Harvard Resources Inc. (“Harvard” or the “Company”) has engaged Sayer Energy Advisors to assist the Company in the sale of oil and natural gas interests (the “Property”) located in the Mikwan region of Alberta.
Harvard University holds a 70% operating interest in the property. The remaining 30% non-operating interest is also available for sale to interested parties.
The property consists of approximately 30 parcels of Crown land. Production from the property is by Viking Formation. This property has been experiencing flooding since October 2019.
Average net daily production from the Property to Harvard University for the quarter ended June 30, 2024 was approximately 64 boe/day, which is equivalent to approximately 64 boe/day of liquid oil and natural gas. It consists of 53 barrels of natural gas at 63 Mcf/d.
For the quarter ended June 30, 2024, the Property provided net operating income to Harvard University of approximately $215,000, or $860,000 annualized.
As of September 7, 2024, the Property had a deemed net asset value of $1.3 million (deemed assets of $3.5 million, deemed liabilities of $2.2 million) and an LMR ratio of 1.59.
GLJ Ltd. (“GLJ”) has prepared an independent reserve assessment for the Property (the “GLJ Report”). The GLJ report is effective from March 31, 2024, using GLJ’s projected price as of April 1, 2024. GLJ estimates that as of March 31, 2024, the Property contained 163,000 barrels of liquid oil and natural gas and 76 barrels of remaining proven and probable reserves. MMcf (176,000 boe) of natural gas, with an estimated net present value of $3.8 million using a 10% discounted projected price.
Summary information regarding this sale is attached to this communication. A more detailed confidential information package will be sent to the parties that have signed a non-disclosure agreement (a copy will be attached).
Cash offers related to this process will be accepted until 12:00 pm on Thursday, November 21, 2024.
For more information, please feel free to contact Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.
