LEGAL

> CESSFORD, ALBERTA ASSET DISPOSITION

OVERVIEW

PRODUCTION

Geology

 

 

Moya Little, President

Western Divestments
Suite 105, 214 - 11 Avenue SE,
Calgary, Alberta, Canada
T2G 0X8

Phone: (403) 543-4080

> Overview

Convega Energy Ltd. has retained Western Divestments Inc. as its exclusive agent to sell its 100% operated working interest at Cessford, Alberta in T24 R13/14 W4M. Located approximately 200 km east of Calgary, the property consists of just over 640 acres of crown land with P&NG rights from Surface to Base Mannville excl. NG in the Colorado and Blairmore Formations. There are no overrides or ROFR’s associated with this property. There are seven wells on the property four of which currently produce 20 BOPD 30 degree API oil and 80 MCFD solution gas from the Mannville Formation. The wells produce at a 1% watercut. 

Convega, as operator of the lower Mannville oil pool in Section 34 and 35 of T24-R13 W4M, was successful in its May 2015 application to have the pool designated as a separate pool from the existing Cessford Commingled Pool 002. The separate pool is designated as the Mannville T13T pool. Based on current mapping and reservoir characterization Convega has determined that the T13T pool presents an excellent, potential EOR candidate. This project would involve the conversion of select existing Mannville T13T producers to water injectors and the possible drilling of infill producers to complete the pattern. Convega expects significant incremental oil reserves could be realized by this project. 

The LLR asset value is $1,085,283 with an LLR liability value of $437,451. Property LLR ratio is 2.48. 

If you would like further information on Cessford, kindly complete and sign the Confidentiality Agreement found on our website www.westerndivestments.com/divestments and return it to my attention at moyalittle@westerndivestments.com. 

Non-binding bids on this offering will be accepted until 5:00 pm (MDT), October 19th, 2017.

Land Schedule