True Energy Trust (“True” or the “Company”) has initiated a process for the divestiture of its Saskatchewan portfolio of assets and has retained Scotia Waterous Inc. (“Scotia Waterous”) as its exclusive financial advisor to assist in this process.
PACKAGE OVERVIEWS
The offering is grouped into five packages (the “Packages”) as outlined on the following map and property descriptions:
TOTAL OFFERING HIGHLIGHTS
- Five packages offering h igh working interest and operatorship
- Significant inventory of opportunities including development locations, recompletions and enhanced recovery
- Ownership of key facilities and infrastructure in the area
- Extensive 3D seismic coverage
- Large geographically focused land position including 156,000 net acres of undeveloped land
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- Production (1)
- December 2007: 5,596 boe/day; 62% oil weighted (97% heavy oil/ 3% light oil)
- Reserves (1)(2)
- Total Proved: 11.0 MMboe
- Proved +Probable: 18.8 MMboe
- Land
- 306,549 acres (249,631 net)
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PACKAGE HIGHLIGHTS
Kerrobert Package
- Operated thermal and cold flow production with significant upside potential
- Waseca heavy oil (11° API); Viking light oil (36° API);
- Potential for improved recovery efficiencies of significant in place volumes; 100% working interest
- Waseca SAGD, Cyclic Steam and cold flow development potential
- Viking light oil resource play development
- Facilities include a 100% W.I. in a SAGD facility at Kerrobert
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- Production (1)
- December 2007 (W.I.): 1,994 boe/day (100% oil)
- Reserves (1)(2)
- Proved + Probable: 11.4 MMboe
- Land
- 18,956 acres (15,602 net)
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Dodsland/Stranraer Package
- Viking oil and gas with downspacing opportunities
- Viking gas production
- Company operated wells and infrastructure, over 90% average working interest
- Viking oil and gas resource development
- Heavy oil development potential
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- Production (1)
- December 2007 (W.I.): 833 boe/day (94% natural gas)
- Reserves (1)(2)
- Total Proved: 2.2 MMboe
- Proved + Probable: 2.8 MMboe
- Land
- 147,316 acres (128,040 net)
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Smiley Package
- Bakken heavy oil property with infill opportunities
- Bakken heavy oil (16° API); Viking light oil (30° API); non-associated gas
- Company operated, 94% average working interest
- Multi-zone production and exploitation potential
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- Production (1)
- December 2007 (W.I.): 849 boe/day (45% oil)
- Reserves (1)(2)
- Total Proved: 1.2 MMboe
- Proved + Probable: 2.1 MMboe
- Land
- 35,245 acres (26,434 net)
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Coleville/Driver Package
- Combination of operated and non-operated production
- Primarily Bakken gas and heavy oil (12° API)
- Multi-zone production and exploitation potential
- Reserves assigned to one of 23 development drilling locations identified
- Miscellaneous other Saskatchewan properties are included in this package
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- Production (1)
- December 2007 (W.I.): 937 boe/day (90% gas)
- Reserves (1)(2)
- Total Proved: .7 MMboe
- P+P: 1.1 MMboe
- Land
- 95,892 acres (73,116 net)
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Mantario Package
- Heavy oil pool with infill development and waterflood opportunities
- Rex heavy oil (13 ° API); Waseca and Viking gas
- Company operated wells and facilities
- Rex infill well development opportunites
- Waterflood development potential
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- Production (1)
- December 2007 (W.I.): 984 boe/day (95% oil)
- Reserves (1)(2)
- Total Proved: .9 MMboe
- P+P: 1.3 MMboe
- Land
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Notes:
(1) Production figures are based on December 2007 estimated W.I. sales volumes
(2) Production and reserve volumes are working interest before royalties
(3) Reserve volumes are based on GLJ's December 31, 2007 evaluation
RESERVES
GLJ Petroleum Consultants (“GLJ”) has completed a reserve evaluation for the Offering effective December 31, 2007. The price forecast used in the reserve evaluation is INCO (Industry Consensus), January 2008.
pROCESS
Summary information on the True opportunity, including a map of the Packages, and production and reserves summaries, is available by clicking on ‘True Intromap'. The reserves summaries are based on the GLJ reserve evaluation. The Information Memorandum for the True opportunity will be available for review the week of January 28, 2008, and will provide further detail on the process and on the assets, including property descriptions, development opportunities, and summaries from the GLJ reserve evaluation.
TIMETABLE
The timetable for the process is expected to be as follows:
| Milestone |
Date |
Confidential Information Available |
week of January 28, 2008 |
Information Memorandum Available |
week of January 28, 2008 |
Non-binding Proposals Due (5:00pm) |
March 4, 2008 |
True's preference is for a single transaction, however, Proposals will be accepted for individual, or any combination of Packages. This transaction will be an “asset sale” type transaction. While consideration will be given to all proposals, cash proposals will be given strong preference by True. Further information regarding proposals and transaction structure will be available in the Information Memorandum and to parties that have executed the True Confidentiality Agreement.
CONFIDENTIAL INFORMATION
Confidential information is available in the on-line Virtual Data Room and the Physical Data Room (collectively, the “Confidential Information”). Parties that would like access to the Confidential Information will be required to execute and deliver two copies of the True Confidentiality Agreement to Scotia Waterous. The True Confidentiality Agreement can be obtained by contacting a Scotia Waterous representative listed below, or by clicking on ‘True Confidentiality Agreement'.
CONTACTS
If you have any questions regarding this opportunity, please contact a Scotia Waterous representative listed below:
