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Bernum Petroleum Ltd.


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AltaCorp Capital Inc. (“AltaCorp”) has been engaged by Bernum Petroleum Ltd. (“Bernum”) as its exclusive advisor in its Corporate Divestiture process. Bernum is a private company with the majority (90%) of the equity held by a single major shareholder and management. This will be a competitive process and the owners’ preference will be for cash consideration.

Bernum is currently producing approximately 675 boed at 80% oil. The main assets are located at Bellis; heavy oil, in east central Alberta and Roxana; light oil, in west Central Alberta.

At Bellis, Bernum has captured the heart of a 150 MMbbl original-oil-in-place Sparky pool at 100% WI, only 1% of which has been recovered to-date. Consistent pay is mapped using log and 3-D seismic data at a depth of 575 m, with over 50 quad-leg horizontal locations identified. The oil is 16o API with a viscosity of 1,200 cp. The reservoir consists of a high permeability, consolidated sand with a solution gas drive, allowing it to cold flow.

22 wells have been drilled on the play and, in the process, Bernum has determined that it is most efficient to drill 1-mile quad-leg horizontal wells at a cost of approximately $ 1.7 MM; drilled, completed and equipped. The 1-mile quad-leg horizontals have been coming on-stream up to 180 bbl/d with expected primary recoveries of 150 – 200 mbbl oil per well.

With the superior reservoir quality (Darcy permeability) at Bellis, additional reserves can be realized at Bellis with a commercialized waterflood project. A pilot waterflood has been implemented in the north half of section 36-058-17W4 and has demonstrated that waterflooding can moderate production declines as well as deliver incremental recoverable reserves. This has been seen with the 13-36-059-17W4 and 14-36-058-17W4,  ½-mile long producers offsetting the pilot injection well.

Bernum tank treats the oil at Bellis, which then trucks clean oil to Hardisty. Additional infrastructure at Bellis includes a water disposal well and water injector, also at 100% WI. Netbacks in 2018 are forecast to be in the range of $ 20 / boe at strip pricing.

Bernum represents a unique opportunity to acquire an early-stage, low-cost project with a sizeable development inventory

Process Description:
Review of Documents: Commencing December 8, 2017
Bid Deadline: January 11, 2018 at 4:00pm MST

 

 

For further information, please contact:

Leslie Kende, P. Eng., MBA
Managing Director
Acquisitions & Divestitures
Tel: 403.539.8622
lkende@altacorpcapital.com