The City of Medicine Hat (the “City”) has engaged Sayer Energy Advisors to assist the City with the sale of its non-operated interest in the Medicine Hat Glauconitic “C” East Unit (the “Property”). In the Medicine Hat area of Alberta, the City holds a 27.6263% working interest in the Medicine Hat Glauconitic “C” East Unit operated by Enerplus Corporation.

 The Unit produces heavy oil, 14-18° API, under waterflood and localized polymer injection. Currently 11 sections are under waterflood and three sections are under polymer injection.

 Average production net to the City from the Unit for June 2020 was approximately 931 boe/d (915 barrels of oil per day and 100 Mcf/d of natural gas).

McDaniel & Associates Consultants Ltd. (“McDaniel”) prepared an independent reserves evaluation of the City’s properties as part of the City of Medicine Hat’s year-end reporting (the “McDaniel Report”). The McDaniel Report is effective December 31, 2018, using McDaniel’s January 1, 2019 forecast pricing.

McDaniel estimates that, as of December 31, 2018, the Medicine Hat property contained remaining proved plus probable reserves of 6.6 million barrels of heavy oil and 614 MMcf of natural gas (6.7 million boe), with an estimated net present value of $89.8 million using forecast pricing at a 10% discount.

Further details regarding the marketing process can be found on our website at www.sayeradvisors.com. Summary information relating to this divestiture is attached to this correspondence. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement.

Cash offers relating to this opportunity will be accepted until 12:00 pm on Thursday October 8, 2020.

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