Marketed: Erikson National Energy Corporate Divestiture
Erikson National Energy Inc. has retained Sayer Energy Advisors for the sale of the company's shares.
The properties consist primarily of operated, high working interest shale natural gas production from several formations including the Baldonnel, Charlie Lake, Debolt, Halfway, Jean-Marie and Muskwa formations.
In the Greater Fort St. John area, the company has working interests in the Buick Creek, Fireweed, Fort St. John, Laprise, Roseland and Stoddart areas.
The company’s average daily sales production in the fourth quarter of 2022 consisted of approximately 18.1 MMcf/d of natural gas and 22bbl/d of oil and NGL/d (3,043 boe/d).
Operating income net to Erikson from the properties for the year ended September 30, 2022 was approximately $602,000 per month, or $7.2 million on an annualized basis.
As at Sept. 30, 2022, Erikson’s working capital deficit was approximately $4.6 million. The company has 100% owned midstream facilities capable of over 140 MMcf/d of natural gas throughput.
Deloitte LLP prepared an independent reserves evaluation of Erikson’s properties as part of its year-end reporting. The Deloitte Report is effective Sept. 30 using Deloitte’s forecast pricing as at Oct. 1. Deloitte estimated that, as of Sept. 30, the properties contained remaining proved plus probable reserves of 115.2 Bcf of natural gas and 392,000 bbl of oil and NGL (19.6 MMboe), with an estimated net present value of $105.2 million using forecast pricing at a 10% discount.
Erikson has significant upside in drilled, uncompleted inventory ready for execution. Erikson commissioned Deloitte to provide independent resource estimation and economic evaluations of the Muskwa, Evie, Bluesky, Spirit River, Shunda and Debolt formations for the properties effective Sept. 30.
The company has been reactivating operations since acquiring the properties in June 2020. Further asset retirement obligation work is to be continued in 2023. Erikson anticipates having an updated Permittee Capability Assessment score in early February which will be provided to parties that execute a confidentiality agreement.
Proposals are due at 12:00 p.m. on March 2. For further information, contact Ben Rye, Grazina Palmer or Tom Pavic at (403) 266-6133.