-14-14-30W1/0. Further details on the geology will be provided in the confidential virtual data room for parties that execute a confidentially agreement.
The following cross-section compares the 101/10-14-14-30W1/0 well to the well CPEC Red Jacket 41/12-03-15-31W1/0 well, which has cumulative oil production of over 70,000 barrels. Both wells have similar porosity and resistivity logs. The producing zone in Long Fortune’s 101/10-14 well is about 10 metres higher than that of the 41/12-03 well. Long Fortune believes this indicates that the performance of well 101/10-14 will be better than the 41/12-03 well.
Moosomin Seismic
The Company has an interest in the Fleming North 3D seismic data relating to the Moosomin property.
Moosomin Facilities
The Company has a 100% working interest in a water disposal well at 121/15-14-014-30W1/02.
Moosomin Marketing
Long Fortune has a 30-day evergreen marketing agreement in place with Kingston Marketing Limited. Oil is sold at the Kingston Cromer Trucking Terminal from the 15-14-014-30W1 delivery point.
Moosomin Reserves
Long Fortune does not have a third-party reserve evaluation of the Moosomin property.
Moosomin LMR
As of August 28, 2022, Long Fortune’s net deemed asset value for the Moosomin property was ($24,656) (deemed assets of $288,504 and deemed liabilities of $313,160), with an LMR ratio of 0.92.
The Company has an interest in the Fleming North 3D seismic data relating to the Moosomin property.
Moosomin Facilities
The Company has a 100% working interest in a water disposal well at 121/15-14-014-30W1/02.
Moosomin Marketing
Long Fortune has a 30-day evergreen marketing agreement in place with Kingston Marketing Limited. Oil is sold at the Kingston Cromer Trucking Terminal from the 15-14-014-30W1 delivery point.
Moosomin Reserves
Long Fortune does not have a third-party reserve evaluation of the Moosomin property.
Moosomin LMR
As of August 28, 2022, Long Fortune’s net deemed asset value for the Moosomin property was ($24,656) (deemed assets of $288,504 and deemed liabilities of $313,160), with an LMR ratio of 0.92.
At Moosomin, $170,840 of the total deemed liabilities is associated with a multi well oil battery located at 15-14-014-30W1.
Moosomin Well List
Click here to download complete well list in Excel.
Moosomin Well List
Click here to download 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 17, 2022.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday November 17, 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 information relating to this opportunity should execute the Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, email (brye@sayeradvisors.com) or fax (403.266.4467).Included in the confidential information is the following: summary land information, LMR information, most recent net operations summary and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Property please contact Ben Rye, Tom Pavic or Sydney Birkett at 403.266.6133.