Harvest Operations Corp.

Transaction Type
Sellers
Marketers
Post Date
Close Date
Estimated Price
MM
Description

Harvest Operations Corp. has engaged Sayer Energy Advisors to sell several oil and gas producing properties in southeastern Alberta and Saskatchewan.

Harvest holds several operated and non-operated working interests or royalty interests in eight oil and natural gas properties which have recently netted an average of 3,413 barrels of oil equivalent (BOE) per day, including 13.2 million cubic feet (MMcf) per day of natural gas and 1,210 bbl per day of natural gas liquids.

The properties have been grouped into five geographical packages for ease of presentation of the marketing materials. Harvest will consider bids on individual properties, but will not consider offers on portions of the properties, as it is conducting a “white map” of the properties.

In Central Alberta, Harvest holds varied operated and non-operated working interests or royalty interests in six producing oil and natural gas properties, as well as in a large acreage position which includes rights in the Duvernay Formation. Harvest will consider offers on any or all portions of the Duvernay rights which it holds. It has total recent sales volumes of approximately 383 barrels per day of oil and ngls and 1.2 MMcf/d of natural gas, or 586 BOE per day from the Central Alberta properties.

In addition, Harvest holds varied operated and non-operated working interests in two oil and natural gas properties on the Peace River Arch. Recent sales volumes net to Harvest from the properties on the Peace River Arch have averaged approximately 810 Mcf per day of natural gas and 20 barrels per day of oil and natural gas liquids, or 155 BOE per day.

In Northeastern Alberta, Harvest holds a variety of operated and non-operated working interests or royalty interests in five natural gas properties. Recent sales volumes net to Harvest from the properties in Northeastern Alberta have averaged approximately 4.3 MMcf per day of natural gas, or 713 BOE per day in total.

In British Columbia, Harvest also has several operated and non-operated working interests or royalty interests in six properties. Recent sales from those properties have averaged 3.0 MMcf per day of natural gas and 66 barrels per day of oil and natural gas liquids, or 570 BOE per day in total.

Harvest has has various reserves reports for the properties up for sale, prepared by GLJ Petroleum Consultants Ltd., McDaniel & Associates Consultants Ltd. and by Harvest itself. Total proved plus probable reserves from the properties are estimated to be 4.62 million barrels of oil and NGLs and 46.9 Bcf of natural gas (12.45 million BOE), with an estimated net present value of $177.4 million using forecast pricing at a 10% discount.

The deadline for cash offers on the properties will be accepted until 12pm Oct. 18. For more information, contact: Tom Pavic, Crystal Holdershaw, Ryan Ferguson Young or Alan Tambosso at 403.266.6133.