receivership sale: , alberta gross: 3,990 boe/d (22.7 mmcf ... · the company began shutt ing in...

Receivership Sale BID DEADLINE: 12:00 pm February 27, 2020

© Sayer Energy Advisors 2020 1620, 540 – 5th Avenue SW, Calgary, Alberta Canada T2P 0M2 Tel: 403.266.6133 Fax: 403.266.4467 www.sayeradvisors.com

On October 29, 2019, Hardie & Kelly Inc. was appointed receiver and manager (the “Receiver”) of Houston Oil & Gas Ltd. (“Houston” or the “Company”). The Receiver has engaged Sayer Energy Advisors to assist with the sale of all of the Company’s remaining oil and natural gas properties which are located in southern and central Alberta (the “Properties”). The Receiver was appointed by the Court pursuant to the application made by the Orphan Well Association and intends to divest the Properties, in whole or in part. The Properties consist of generally high working interest natural gas assets. The Company’s wells have been grouped into various packages based on operations where applicable. Additional wells which do not fall into these packages have been grouped under a miscellaneous category. Note that in cases where only one well event is shown for a well with multiple legs, multiple UWIs or multiple well events under one license, all wells with the same license number are available.

The Company began shutting in its operated production in August, 2019, prior to ceasing operations. Production information stated in the marketing materials is field level production (gross) from the Properties, prior to the Properties being shut-in, current as of July 31, 2019, unless otherwise stated. PROCESS & TIMELINE Sayer Energy Advisors is accepting offers to acquire the Properties until 12:00 pm on Thursday, February 27, 2020.

Timeline

Week of January 27, 2020 Preliminary Information Distributed Week of January 27, 2020 Data Room Opens

February 27, 2020 12:00 noon Bid Deadline March 1, 2020 Effective Date

Second Quarter 2020 Closing Date

Sayer Energy Advisors does not conduct a “second-round” bidding process; the intention is to attempt to conclude transaction(s) with the party(ies) submitting the most acceptable proposal(s) at the conclusion of the process.

Sayer Energy Advisors is accepting offers from interested parties until noon on Thursday, February 27, 2020.

Receivership Sale: Southern & Central, Alberta Gross: 3,990 boe/d (22.7 MMcf/d, 196 bbl/d)

BID DEADLINE: 12:00 pm February 27, 2020 Receivership Sale

1620, 540 – 5th Avenue SW, Calgary, Alberta Canada T2P 0M2 Tel: 403.266.6133 Fax: 403.266.4467 www.sayeradvisors.com

OVERVIEW INFORMATION The Company does not have a third-party reserve evaluation for the Properties. Information on the Company’s facilities and infrastructure is available in the data room for parties that execute a Confidentiality Agreement. LLR SUMMARY as of January 4, 2020 Property level LLR information can be found on our website at www.sayeradvisors.com.

Deemed Asset Amount Deemed Liability Amount Net Deemed Asset Value LLR $49,663,226 $81,536,123 ($31,872,897) 0.61

PRODUCTION OVERVIEW The Company began shutting in its operated production in August, 2019, prior to ceasing operations. Production information stated in the marketing materials is field level production (gross) from the Properties, prior to the Properties being shut-in, current as of July 31, 2019, unless otherwise stated. Gross field level production from the Properties in July 2019, prior to the Company beginning the systematic production shut-ins was approximately 22.7 MMcf/d of natural gas and 196 barrels of oil per day (3,990 boe/d).

PROPERTY

GROSS PRODUCTION (FIELD LEVEL)

(July 2019)

Oil Nat. Gas Total

bbl/d Mcf/d boe/d

Pincher Creek 0 1,968 328 Retlaw/Alderson 23 469 101

Enchant/Little Bow/Carmangay 65 868 210 Suffield 0 82 14

Majorville/Leckie 17 10,135 1,706 Herronton 0 1,483 247 Garrington 0 80 13 Pembina 0 112 19

Niton 0 681 114 Thorhild-Nestow 0 1,102 184

Corbett 3 7 4 Pine Creek/Kaybob/Blue Ridge 36 1,867 347

Peace River Arch 52 2,422 456 Gordondale 0 1,487 248

TOTAL 196 22,763 3,990

http://www.sayeradvisors.com/



Southern Properties Overview Map

Central Properties Overview Map



Southern Properties

Pincher Creek Property Township 4-6, Range 30 W4-3 W5 The Company holds various interests in land and wells in the Pincher Creek area as shown on the offsetting map. Field level production from Pincher Creek in July 2019, prior to the Company beginning production shut-ins was approximately 2.0 MMcf/d of natural gas (328 boe/d). Production at Pincher Creek is from the Wabamun Formation.

Medicine Hat Property Township 9-11, Range 4 W4 At Medicine Hat, the Company holds various interests in land and wells as shown on the offsetting map. There was no production from Medicine Hat in July 2019.

Retlaw/Alderson Property Township 10-14, Range 13-19 W4 At Retlaw/Alderson, The Company holds various interests in land and wells as shown on the offsetting map. Field level production from Retlaw/Alderson in June 2019, prior to the Company beginning production shut-ins was approximately 469 Mcf/d of natural gas and 23 barrels of oil per day (101 boe/d).



Enchant/Little Bow/Carmangay Property Township 9-16, Range 12-23 W4 At Enchant/Little Bow/Carmangay, the Company holds various interests in land and wells as shown on the following maps. Field level production from Enchant and Carmangay in July 2019, prior to the Company beginning production shut-ins was approximately 868 Mcf/d of natural gas and 65 barrels of oil per day (210 boe/d). Production from Little Bow was suspended in April 2019. Production from Little Bow in March 2019 was 337 Mcf/d of natural gas (56 boe/d).



Suffield Property Township 15-18, Range 6-8 W4 The Company holds various interests in land and wells in the Suffield area as shown on the offsetting map. Field level production from Suffield in July 2019, prior to the Company beginning production shut-ins was approximately 82 Mcf/d of natural gas (14 boe/d).

Majorville/Leckie Property Township 17-21, Range 16-20 W4 The Company holds various interests in land and wells in the Majorville/Leckie area as shown on the following map. Gross field level production from Majorville/Leckie in July 2019 was approximately 10.1 MMcf/d of natural gas and 17 barrels of oil per day (1,706 boe/d).



Herronton Property Township 17-23, Range 22-28 W4 At Herronton, The Company holds various interests in land and wells as shown on the following map. Field level production from Herronton in July 2019, prior to the Company beginning production shut-ins was approximately 1.5 MMcf/d of natural gas (247 boe/d).

Bindloss Property Township 22, Range 5 W4 At Bindloss, the Company holds various interests in land and wells as shown on the offsetting map. There was no production from Bindloss in July 2019.



Central Properties

Garrington Property Township 34, Range 3-4 W5 The Company holds various interests in land and wells at Garrington, as shown on the offsetting map. Field level production from Garrington in July 2019, was approximately 80 Mcf/d of natural gas (13 boe/d).

Cygnet/Sylvan Lake Property Township 37-39, Range 28 W4-2 W5 The Company holds various interests in land and wells in the Cygnet/Sylvan Lake area as shown on the offsetting map. There was no production from Cygnet/Sylvan Lake in July 2019.

Pembina Property Township 45-48, Range 4-10 W5 At Pembina, the Company holds various interests in land and wells as shown on the offsetting map. Field level production from Pembina in July 2019, prior to being shut-in was approximately 112 Mcf/d of natural gas (19 boe/d).



Niton Property Township 32-36, Range 21-23 W4 At Niton, Houston holds working interests in certain land and wells including the Viking natural gas well BEC 102 MCLEOD 102/10-33-054-15W5/2. Field level production from the BEC 102 MCLEOD 102/10-33-054-15W5/2 in July 2019, was approximately 681 Mcf/d of natural gas (114 boe/d).

Thorhild-Nestow Property Township 58-62, Range 18-24 W4 At Thorhild-Nestow, the Company holds various interests in land and wells as shown on the offsetting map. Field level production from Thorhild-Nestow in June 2019, prior to being shut-in was approximately 1.1 MMcf/d of natural gas (184 boe/d).

Corbett Property Township 60-62, Range 4-8 W5 The Company holds various interests in land and wells in the Corbett area as shown on the offsetting map. Field level production from Corbett in July 2019, prior to being shut-in was approximately 3 barrels of oil per day and 7 Mcf/d of natural gas (4 boe/d).



Peace River Arch Properties Township 60-64, Range 23 W5-5 W6 The Company holds various interests in land and wells on the Peace River Arch in the Saxon, Kakwa and Elmworth areas as shown on the following maps. Field level production from Saxon in July 2019, prior to being shut-in was approximately 2.4 MMcf/d of natural gas and 52 barrels of oil per day (456 boe/d).



Pine Creek/Kaybob/Blue Ridge Property Township 56-60, Range 10-19 W5 The Company holds various interests in land and wells in the Pine Creek/Kaybob/Blue Ridge area as shown on the following map. Field level production from Pine Creek/Kaybob/Blue Ridge in July 2019, prior to being shut-in was approximately 1.9 MMcf/d of natural gas and 36 barrels of oil per day (347 boe/d).

Gordondale Property Township 58-59, Range 5-6 W5 The Company holds various interests in land and wells in the Gordondale area as shown on the offsetting map. There was no production from Gordondale in July 2019.

Miscellaneous Properties The Company holds various interests in land and wells in the Bruce, Countess, Grassland, Harmon, Hastings, Lochend, Medicine River, Roxana and Sinclair areas of Alberta. In addition, the Company holds various interests throughout southern and central Alberta which are not presented in specific packages. Certain miscellaneous wells located within the boundaries of the distinct areas may be found in the Miscellaneous Properties well list.



Hardie & Kelly Inc. Houston Oil & Gas Ltd.

Winter 2020 Receivership Sale

Parties wishing to receive a Confidential Information Binder with detailed technical information relating to this opportunity should execute the Confidentiality Agreement which is available on Sayer Energy Advisors’ website (www.sayeradvisors.com) and return one copy to Sayer Energy Advisors by courier, email ([email protected]) or fax (403.266.4467). Included in the Confidential Information Binder is the following: summary land information, most recent net operations summary, LLR information and other relevant technical information. To receive further information on the Properties please contact Ben Rye, Tom Pavic, Grazina Palmer or Alan Tambosso at 403.266.6133.

http://www.sayeradvisors.com/

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receivership sale: , alberta gross: 3,990 boe/d (22.7 mmcf ... · the company began shutt ing in...

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