Convega Energy Ltd. has retained Western Divestments Inc. to divest a 100% operated working interest in its Cessford, property located approximately 200 km from Calgary and 57 km from Brooks, in southern Alberta in T25-R11 W4M. The property consists of 1280 acres of land with P&NG from surface to base Mannville excl. NG in the Colorado. There are five producing wells on the property currently producing 12 bbl/day oil, 2 bbl/day associated liquids and 260 mcf/day gas, two observation wells and one injection well.
620,000 bbls of secondary, recoverable reserves are estimated based on empirical calculations on the proposed waterflood scheme. Utilizing a water injection rate of 600 bbl. per day, response is expected within one year with a peak oil production rate of 130 bbls per day.
The LLR asset value is $1,224,993.73 with an LLR liability of $603,978.00. Property LLR ratio is 2.03 effective September 1, 2018.
If you would like to obtain additional information and book a data room to review well files, kindly contact Moya Little. Moya can be reached at 403-543-4080 office, or 403-519-8351 cell.