Embed Size (px)
Citation preview
1
Sinopec Disposition Process
Key Conditions:
• Sinopec Canada would like interested parties to submit cash bids for 100% of Sinopec’s interest in all lands, wells, and infrastructure (“White Map”).
– Priority will be given to offers on all assets in the divestiture package
• All offers are subject to final Sinopec International Petroleum Company (SIPC) approval.
Inquiries: All inquiries and requests shall be submitted or directed to the Sinopec representatives
listed. Other Sinopec individuals are not to be contacted directly regarding this process.
Craig Ruddy
Land Negotiator
403-536-5875
Timeline
Confidential Information: December 5, 2018
Execution of the Sinopec Confidentiality Agreement (CA) will be
required and forwarded upon request.
The CA will allow access to confidential material to be made via a
FTP Site. Confidential material will be available on the week of
December 1, 2018.
Bid Deadline: February 1, 2019
12:00 pm
Detailed instructions for submitting a proposal will be distributed in
advance of the bid date.
Sinopec Canada (Sinopec) is undertaking a public process to solicit proposals
relating to the disposition of several Alberta property’s
2
Asset Overview
AreaGross
Acres
Net
Acres
Gross
Sections
Net
Sections
Royalty
Sections
Average
WI
Baptiste 4,480 3,440 7 5.4 0 77%
Brewster 640 416 1 0.65 0 65%
Buck Lake 9,600 4,040 15 5.3 4 42%
Calling Lake 23,840 15,292 37.3 23.9 5 64%
Caroline 17,593 5,574 27.5 8.7 1.5 32%
Chipman 7,672 6,167 12 9.6 2 80%
Ferrybank 960 640 1.5 1 0 67%
Meanook 10,080 1,920 15.75 3 12.75 19%
Minnehik 640 250 1.0 0.4 1 39%
Retlaw 4,991 1,427 7.8 2.2 2.4 29%
Total 80,496 39,166 125.5 60 29 49%
• The 10 Assets in this package are all located in Alberta & focused primarily on
conventional oil & natural gas assets.
− Current Production
• Total Production from the areas is 340 Boe/d (38% oil and liquids) for H1 2018
− Land
• Sinopec holds an average of 49% working interest across the lands included
in the 10 properties that are part of this process (39,166 Net Acres)
RETLAW
CHIPMAN
BUCK LAKE
MEANOOK
BAPTISTE
CALLING LAKE
CAROLINE
BREWSTERFERRYBANK
MINNEHIK
3
Buck Lake
Sections (Gross/Net) 15 / 5.3
Avg. WI % 42%
Royalty Interest Sections 4.0
Average Production for H1 2018
Oil
(bbl/d)
NG
(Mcf/d)
NGL
(bbl/d)
Total
(boe/d)
23 271 27 95
• Buck Lake is currently producing ~95 boe/d
• The main producing formations within Buck
Lake are the Upper Cretaceous, Lower
Cretaceous, Nordegg, and Banff
• Area competitors have been targeting the
Glauconite and Cardium formations recently
• Sinopec has identified 1 upside location for
this asset:
– xx-32-42-05W5 Mannville upside location –Sinopec WI – 50%
LEGEND
Sinopec Land
Third Party Wells
Sinopec Wells
Upside Locations
4
Calling Lake
Sections (Gross/Net) 37.3 / 23.9
Avg. WI % 64%
Royalty Interest Sections 5.0
• Calling Lake is currently producing ~40 boe/d
• The main producing formations within Calling
Lake are the Mannville (Grand Rapids and
Clearwater Group), Graminia/Nisku
• Sinopec has identified 3 upside locations for
this asset:
– xx-33-71-19W4 Clearwater vertical upside location – Sinopec WI – 100%
– xx-23-71-19W4 Grand Rapids vertical upside location – Sinopec WI – 100%
– xx-29-71-19W4 Nisku vertical upside location – Sinopec WI – 100%
Average Production for H1 2018
Oil
(bbl/d)
NG
(Mcf/d)
NGL
(bbl/d)
Total
(boe/d)
0 243 0 40
LEGEND
Sinopec Land
Third Party Wells
Sinopec Wells
Upside Locations
5
D
D
D
D
D
D
D
D
DD
D
DD
DD
DD
D
D
D
D
D
D
D
D
HH
D
D
DD
H
D
H
D
D
D
D
D
D
H
D
D
D
H
D
DD
D
H
D
D
H
D
D
D
D
H
H
H
D
D
D
D
D
DDD
D
D
DD
DD
D
D
D
D
D
D
D
D
H
D
D
D
D
D
D
D
D
DD
D
D
D
H
D
D
D
D
D
DD
D
D
D
D
D
D
HH
D
H
H
H
D
D
D
D
H
D
D
D
D
H
D
D
D
H
D
D
D
D
D
H
D
H
H
H
D
D
D
D
H
H
D
D
D
D
D
HH
H
H
H
D
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
HH
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H H
H
H
H
H
HH
H
H
H
H
H
D
H
H
HH
H
H
H
H
H
D
H
H
H
H
H
D
H
D
H
H
H
H
H
D
H
H
H
HH
HH
H
H
H
H
H
HH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
DH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
DD
D
D
H
D
DH
H
D
DD
H
DD
H
D
DD
HH
H
D
D
H
DD
H
DDD
D
D
H
D
H
H
D
H
D
D
H
D
D
D
H
D
D
H
D
H
H
D
H
D
D
D
D
D
HH
H
H
D
D
D
D
DD
D
DD
D
DD
H
D
D
H
D
D
D
DD
D
D
H
D
D H
DDDD
D
D
DD
H
D
D
D
H
D
D
D
D
DDD
D
D
D
D
D
D
D
D
H
H
H
D
D
D
D
D
D
D
DDD
D
D
H
H
D
H
D
D
D
D
DD
H
D
DD
D
H
D
H
D
H
D
D
D
H
H
H
D
D
D
D
H
H
DD
DD
D
HH
D
D
H
D
H
D
H
D
D
D
H
DD
H
H D
D
D
DD
D
D
H
D
D
D
DD
D
D
DD
D
D
HH
D
DD
D
H
DD
D
H
D
D
D
DD
D
D
DD
D
D
D
D
D
D
H
H
DD
D
DD
D
D
D
H
DD
D
D
HH
H
D
DD
H
D
D
D
D
D
D
H
D
D
D
H
DD
D
D
DDD
D
D
HH
D
D DDD
H
H
H
D
D
D
D
D
H
D
D
D
D
H
D
D
H
D
H
D
D
HH
DD
DDDD
D
H
H
H
D
D
H
DH
H
D
D
H
D
D
D
H
HH
D
DD
D
H
D
D
DDD
D
D
H
H
H
H
D
D
H
D
D
H
D
D
D
D
D
H
H
H
H
HH
H
H
D
DD
D
H
H
H
H
H
D
H
H
D
D
D
H
HH
D
H
H
D
D
D
H
H
H
D
H
H
DDD
H
H
H
D
D
H
H
D
H H
H
H
H
H
H
D
H
H
D
H
H
D
DD
H
H
H
D
D
HH
H H
D
D
H
H
H
H
D
H
H
D
D
D
H
H
HH
D
H
H
H
H
H
DD
H
D
H
D
D
D
H
D
D
D
H
H
D
H
H
D
H
D
H
H
D
H
H
H
D
H
H
D
H
D
H
HH
D
H
D
D
H
D
H
DD
D
D
D
DD
D
D
H
H
H
H
H
D
H
H
H
D
D
D
D
D
D
D
DD
D
D
D
D
D
D
D
H
DD
H
D
D
D
D
D
D
D
D
H
D
H
H
D
D
H
DD
DD
D
H
D
H
D
H
D
HD
H
H
H
D
D
D
D
D
D
H
D
D
D
DD
D
D
D
D
H
D
D
H
H
D
D
H
D
D
D
H
H
H
H
H
D
D
H
D
DD
D
H
H
H
H
H
H
DDD
D
D
D
H
D
D
H
D
H
D
D
D
D
DDHH
D
D
H
DD
D
D
D
D
DDD
DD
H
D
D
DD
D
H
D
D
D
D
D
H
H
D
D
H
D
D
H
H
DD
H
D
H
D
D
D
H
H
D
H
D
H
D
H
D
D
DD
H
H
D
D
D
D
D
H
DD
H
H
D
H
D
H
H
D
D
D
D
D
H
H
H
D
H
H
H
H
H
H
H
D
H
D
D
D
D
D
H
D
D
H
D
H
HH
D
H
H
DDD
DD
D
H
D
H
H
D
D
H
D
D
H
H
D
DDD
D
DD
H
D
D
DD
DDD
H
D
D
H
DD
H
H
D
H
H
H
D
H
H
D
H
H
D
D
H
D
H
H
D
HH
H
D
H
D
H
D
H
H
H
H
D
H
H
D
D
H
H
H
D
H
H
D
H
H
H
H
H
D
D
D
D
H H
DD
D
D
H
D
D
D
H
H
D
DD
D
D
H
H
H
H
H
H
D
H
HD
D
DD
H
H
DD
DD
H
D
H
H
D
H
D
H
D
DD
D
D
H
D
D
H
D
H
H
H
H
H
H
H
H
D
H
H
H
D
H
H
D
D
D
H
H
D
DH
H
D
D
D
D
D
D
H
H
D
H
D
H
D
D
DH
H
H
H
H
D
D
D
H
H
H
H
H
H
H
H
H
HH
H
H
D
H
H
H
D
H
H
D
H
H
H
H
H
H
H
D
H
H
H
H
D
D
H
H
D
H
H
H
H
H
H
H
H
H
D
D
D
D
D
D
D
D
D
H
D
D
H
D
DD
H
D
D
D
D
H
H
D
H
H
D
HH
D
H
D
DD
DDD
H
D
H
H
DD
DD
H
H
H
D
D
D
H
D
D
DD
D
D
DD
DD
DDD
D
H
D
DDDD
D
DD
D
DDDD
D
D
D
DH
D
DD
H
D
H
H
D
D
DD
H
DD
DD
D
D
D
D
D
D
D
H
DDDD
D
H
D
H
D
H
H
H
H
D
D
D
H
DD
D
D
DDD
DD
HH
H
DH
H
DD
D
D
D
H
H
H
DD
D
D
D
DD
D
H
D
H
D
DD
DD
D
H
D
D
D
D
DD
DD
D
H
H
H
H
HH
H
H
H
DD
H
H
D
H
D
H
D
DDD
H
D
DD
HH
H
DD
D
H
D
H
H
H
H
H
D
H
D
HH
H
H
H
HH
D
H
HH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
D
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
D
H
H
H
H
H
H
D
HH
H
H
D
H
H
H
H
H H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
HH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
HH
H
D
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
HH
H
D
H
H
H
H
H
H
D
H
D
H
H
H
H
HH
D
H
H
H
H
H
H
H
D
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
HH
H
H
H
D
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
HH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
HH
H
H
H
H
D
H
H
D
H
D
H
D
HH
H
D
D
H
D
H
H
H
H
H
H
H
H
D
H
D
H
H
D
H
H
D
D
D
H
H
D
H
H
D
H
H
H
H
D
H
D
H
H
H
H
H
H
H
H
D
H
H
D
H
H
H
D
H
H
D
H
D
H
H
H
D
H
H
D
D
H
H
H
D
D
H
D
H
H
H
H
HD
H
H
H
H
H
H
H
H
H
DH
H
D
D
D
H
D
H
H
H
H
H
H
DD
H
D
D
D
H
D
H
H
H
H
HH
H
H
D
H
DD
H
H
D
H
H
H
D
D
H
H
H
H
D
D
H
D
D
D
DD
D
H
H
H
H
H
D
H
H
D
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
HH
D
H
H
D
H
H
H
H
H
HH
H
H
H
H
H
H
H
H
H
H
D
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
DD
H
H
H
D
H
H
H
H
H
H
H
H
D
H
H
D
H
D
H
H
H
H
H
H
HH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H H
H
H
D
H
D
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
D
DD
H
D
H
H
H
D
H
H
H
H
H
H
H
H
H
H
D
H
H
H
D
H
H
H
H
H
H
D
D
H
H
H
H
H
H
D
H
H
D
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
HH
H
H
H
HH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
D
D
H
H
H
H
D
H
H
H
H
H
D
H
D
H
D
H
H
D
D
H
H
H
H
H
D
H
D
H
H
H
H
H
H
H
H
H
HH
H
H
H
HH
H
H
H
H
H
H
H
H
H
D
H
H
H
HH
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
H
D
H
H
D
H
H
H
H
H
H
H
H
H
H
D
H
H
H
H
H
H
H
H
H
H
H
H
D
H
D
H
H
H
H
H
H
H
H
H
H
H
D
H
H
HH
D
H
H
H
H
H
H
H
H
D
H
H
HH
D
D
H
H
H
H
H
H
H
HH
D
D
D
H
H
DD
D
H
H
D
D
H
D
DD
D
H
H
D
D
H
DD
H
H
D
H
H
D
D
DD
D
H
H
D
D
D
D
DD
H
D
H
H
H
D
DD
H
D
D
D
H
D
DD
D
D
D
D
D
D
DDD
D
D
D
D
DD
D
D
D
D
D
D
D
D
D
D
H
D
D
DD
D
D
D
D
D
D
D
H
H
D
D
D
DD
D
D
H
D
DD
D
H
D
H
D
H
D
D
H
D
H
DD
D
H
H
D
D
H
H
H
H
H
D
D
D
H
D
H
H H
D
D
D
D
D
D
D
H
D
H
D
H
DD
D
D
H
D
DD
D
D
D
D
D
H
H H
D
HH
H
H
D
D
H
D
D
DD
D
H
H
D
D
H
D
H
H
H
DDD
DD
D
D
D
D
D
D
D
H
D
D
H
D
D
D
D
D
DD
D
D
D
D
H
D
H
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
DD
D
D
D
D
D
D
D
H
D
H
DD
D
D
H
H
D
D
D
DDD
D
D
DD
D
D
H
D
D
H
D
DD
D
D
D
H
D
D
H
H
D
D
D
DD
H
D
D
H
H
D
D
D
D
H
H
H
H
D
H
D
H
D
DD
D
D
H
D
D
D
D
D
H
D
D
D
D
D
D
D
D
H
D
H
H
H
D
D
D
H
D
D
D
H
H
D
D
D
D
H
D
D
D
D
H
H
D
H
H
HD
H
D
H
D
H
DD
H
D
H
DD
H
H
D
H
H
H
D
H
H
D
H
H
D
DD
D
DD
D
D
D
T32
T33
T34
T35
T36
T37
T38
T39
T40
T32
T33
T34
T35
T36
T37
T38
T39
T40
R3W5R4R5R6R7R8R9
R3W5R4R5R6R7R8R9
Caroline
Sections (Gross/Net) 27.5 / 8.7
Avg. WI % 32%
Royalty Interest Sections 1.5
• Caroline is currently producing ~138 boe/d
• The main producing formations within Caroline are the Ellerslie and Viking
• Area competitors have been targeting the Cardium and Mannville formations recently
• Sinopec has identified 12 vertical upside locations for this asset
– 6 Mannville
– 6 Viking
Average Production for H1 2018
Oil
(bbl/d)
NG
(Mcf/d)
NGL
(bbl/d)
Total
(boe/d)
14 647 16 138
LEGEND
Sinopec Land
Third Party Wells
Sinopec Wells
Upside Locations
6
Retlaw
Sections (Gross/Net) 7.8 / 2.2
Avg. WI % 29%
Royalty Interest Sections 2.4
• Retlaw is currently producing ~58 boe/d
• The main producing formations within Retlaw are the Glauconite (Mannville) & the Bow Island
• Area competitors have been targeting various Mannville formations recently
• Sinopec holds a majority ~65% working interest in the G2G Mannville oil pool
– Sinopec owns a 65% WI in the 08-13-12-18W4 Battery
• Sinopec has identified 3 upside locations for this asset:
– xx-13-12-18W4 Glauconite upside location –Sinopec WI – 65%
– xx-12-12-18W4 Glauconite upside location –Sinopec WI – 65%
– xx-12-12-18W4 Mannville upside location –Sinopec WI – 65%
Average Production for H1 2018
Oil
(bbl/d)
NG
(Mcf/d)
NGL
(bbl/d)
Total
(boe/d)
45 68 1 58
LEGEND
Sinopec Land
Third Party Wells
Sinopec Wells
Upside Locations
B
7
Additional Assets Overview
RETLAW
CHIPMAN
BUCK LAKE
MEANOOK
BAPTISTE
CALLING LAKE
CAROLINE
BREWSTERFERRYBANK
MINNEHIK
• Baptiste
– 7 Sections (5.4 Net)
– No current production
– Main producing formations in the area: Grand Rapids & Wabamun
• Brewster
– 1 Section (0.65 Net)
– No current production
– Main producing formations in the area: Upper Mannville (Wilrich & Falher)
• Chipman
– 12 Sections (9.6 Net), 2 Royalty Sections
– Production ~4 boe/d
– Main producing formations in the area: Ellerslie, Mannville & Viking
• Meanook
– 15.75 Sections (3 Net), 12.75 Royalty Sections
– No current production; Main producing formation for the area: Mannville
– Majority of ownership in the form of a GORR
• Ferrybank
– 1.5 Sections (1 Net)
– Production ~5 boe/d; Main producing formation for the area: Mannville
– Sinopec holds a ~2.45% interest in the “Ferrybank Belly River Gas Unit”
• Minnehik
– 1 Section (0.4 Net), 1 Royalty Section
– No current production. Past Production of 0.2 boe/d (GORR production)
– Main producing formation in the area is the Cardium
8
None of Sinopec, its affiliates or any of their officers, directors, shareholders, employees, consultants, advisors, agents or representatives
(collectively, "Representatives") make any representation or warranty, express or implied, in connection with any of the information made
available pursuant to the transaction process described herein, including, but not limited to the Assets, or the past, present or future value of the
anticipated production, reserve or resource potential, cash flows, income, costs, expenses, liabilities and profits, if any, to be derived from the
Assets. Accordingly, any company, or other interested party, receiving such information will rely solely upon its own independent examination
and assessment of any such information in making a decision on whether and how to submit a proposal on any or all of the Assets. Only such
representations or warranties that are contained in a definitive agreement with respect to a transaction, when, as and if executed and subject to
such conditions or limitations or restrictions as may therein be specified, shall have any legal effect. None of SDEL, its affiliates or their
Representatives shall have any liability to any party receiving information pursuant to the transaction process described herein, nor to any
affiliate, partner, member, officer, director, shareholder, employee, consultant, advisor, agent or representative of such party from the use of any
such information in assessing whether and how to submit a bid on any or all of the Assets.
This document is for informational purposes only and is not intended to be an offer that is capable of acceptance or create any binding
obligation on SDEL, contractual or otherwise, to enter into any transaction with anyone receiving this document.
SDEL reserves the right at any time and without prior notice and without assigning any reason therefore: (i) to terminate the further participation
by a recipient or any other person or entity in the transaction process, (ii) to modify any of the rules or procedures relating to such process, (iii)
to terminate entirely such process and (iv) to amend or supplement the information provided herein. No representation or warranty (whether
express or implied) has been made by SDEL, its affiliates or their Representatives with respect to the transaction process or the manner in
which the transaction process is conducted and any party receiving this Memorandum disclaims any such representation or warranty. None of
SDEL, its affiliates or their Representatives are under any obligation to negotiate with or accept any offer or proposal by any person or entity
regarding a transaction.
Sinopec Legal
