Enercapita Energy Ltd. (“Enercapita” or the “Company”) has engaged Sayer Energy Advisors to assist with the sale of certain oil and natural gas assets located in the Vegreville area, specifically in the Bruce, Viking and Willingdon areas of central Alberta (the “Properties”). 

The Properties consist of both operated and non-operated interests. The Company’s intent is to divest all of its interests in the Properties. 

Average daily production net to Enercapita from the Properties in October 2020 was approximately 1.4 MMcf/d of natural gas and six barrels of oil and natural gas liquids per day (238 boe/d). 

Enercapita has identified substantial upside potential at Vegreville with approximately 34 new drilling locations and ten recompletion opportunities. In the fourth quarter of 2020, the Company expects to easily add over 200 Mcf/d of natural gas production at Viking through restarting four wells with total capital expenditures of approximately $42,000. 

The operations include stimulation and replacing coil tubing in the 100/13-16-048-13W4 well, recompleting and installing coil tubing in the 100/14-28-047-13W4/0 well, repairing tubing and changing the bottom hole pump in the 100/16-22-047-13W4/2 well and by changing the bottom hole pump in the 100/16-32-047-13W4/3 well. At Willingdon, the Company has identified a drilling location targeting oil in the Lower Mannville at 16-22-53-13W4.

Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of Enercapita’s properties as part of the Company’s year-end reporting (the “Sproule Report”). The Sproule Report is effective December 31, 2019, using Sproule’s December 31, 2019 forecast pricing. Sproule estimated that as of December 31, 2019 the Properties contained remaining proved plus probable reserves of 1.4 Bcf of natural gas and 39,000 barrels of oil and natural gas liquids (268,000 boe), with an estimated net present value of approximately $1.1 million using forecast pricing at a 10% discount.

Summary information relating to this divestiture is attached to this correspondence. More specific information is available at www.sayeradvisors.com. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement.

Cash offers relating to this divestiture will be accepted until 12:00 pm on Thursday, December 10, 2020.

For further information please feel free to contact: Ben Rye, Grazina Palmer or Tom Pavic at 403.266.6133.