Receivership Sale: Animus Capital Partners Inc. — Ernst & Young Inc. — Ranch Energy Corporation
Animus Capital Partners Inc. (“Animus”) has been engaged as exclusive financial advisor to assist Ernst & Young Inc. (“EY”), in its capacity as Court appointed Receiver and Manager of Ranch Energy Corporation (“Ranch” or the “Company”), with EY launching a broadly marketed sales process for the Ranch oil & gas properties.
Ranch has natural gas producing assets located in the Wildboy, Cordova, and Fort St. John areas of northeastern British Columbia. The Company has high working interests, along with 100% ownership and operatorship of a central 140 mmcf/d gas plant in the area. The Company’s Fort St. John production is currently shut-in.
Sproule Associates Limited prepared an independent reserves evaluation of Ranch’s properties as part of the Company’s year-end reporting (the “Sproule Reserves Report”). The Sproule Reserves Report is effective December 31, 2017 using Sproule’s January 1, 2018 price forecast.
The Sproule Report estimated that Ranch’s oil & gas properties contained remaining proved plus probable reserves of 116.8 Bcf, with an estimated net present value of $78.8 million, using a 10% discount rate and forecast pricing.
The information memorandum and confidentiality agreement will be disbursed shortly. Data room access and more specific information will be made available to parties that execute a confidentiality agreement.
Phase 1 Bids are due October 25, 2018. Any oil & gas property sale will be completed on an “as is, where is” basis and subject to approval of the Court.
Animus invites parties interested in acquiring the assets of Ranch to contact any of the Animus team listed below:
Mathew August, Executive Managing Director – Energy
Brett Stevenson, Managing Director – Energy
- Asset Sales and Acquisitions