Acquisition Oil Corp. (“AOC” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its oil and natural gas interests located in the Prestville area of Alberta (the “Property”).

At Prestville, AOC holds primarily a 100% working interest in 23 sections of land. The Property comprises long-life oil production from the Slave Point Formation. The Slave Point reservoir contains an estimated 18.5 million barrels of original oil in place. The Slave Point D Pool has been under waterflood since 2021. The Company has infrastructure and facility capacity at Prestville capable of handling full development of the Property. Production from the Property is currently limited by wellhead injection capacity.

Average daily production net to AOC from Prestville for the six months ended June 30, 2024 was approximately 294 boe/d, consisting of 259 bbl/d of oil and natural gas liquids and 211 Mcf/d of natural gas.

Operating income net to AOC from Prestville for the six months ended June 30, 2024 averaged approximately $282,000 per month, or $3.4 million on an annualized basis. 

As of October 5, 2024, the Property had a deemed net asset value of $9.0 million (deemed assets of $13.0 million and deemed liabilities of $3.9 million), with an LMR ratio of 3.29.

AOC prepared an internal reserves evaluation of the Property (the “Reserve Report”) as part of the Company’s year end reporting. The Reserve Report is effective January 1, 2025 using flat Edmonton oil par pricing of $86/bbl and natural gas pricing of $2.25/MMbtu inflated to $3.50/MMbtu by 2031.  AOC estimates that, as at January 1, 2025, the Property contains remaining proved plus probable reserves of 2.3 million barrels of oil and natural gas liquids and 2.1 Bcf of natural gas (2.6 million boe), with an estimated net present value of $33.8 million using forecast pricing at a 10% discount.

Summary information relating to this divestiture will be sent to any party executing a Confidentiality Agreement. 

Cash offers relating to this process will be accepted until 12:00 p.m. on Thursday, January 16, 2025.

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