Primrose Drilling Ventures Ltd.: Corporate Divestiture

Primrose Drilling Ventures Ltd. (“Primrose” or the “Company”) has engaged Sayer Energy Advisors to assist it with a sale of the shares of the Company.

The Company currently has positive working capital of approximately $1,700,000.

The Company also holds an operator’s license in Saskatchewan but currently does not own any oil and natural gas interests in Saskatchewan. Primrose is a tightly-held private company with only one shareholder and no debt or severance obligations. The shares of Primrose are held by 1280417 Alberta Ltd.

As of April 1, 2023, Primrose had total deemed assets of $1.0 million, deemed liabilities of ($939,416) (net deemed assets of $85,695) with an LMR of 1.09. These numbers include Primrose’s security deposit with the Alberta Energy Regulator of approximately $263,916.

The Company prepared an internal reserves evaluation of the Properties (the “Reserve Report”) as part of the Company’s year-end reporting. The Reserve Report is effective January 1, 2023, using an average of GLJ Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited’s March 31, 2023, forecast pricing (“3C Average”). Primrose estimated that, as at January 1, 2023, the Properties contained remaining proved developed producing reserves of 69,000 barrels of oil and natural gas liquids and 493 MMcf of natural gas (151,000 boe), with an estimated net present value of $1.4 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.

Proposals relating to this process will be accepted until 12:00 pm on Thursday, June 29, 2023.

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

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