Richelhoff Resources Inc.: Saskatchewan Heavy Oil Property Divestiture
February 24, 20208:00 AM BOE Report Staff
Richelhoff Resources Inc. (“Richelhoff” or the “Company”) has engaged the services of Sayer Energy Advisors to assist it with the sale of its 100% working interest heavy oil property in the Salvador area of Saskatchewan (the “Property”).Richelhoff is selling the Property in order to focus its efforts on its core properties in other areas.
Richelhoff’s vertical Mannville (Sparky and Waseca Formation) heavy oil wells currently produce approximately 30-40 barrels of 13o API (980 kg/m3) heavy oil per day.Other local operators have recently been successfully developing the Sparky Formation with horizontal wells. There is potential to similarly develop the Sparky Formation with horizontal wells on Richelhoff’s 100% working interest lands.As of February 12, 2019, the combined LMR for the Property was 1.87, with net deemed assets of $443,045 ($950,645 deemed assets and $507,600 deemed liabilities).The Company does not have an independent evaluation of the Property’s reserves.Summary information relating to this divestiture is attached to this correspondence. More specific information is available at www.sayeradvisors.com. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement.Offers relating to this divestiture will be accepted until 12:00 pm on Thursday, March 19, 2019.For further information please feel free to contact: Ben Rye, Grazina Palmer or myself at 403.266.6133.Tom Pavic, CFAPresidentSAYER ENERGY ADVISORS1620, 540 – 5th Avenue SWCalgary, Alberta T2P 0M2P: 403.266.6133 F: 403.266.4467C: 403.681.8109www.sayeradvisors.com