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

> Production

There are seven wells on the property, four of which currently produce 20 BOPD of 30 degree API oil and 80 MCFD solution gas from the Mannville Formation. There is one reactivation potential, one water injection potential and one water source potential  The wells produce at a 1 water cut.

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.

All wells are flow-lined to a proration battery located at 8-34-24-13W4M, fully equipped. 

Solution gas gathered to the CNRL Cessford 2-8-24-12 W4M processing facility through a new tie-in at 7-26-24-13W4M. 

Convega has recently overhauled two casing gas compressors and two pump motors. 

Clean oil is sold to Trafigura through the IPL Hamilton Lake pipeline at the Throne Truck Terminal 

There are six un-booked drilling locations on 16 HA spacing.  

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

Well List

Convega Energy owns a 100% Working Interest in the Cessford Mannville T13T Pool. 

There are seven total wells, four producing, one reactivation potential, one water injection potential and one water source potential. 

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In-house evaluation using Sproule pricing

Steady production and GOR with a low water cut.

Wells are low rate, low decline wells and should produce over 50,000 barrels of oil and almost 0.25 BCF gas.

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All wells are flow-lined to a proration battery located at 8-34-24-13W4M, fully equipped. 

Solution gas gathered to the CNRL Cessford 2-8-24-12 W4M processing facility through a new tie-in at 7-26-24-13W4M. 

Convega has recently overhauled two casing gas compressors and two pump motors. 

Clean oil is sold to Trafigura through the IPL Hamilton Lake pipeline at the Throne Truck Terminal 

There are six un-booked drilling locations on 16 HA spacing. 

Reserves