New North Resources Ltd. and OILPLUSWATER Inc. (collectively the “Companies”) have engaged Sayer Energy Advisors to assist the Companies with the sale of their 100% operated oil and natural gas working interest property located in the Grand Forks area of southern Alberta (the “Property”).

Daily production from Grand Forks for the month of September 2022 was approximately 46 barrels of medium oil per day.

Monthly operating income from Grand Forks for the eight months ended August 2022 totalled $600,000, or approximately $900,000 on an annualized basis.

As of October 1, 2022, the net deemed asset value for the Property was $94,028 (deemed assets of $2.1 million and deemed liabilities of $2.0 million), with an LMR ratio of 1.05.

Trimble Engineering Associates Ltd. (“Trimble”) prepared an independent reserves evaluation of the Property (the “Trimble Report”). The Trimble Report is effective August 31, 2022 using Trimble’s forecast pricing as at July 1, 2022. Trimble estimated that, as of August 31, 2022, the Property contained remaining proved plus probable reserves of 224,000 barrels of oil, with an estimated net present value of $3.3 million using forecast pricing at a 10% discount.

More specific information relating to this divestiture 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 process will be accepted until 12:00 pm on Thursday, December 8, 2022.

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