Offering Details
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Under Review / 101091127 Saskatchewan Ltd.
101091127 Saskatchewan Ltd.
Property DivestitureBid Deadline: April 6, 2023
12:00 PM
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OVERVIEW
101091127 Saskatchewan Ltd. (“101091127” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its Fee Title and lessor royalty interests located in the Northgate, Wapella and Lumsden areas of southeastern Saskatchewan (the “Properties”).
Average daily royalty production net to 101091127 from the Properties for the quarter ended December 2022 was approximately 45 boe/d, consisting of 34 barrels of oil and natural gas liquids and 63 Mcf/d of natural gas.
Royalty income net to 101091127 from the Properties for the quarter ended December 31, 2022 was approximately $350,000, or $1.4 million on an annualized basis.
Average daily royalty production net to 101091127 from the Properties for the quarter ended December 2022 was approximately 45 boe/d, consisting of 34 barrels of oil and natural gas liquids and 63 Mcf/d of natural gas.
Royalty income net to 101091127 from the Properties for the quarter ended December 31, 2022 was approximately $350,000, or $1.4 million on an annualized basis.
Overview Map Showing the Locations of the Divestiture Properties
NORTHGATE
Township 1, Range 3 W2
At Northgate, the Company holds Fee Simple Titles to a 2/3 interest in all mines and minerals in 10 LSDs of land, namely; the SE quarter of Section 09-001-03W2, the northwest quarter of Section 09-001-03W2, LSD 9 of Section 09-001-03W2 and LSD 10 of Section 09-001-03W2 (the “Section 9 Lands”).
The Section 9 Lands are leased to Vermilion Energy Inc. The Company has a lessor royalty rate of 18% (clear of deductions) applicable to the Section 9 lands on which there are several oil wells producing from the Midale and Frobisher formations. Vermilion drilled three wells on the Section 9 Lands from November 2021 through August 2022. The Company has pooling agreements in place with Vermilion for the three wells on the Section 9 Lands.
Average daily royalty production net to 101091127 from Northgate for the quarter ended December 2022 was approximately 45 boe/d, consisting of 34 barrels of oil and natural gas liquids and 63 Mcf/d of natural gas.
Royalty income net to 101091127 from Northgate for the quarter ended December 31, 2022 was approximately $350,000, or $1.4 million on an annualized basis.
There are two additional wells on the Company’s land at 91/16-09-001-03W2 and 92/16-09-001-03W2 which produced from the Bakken and Torquay formations prior to being shut-in in June 2020.
The leases on the Section 9 Lands contain a clause providing for shallow and deep rights reversion to the Company, along with other conditions noted on the addendums attached to the leases. The Bakken and Torquay rights will be available for lease in April 2023 and the undeveloped Midale and Frobisher rights would be available for lease in April 2024 if no further wells are drilled.
At Northgate, the Company holds Fee Simple Titles to a 2/3 interest in all mines and minerals in 10 LSDs of land, namely; the SE quarter of Section 09-001-03W2, the northwest quarter of Section 09-001-03W2, LSD 9 of Section 09-001-03W2 and LSD 10 of Section 09-001-03W2 (the “Section 9 Lands”).
The Section 9 Lands are leased to Vermilion Energy Inc. The Company has a lessor royalty rate of 18% (clear of deductions) applicable to the Section 9 lands on which there are several oil wells producing from the Midale and Frobisher formations. Vermilion drilled three wells on the Section 9 Lands from November 2021 through August 2022. The Company has pooling agreements in place with Vermilion for the three wells on the Section 9 Lands.
Average daily royalty production net to 101091127 from Northgate for the quarter ended December 2022 was approximately 45 boe/d, consisting of 34 barrels of oil and natural gas liquids and 63 Mcf/d of natural gas.
Royalty income net to 101091127 from Northgate for the quarter ended December 31, 2022 was approximately $350,000, or $1.4 million on an annualized basis.
There are two additional wells on the Company’s land at 91/16-09-001-03W2 and 92/16-09-001-03W2 which produced from the Bakken and Torquay formations prior to being shut-in in June 2020.
The leases on the Section 9 Lands contain a clause providing for shallow and deep rights reversion to the Company, along with other conditions noted on the addendums attached to the leases. The Bakken and Torquay rights will be available for lease in April 2023 and the undeveloped Midale and Frobisher rights would be available for lease in April 2024 if no further wells are drilled.
Vermilion operates several wells in the Northgate Midale Pool offsetting the Company’s Section 9 Lands at Northgate, as shown on the following plat. Additional production in the area is from the Torquay and Frobisher formations.
The three wells on the Company’s Section 9 Lands at 01/04-09-001-03W2, 01/05-09-001-03W2 and 02/05-09-001-03W2 are the most recent wells drilled in the area.
Northgate, Saskatchewan
Gross Production Group Plot of 101091127's Oil & Natural Gas Royalty Interest Wells
Gross Production Group Plot of 101091127's Oil & Natural Gas Royalty Interest Wells
Northgate LMR
The Company does not operate any wells or facilities related to the Properties.
Northgate Reserves
The Company does not have a reserve evaluation related to the Properties.
Northgate Facilities
101091127 does not have an interest in any facilities related to the Properties.
Northgate Well List
Click here to download the complete well list in Excel.
WAPELLA
Township 16, Range 1 W2
In the Wapella area, 101091127 holds an undivided 1/2 interest in all mines and minerals in the northeast quarter of Section 28-016-01W2 which is currently unleased.
Offsetting the Company’s lands at Wapella, several operators, including Rake Resources Ltd., Vermilion, and Whitecap Resources Inc. have offsetting oil and natural gas production from the Red Jacket (Shaunavon) and Mannville formations, as shown on the following map.
In the Wapella area, 101091127 holds an undivided 1/2 interest in all mines and minerals in the northeast quarter of Section 28-016-01W2 which is currently unleased.
Offsetting the Company’s lands at Wapella, several operators, including Rake Resources Ltd., Vermilion, and Whitecap Resources Inc. have offsetting oil and natural gas production from the Red Jacket (Shaunavon) and Mannville formations, as shown on the following map.
The following logs from the well Rake Burrows 41/08-02-16-01W2/0 show the Rocanville, Moosomin and Burrows members of the Red Jacket Formation in southeastern Saskatchewan. The Red Jacket is the lateral equivalent to the Upper Shaunavon Formation. Nomenclature changes are due to Lithofacies changes in these units which make it difficult to correlate the Shaunavon Formation and the upper member of the Gravelbourg Formation into southeastern Saskatchewan.
The well Rake Burrows E 41/08-02-016-01W2/02 is producing from the Red Jacket Formation at a rate of approximately seven barrels of oil per day.
LUMSDEN
Township 21, Range 21 W2At Lumsden, 101091127 holds an undivided 1/2 interest in all mines and minerals in the north half of Section 18-021-21W2 and the southwest quarter of Section 19-021-21W2 which is currently unleased.
The Company’s land at Lumsden is adjacent to Last Mountain Lake, and offsetting potash production at K+S Potash Canada’s Bethune Mine, and is prospective for potash and other brine potential.
Several companies, including Buffalo Potash Corp. and K+S have subsurface mineral permits for the production of potash in the Prairie Evaporite Formation nearby.
PROCESS & TIMELIME
Sayer Energy Advisors is accepting cash offers to acquire the Properties until 12:00 pm on Thursday April 6, 2023.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday April 6, 2023.
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 Properties 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.
CONFIDENTIALITLY 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 (brye@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: summary land information, lease and pooling agreements, most recent net royalty income statements and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Properties please contact Ben Rye, Tom Pavic or Sydney Birkett at 403.266.6133.