sinopec canada property divestiture - wapiti montney ... · sinopec canada 2700, 112 – 4th avenue...

Bid Deadline: 12:00 pm October 4, 2019

SINOPEC CANADA

WAPITI MONTNEY LAND DIVESTITURE

OVERVIEW

INFORMATION

Sinopec Canada 2700, 112 – 4th Avenue SW, Calgary, Alberta Canada T2P 0H3 Tel: 403.266.6900 www.sinopeccanada.com

Sinopec Canada: Wapiti Area Montney Land Divestiture

BID DEADLINE: 12:00 pm October 4, 2019

Montney Land Divestiture:

Wapiti Area, Alberta

Sinopec Canada (“Sinopec”) is looking to

divest of a portion of its prospective

Montney rights located in the Wapiti Area

of Alberta (the “Property”).

The Wapiti Property consists of Sinopec’s

89% average working interest in 55,200

acres (86.25 gross sections) of Crown

Montney Rights. In addition, Sinopec

holds a working interest in 3 horizontal

and 2 vertical Montney wells.

Sinopec’s Montney acreage at Wapiti is

directly offset to the East by recent

Montney drilling activity by Seven

Generations Energy Ltd., Shell Canada

Limited, Canadian Natural Resources

Limited, Paramount Resources Ltd. and

NuVista Energy Ltd.

PROCESS & TIMELINE

Sinopec Canada is accepting offers to purchase the Property until 12:00 pm on October 4, 2019.

Sinopec has split the Property into Blocks of land, interested parties may submit bids on

individual Blocks or a combination of Blocks.

All proposals / deal structures (i.e. sale, swap / exchange or farmin) will be considered,

however, strong preference will be given to swaps and cash offers.

Additional confidential information / data regarding Sinopec’s Wapiti Montney Property will be

made available to interested parties who execute a confidentiality Agreement (“CA”). A copy of

the CA will be made available to interested parties upon request.

Calgary

Edmonton

WAPITI


Montney Land Divestiture BID DEADLINE: 12:00 pm October 4, 2019

Wapiti Property Township 65-68, Ranges 6-10W5

Property Overview

At Wapiti, Sinopec holds an average 89% working interest in the PNG Rights in the Montney

Formation in 55,200 acres (86.25 gross sections) of land. In addition, Sinopec has a working

interest in 3 horizontal Montney wells (100% in 2 wells and 50% in 1) and 2 vertical Montney

wells (100%).

The majority of Sinopec’s Montney lands in the Wapiti area are Intermediate Term Licences with

expiry dates in 2020 - 2021. Approximately 13 of the sections are currently continued under

Section 15 (Indefinite) of Alberta PNG Tenure Regulations, with at least 16 additional sections

eligible for continuations from the Alberta Crown based on current activity as per Section 15

(Indefinite) and/or Section 17 (1 year) of the regulations.

BLOCK 1

BLOCK 2

BLOCK 5

BLOCK 4

BLOCK 3



Recent Offset Drilling Activity

Sinopec’s Montney acreage at Wapiti is directly offset by recent Montney drilling activity by

Seven Generations Energy Ltd., Shell Canada Limited, Kicking Horse Oil & Gas Ltd. and Orlen

Upstream Canada Ltd. in the in the Kakwa Area. To the East, Sinopec’s Wapiti lands are offset by

recent activity by NuVista Energy Ltd., Paramount Resources Ltd. and Canadian Natural

Resources Limited in the Bilbo Area.

Seven Generations 100/07-15-065-07W6/00 Drilled & Cased Q1 2018

~3,600 m LL

Seven Generations 100/15-22-064-07W6/00 RR: Sept 2018

Status: Testing Gas

Orlens

Kicking Horse 100/01-30-063-06W6/00 >3,000 m LL Testing Gas (Q1 2019)

NuVista,

Paramount & Shell

Shell 100/03-11-066-07W6/00 Drilled & Cased Q1 2019

~3,000 m LL

Kicking Horse 103/16-29-063-06W6/00 >3,000 m LL

On Production Sept 2018

Cum Prod: ~0.78 Bcf

NuVista, Seven

Generations and

Canadian Natural

SemCams New Wapiti Sour Gas Plant

07-035-067-07W6

NuVista Energy 100/04-13-067-07W5/00 On Production Sept 2018 Cum Prod: ~0.5 Bcf



Sinopec Canada

Wapiti Area, Alberta

Montney Land Divestiture

CONTACT INFORMATION

Please direct any correspondence, inquires or proposals/offers relating to the Property to:

Chris Clark

Manager, Land

Tel: 587.952.5356

[email protected]

Disclaimer:

The information contained in this Property Overview is provided without any representation or warranty as to the accuracy or completeness thereof and is for informational purposes only. Any interested party is to rely on its own independent analysis and evaluation to form the basis of any investment decision. This opportunity is provided on a non-binding, non-exclusive basis and Sinopec expressly reserves the right to modify or change this process in any way at any time, including terminating the process; and reserves the sole right to negotiate with any third party on any issue or accept or reject any proposal(s) at its sole discretion without notice. Any negotiated transaction would still be subject to the approval of Sinopec’s senior management including any required approvals by Sinopec International Petroleum Corporation. Nothing in this Property Overview is intended to create any binding rights or obligations whatsoever of Sinopec.

Calgary

Edmonton

WAPITI

sinopec canada property divestiture - wapiti montney ... · sinopec canada 2700, 112 – 4th avenue...

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