Tandem Energy Corp.

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

Tandem Energy Corp. has retained Sayer Energy Advisors to explore the firm’s strategic alternatives and to look into the potential sale of some of its assets.

Tandem, a privately-held Canadian upstream company, is active in Southern Alberta and West Central Alberta, where it has identified and captured significant upside on 46.25 gross sections (43.5 net) of highly-prospective lands with 16 drillable oil and liquids-rich natural gas prospects.

The company’s recent production is about 285 barrels of oil equivalent (BOE) per day.

In Southern Alberta, Tandem has acquired 33 gross sections (32.1 net) of land on which it has identified a number of oil prospects. The Company’s lands are located in the Pageant, Majorville, Long Coulee, Eyremore, McGregor Lake, Jumpbush, and Shouldice areas.

In West Central Alberta, Tandem has high working interests and operates producing properties and prospects in the Sylvan Lake, Willesden Green, Gilby and Rimbey areas, where it has mapped a number of “drill ready” light oil and natural gas prospects on its lands.

GLJ Petroleum Consultants estimates that as at Dec. 31, 2011 Tandem’s properties contained total proved plus probable reserves of approximately 114,000 barrels of oil and natural gas liquids (NGLs) and 5.6 billion cubic feet (Bcf) of natural gas, a total proved plus probable reserve base of 1.05 million barrels of oil equivalent (BOE). Those assets have an estimated net present value of approximately $8.3 million, using GLJ’s Jan. 1, 2012 forecast pricing at a 10% discount rate.

In addition, GLJ also prepared a resource assessment of the contingent and prospective reserves underlying Tandem’s properties at Pageant, Willesden Green and Sylvan Lake. GLJ estimates that the three properties contain a best estimate of 915,000 barrels of oil and natural gas liquids and 4.5 Bcf of natural gas, with a potential value of $13.1 million using forecast pricing at a 10% discount.

The deadline for submitting proposals to enter into a transaction with Tandem is noon on Thursday, Nov. 1. For further information, contact Alan Tambosso, president of Sayer Energy Advisors, at 403-266-6133.