Bearspaw Petroleum Ltd. Crossfield/Chestermere Asset Sale

DivestituresInc.
A New Vision of Proper ty and Corporate Acquisitions and Divestitures
Bearspaw Petroleum Ltd. Crossfield/Chestermere Asset Sale
94-O
94-K
2M
3M
T110
94-H
T100
94-B
93-O
T90
T80
93-P
93-J
T70
Colum 93-I
bia
T60
T50
Edmonton
T50
T40
T30
Crossfield/Chestermere
Calgary
T20
Regina
T10
R10
R20
R10
R20
R10
R20
Manitoba
Saskatchewan
Alberta
R10
93-K
British
94-G
R20
93-N
T120
94-I
R10
94-C
94-P
94-J
94-F
L T D .
4M
94-N
5M
6M
P E T R O L E U M
DivestituresInc.
A New Vision of Property and Corporate Acquisitions and Divestitures
Timing:
Review of Documents
Bid Deadline:
April 28, 2014 to May 28, 2014
May 28, 2014 4:00 p.m. MDT
For further information contact:
Mr. Arno A. Keller, President
Cell: 403 860 8692
Email: [email protected]
Mr. Steve Henrich, Managing Director
Cell: 403 874 7801
Email: [email protected]
Mr. Robbie Willmann, B.Sc., Geol.I.T. Geologist
Email: [email protected]
Marketed By:
NRG Divestitures Inc.
Bankers Hall, West Tower
1000, 888 - 3rd Street S.W.
Calgary, Alberta T2P 5C5
Phone: 403 444 5991
Fax: 403 444 6699
www.nrgdivestitures.com
Disclaimer
The marketing materials presented herein, reflect what is thought to be the current and accurate data, provided by the vendor.
In the event that an inaccuracy is found, Bearspaw Petroleum Ltd. or NRG Divestitures Inc. may not be held liable. Included
in the marketing materials are statements based on interpretation and judgement. Anyone reviewing the marketing materials
is encouraged to conduct their own investigations into the subject assets, in order to come to their own interpretations and
conclusions, before proceeding. Bearspaw Petroleum Ltd. reserves the right at it’s sole discretion to accept or reject any or all
offers, and may amend the offering at any time.
Executive Summary
Bearspaw Petroleum Ltd., (Bearspaw) has engaged NRG Divestitures to market its south-central
Alberta Crossfield/Chestermere oil and gas assets.
This package includes two Basal Quartz wells; the 10-02 BQ oil well, and the 11-24 BQ liquids rich gas well,
as well as 50% ownership in the adjacent 7-33 oil battery and water disposal facilities.
The 10-02 BQ oil well has been flow tested at 328 BOE/D, with proved reserves volumetrically estimated to
be 696 Mstb per quarter section. The 11-24 BQ liquids rich gas well was producing until late 2011, at which
point it was shut in due to the shut down of the Balzac gas plant and reconfiguration to the TAQA plant. An
adjacent well producing from a thinner pay interval is producing 715 mcf/d. Proved reserves for the 11-24
well have been volumetrically estimated at 7.2 Bcf per section.
Both wells carry additional up hole potential in the Edmonton Sand, Belly River, and Viking, among other
intervals.
A technical presentation with Bearspaw is available upon signing of the CA.
Bearspaw Petroleum Ltd.
CROSSFIELD/CHESTERMERE
H I G H L I G H T S
P
50% interest in 07-33-023-28W4 oil and water disposal facility
P
Surface lease and access road at 07-09-024-28W4
P
10-02 prospective horizontal oil well, 696 Mstb recoverable oil per
quarter section.
P
11-24 gas well, currently shut-in due to pipeline reconfiguration,
7.2 Bcf GIP/section.
C ROS S FIELD/CHESTERMERE LAN D P LAT
Bearspaw Petroleum Ltd.
RS
GS
CS
22
21
23
20
19
24
21
23
22
24
19
20
21
22
24
23
T25
CS
16
15
14
13
18
17
16
15
14
13
18
17
16
15
14
13
9
10
11
12
7
8
9
10
11
12
7
8
9
10
11
12
4
3
2
1
6
5
4
3
1
6
5
4
3
2
1
CS
2
CS
33
34
35
36
31
32
33
34
35
36
31
32
33
34
35
36
28
27
26
25
30
29
28
27
26
25
30
29
28
27
26
25
21
22
23
24
19
20
23
24
19
20
21
22
23
11-24-24-28W4M
21
22
24
T24
CS
15
14
13
18
17
16
15
14
13
10
11
12
7
8
9
10
11
12
10-02-24-28W4M
16
15
14
13
18
17
16
9
10
11
12
7
8
9
4
3
2
1
6
IP
5
4
3
2
1
6
5
4
3
2
1
MS
7-33-23-28W4M
36
31
32
33
34
35
36
31
32
33
34
35
36
26
25
30
29
28
27
26
25
30
29
28
27
26
25
23
24
19
20
CS
S
21
22
23
24
19
20
21
22
23
24
14
13
33
34
35
28
27
21
22
T23
16
Bearspaw land
15
14
13
18
17
R29
16
15
14
18
17
R28
C R O S S F I E L D / C H E S T E R M E R E L A N D S U M M A R Y
Twp-RgeM
Section
Rights
023-28W4
33
PNG from Base Wabamun to Basement
023-28W4
36
PNG from Surface to Basement
024-28W4
2 (S, NE)
PNG from Surface to Basement
024-28W4
9
PNG below base Elkton excluding NG in Crossfield
024-28W4
9
PNG to Base Elkton
024-28W4
24
NG in Belly River
024-28W4
24 (SW)
NG in Basal Quartz (Excl. CBM)
024-28W4
24 (N, SE)
PNG to Base Mannville
C R O S S F I E L D / C H E S T E R M E R E W E L L
Well Location
Zone
102/10-02-024-28W4/2
Basal Quartz
102/11-24-024-28W4
Basal Quartz
13
S U M M A R Y WI (%)
100
100
GS
CS
16
15
MS
R27W4
Gross Area (ha)
256
256
192
256
256
256
64
192
Lease Type
Freehold
Crown
Crown
Freehold
Freehold
Crown/Freehold
Freehold
Crown
WI (%)
50
100
100
25
50
75 Pooled
100
100
Operator
Bearspaw
Bearspaw
Status
Drilled & Cased
Shut In Gas
Bearspaw Petroleum Ltd.
CROSSFIELD/CHESTERMERE
I S O PA C H M A P B Q N E T PAY
H I G H L I G H T S
Bearspaw Petroleum Ltd.
P
100% interest in oil well
P
Expected 328 Boe/d
P
696 Mstb proved per quarter section
P
50% interest in 07-33-024-28W4
oil facility
T24
10-02 - Uphole Potential
Zone
Depth (m)
Edmonton Sands
616 - 624
687 - 692
Belly River Channel Sand
884 - 900
Belly River Sand
1040 - 1045
Basal Belly River Sand
1050 - 1057
1113 - 1115
Viking Sand
1757 - 1768
Mannville Channel Sand
1927 - 1945
Ostracod Sand
2034 - 2036
T23
R27W4
R28
10-02 BASAL QUARTZ OIL WELL
Bearspaw has 100% interest in the 10-02 Basal Quartz oil well prospect. The well was flow tested and
yielded 206 bbl/d of oil and 730 mcf/d. As such, pipeline licenses have been previously applied for and
approved, but they have since expired. Licenses would need to be renewed, but the process is expected
to be much quicker due to the previous approval. The well also has up hole Belly River and Viking gas
potential.
1 0 - 0 2 W E L L P R O P E R T Y R E S E R V E S A N D N E T P R E S E N T VA L U E - E F F E C T I V E M AY 1 , 2 0 1 4 ( I n t e r n a l E s t i m a t e d R e s e r v e s ) Property Reserves
Oil
(Mbbl)
Company Interest Reserves
After Royalties
NGL
GAS
(Mbbl)
(Mmscf)
NPV, $000’s
Before Taxes
BOE
(Mboe)
5%
10%
15%
Proved Developed
69646 1,600 902
Proved + Probable Developed
949
62
2,179
1,229
21,538
14,300
10,355
27,200 16,919 11,850
SW/4 AND SE/4 02-24-28W4 HORIZONTAL - PROBABLE DEVELOPED RESERVES AND NET PRESENT VALUE - EFFECTIVE MAY 1, 2014 (Internal Estimated Reserves)
Property Reserves
Company Interest Reserves
NPV, $000’s
After Royalties
Before Taxes
Oil
NGL
GAS
BOE
(Mbbl)
(Mbbl)
(Mmscf)
(Mboe)
5%
10%
15%
SW Quarter
48131 1,105 623
SE Quarter
70746 1,623 915
Note: Signing of a CA gives access to reserves parameters and Valnav files.
17,874
14,588
12,112
27,678
21,765
17,580
Bearspaw Petroleum Ltd.
CROSSFIELD/CHESTERMERE
I S O PA C H M A P B Q N E T PAY
H I G H L I G H T S
Bearspaw Petroleum Ltd.
P
100% interest in liquids rich gas well
P
7.2 Bcf/section proved reserves
P
Two sour spec 3” pipelines
T25
11-24 Uphole Potential
Zone
Depth (m)
Edmonton Sand
616 - 622
877 - 890
Belly River Sand
898 - 903
925 - 927
1079 - 1083
Basal Belly River Sand
1101 - 1111
1114 - 1122
Viking Sand
1760 - 1772
Glauconitic Sand
1989 - 1996
102/11-24-024-28W4/00
T24
R27W4
R28
11-24 BASAL QUARTZ GAS WELL
Bearspaw owns 100% interest in the 11-24 Basal Quartz, liquids rich gas well. It will produce through Harvest
Energy’s gas gathering system to the TAQA gas plant. Two 3” pipelines run to the well, both built to sour
specifications to mitigate future capacity issues. The well is currently shut in due to the Balzac gas plant
shutdown and pipeline reconfiguration to the TAQA gas plant. The well last produced in late 2011, averaging
481 mcf/d of gas. Proved reserves assigned based on volumetrics estimate 7.2 Bcf/section of gas in place.
The offsetting 5-36 well with a thinner pay interval has produced 5 Bcf to date, and is currently producing
at a rate of 715 mcf/d (see well log and production plot on following page). There is also potential to drill
additional wells to the south, as well as having additional up hole potential.
1 1 - 24 W E L L R E S E RV E S A N D N E T P R E S E N T VA LU E - E F F E C T I V E M AY 1 , 2 01 4 ( I n te r n a l E s t i m a te d Re s e r ve s ) Property Reserves
Oil
(Mbbl)
Company Interest Reserves
After Royalties
NGL
GAS
(Mbbl)
(Mmscf)
Proved Developed
0
208
7,260
Proved + Probable Developed
0
358
12,498
Note: Signing of a CA gives access to reserves parameters and Valnav files.
NPV, $000’s
Before Taxes
BOE
(Mboe)
5%
10%
15%
934
1,608
11,2087,224 5,131
18,723 12,176 8,856
Bearspaw Petroleum Ltd.
CROSSFIELD/CHESTERMERE
WELL LOG - 100/05-36-024-28W4
Bearspaw Petroleum Ltd.
100/05-36-024-28W4/00
+1033.8
Miss_sys
1995/07/16
Flowing GAS
Adjacent well with thinner pay
interval producing 715 mcf/d
WASCANA CROSSFIELD 5-36-24-28
Kglauc_ss
2050
2000
Kostracod
Kellrslie
Kdetr_Po
Kdetr_BPo
PRODUCTION PLOT - 100/05-36-024-28W4
2100
Melkton
TD 2130.0m
1000
Bearspaw Petroleum Ltd.