November 18, 2015 • Volume 24, No. 16 CANADIANACQUIRER Serving the marketplace with news, analysis and business opportunities PrairieSky gets CNRL royalty asset package for $1.8 billion Private E&P firm Nordegg After starting life with the royalty assets of Encana, PrairieSky Royalty is getting puts itself up for sale another of the premier royalty asset packages available in Western Canada by acquiring Private Canadian E&P Nordegg substantially all of the royalty interests of CNRL for $1.8 billion. PrairieSky will pay $680 Resources is launching a strategic million in cash and issue 44.4 million common shares at a deemed price of $25.20 per alternatives review and has retained share to unify ownership of a large portion of the available fee title mineral interest land. Peters & Co. to run The royalty asset package covers 5.4 million acres with 2.2 million the process. The acres of fee title land and company is focused Deal unifies ownership of two premier 3.2 million acres of GORRs. There are more on liquids-rich Glauconite development royalty asset packages. than 10,000 producing wells contributing to at Northville in west-central Alberta. the total output of 6,700 boe/d. The land is geographically diverse, stretching from the Outside of Northville, it has operations Doig/Montney fairway in northeast British Columbia across Alberta and down to southeast at the Dawson and Caribou areas of Saskatchewan and southwest Manitoba. The royalty interest averages 5%. The transaction boosts PrairieSky’s fee title land by 39% and its GORR properties Assets produce a total of 2,000 boe/d by 85%. Pro forma, its combined position will consist of 7.7 million acres of fee title from three operating areas. and 7.0 million acres of GORR acreage. Continues On Pg 4 northern Alberta. August production Pine Cliff buys central Alberta assets for $185 million averaged 2,000 boe/d (40% oil and Continuing its run as a buyer of gas-weighted Canadian assets, Pine Cliff Energy NGLs) with an estimated annual decline has picked up properties in central Alberta for $185 million. PLS believes the seller rate of 19%. Reserves total 10.1 MMboe to be ConocoPhillips, which was marketing assets in the area with the same profile proved and 13.8 MMboe for 2P reserves. as those acquired by Pine Cliff. Pine Cliff broke the acquired assets out into There is significant unbooked potential two packages: Ghost Pine and Viking. Those were two of the seven asset in the Rock Creek, Ellerslie, Slave Point packages Conoco placed on and other formations across its land the market in June with assistance from Gets total gas-weighted production base, which amounts to 57,280 net acres of 70.4 MMcfe/d. Continues On Pg 7 Scotia Waterous. The reported acreage (65,280 gross). and production acquired by Pine Cliff also matches what was being marketed by Conoco. Along with CNRL, Pine Cliff was rumored to be one of the acquirers of FEATURED DEALS the Conoco assets when sources told Bloomberg in September that deals were being worked out. These were two of the largest packages available. WEST ALBERTA PROPERTIES 1-Gas Unit & Non-Unit Properties. Total production from the two asset packages is 70.4 MMcfe/d (89% gas, 7% oil & DUNVEGAN AREA. 4% NGLs). Combined proved reserves amount to 285 Bcfe with 2P reserves of 471.6 Bcfe. Upside in Infill Development Wells, PP The assets have a long-life profile and a low decline rate of 12%. Continues On Pg 6 -- and Optimization of Existing Wells. ~13% NonOperated WI For Sale in Unit. Net Production: 1,363 BOED 1,363 Suncor closes $310 million oil sands deal with Total Long Producing Reserve Life. BOED While its effort to acquire Canadian Oil Sands has yet to succeed, Suncor Energy 2014 Net Income: ~C$692,000/Month has still managed to boost its oil sands exposure by closing an acquisition of 10% WI Gas Plant & Infrastructure Included. in the Fort Hills oil sands project from Total. Pro forma to the deal, Suncor has a ORIGINAL OFFERS DUE JUNE 17, 2015 CONTACT AGENT FOR MORE INFO 50.8% operated interest in the project, Total holds a 29.2% stake and the third partner, PP 13609DV Teck Resources, owns the remaining 20% WI. Teck elected not to exercise its right to proportionally increase NORTHEAST ALBERTA LEASES ownership of Fort Hills. Boosts ownership of Fort Hills oil sands ~132,000-Net Acres of Oil Sands Leases. project to 50.8%. The Fort Hills oil ATHABASCA OIL SANDS Silvertip, Birchwood, West Ells, Dover -- DV sands project is in the Athabasca region of Alberta 90 km north of Fort McMurray. Ells North, Ells S & C, Asphalt Creek With engineering 90% completed and construction more than 40% finished, Fort Hills 69 Grizzly Core Hole & >47 Legacy Wells. is on track for first oil in 4Q17. The project is expected to have a peak gross production 54.5 km of 2D Seismic Data Available ATHA- rate of 180,000 bbl/d of bitumen, and the mine has best-estimate contingent resources 40%-100% OPERATED WI AVAILABLE BASCA of 3.3 Bbbl of bitumen, sufficient for 50 years of activity. Potential For 165,000 BOPD Est Recoverable Reserves: 1,345 MMBO The development scheme calls for an open-pit truck and shovel mine with two Net Bitumen in Place: 10.6 BBbls main pits. The mine will deliver oil sands feed to two ore-crushing plants, where oil DV 11554L sand material will be crushed and processed. Continues On Pg 11 All Standard Disclaimers & Seller Rights Apply. CANADIANACQUIRER 2 November 18, 2015 A&D Trilogy sells Dunvegan Quattro buys stacked pay assets in northeast BC rights at Kaybob area Adding on to its northeast British Columbia operating area, Quattro Exploration Trilogy Energy has completed the sale & Production is purchasing assets in northeast British Columbia from a private seller of its Dunvegan assets in the Kaybob area for $1.9 million. Quattro is getting long-life current production of 612 Mcfe/d and of Alberta for $45 million. Located within 2P reserves of 2.7 Bcfe. Leasehold totals 13,064 acres (10,552 acres undeveloped). west-central Alberta’s Deep Facilities are in place, with excess capacity available to support future production growth. Basin, the Kaybob assets Quattro expects have stacked pay potential upside from well Long-life production of 612 Mcf/d with and are the key operating area for Trilogy 2P reserves of 2.7 Bcfe. optimization and workovers, along with 95% of all 2014 capex directed to with the potential in the undeveloped acreage. The acreage contains a number of there. The stacked pay nature of the assets conventional development options, including the Halfway, Doig, Bluesky, Dunlevy, has allowed Trilogy to raise development Charlie Lake, Slave Point and Keg River. capital by selling off rights to different Reports paying $12,300 per daily boe There are also competitive unconventional depths while retaining its acreage position. & $2.80 for 2P reserves. drilling options in the Montney, Muskwa Trilogy is also contemplating either and Otter Park formations. Quattro assigns the majority of the deal value to current selling or striking a JV for its Duvernay production, while valuing the undeveloped land at less than $100/acre. assets at Kaybob. Trilogy has 48,000 acres “The acquisition of this production at a discount to current oil and natural gas in the gas/condensate area of the play and pricing and the additional prospective lands is another incremental step in our business 80,000 acres in the volatile oil window. plan of being regional focused while The company last reported having spent continually improving on Quattro’s Over 10,000 undeveloped acres with $340 million on Duvernay projects and stacked pay potential. economies scale in its core regions,” said participating in 51 horizontal wells. CEO Leonard Van Betuw. “Upon closing, this acquisition represents a production and Selling off the Duvernay would leave reserves increase of more of 5% YOY at a cost of $12,300 per boe/d and $2.80 per boe the Montney as the prime drilling target of reserves on a 2P basis. Clearly this is an accretive addition to reaching our near- for Trilogy at Kaybob. The company has term goals in northeast British Columbia.” drilled 110 Montney wells to date with average well EURs of 292,000 boe. There Acquisitions Key Part of Quattro’s Growth Plans are 400 remaining Montney locations. Western Accelerated growth and diversification, increasing book value and operating ABOUT PLS Canada income 300% in 2015 PLS CanadianAcquirer covers the active Phase One First phase of acquisitions are complimentary to Quattro’s Canadian asset marketplace with analysis of current operations mergers, divestitures, transactions, analyst comments, deals in play and deal metrics. 24 low risk development locations for re-entry, drilling, & completion, Low-Risk to incrementally grow and optimize existing properties, utilizing In addition, the CanadianAcquirer carries established infrastructure & cash-flow broker offerings and property listings that Reserves and development locations to 200, & 10 exploration wells targeting are coded alpha-numerically. Increased 3 independent regions of Canada, seismically quantified within known low To obtain additional PLS product details, cost producing regions, funding material growth in 2016 in Guatemala drill www.plsx.com/publications. Guatemala Business development continues PLS Inc. 3300, 205-5th Avenue SW An expanding team of professionals with over 300 aggregate years of oil Calgary AB T2P 2V7 Team & natural gas experience, from grass roots exploration through to 403-294-1906 (Canada) development and marketing 713-650-1212 (US) 2015 Exit Low risk Dec 31st potential to exit 2015 producing > 3,000 boe/d (40% liquids) To obtain additional listing info, contact us at 403-294-1906 or [email protected] with the listing code.