TAQA NORTH Introductory Letter

  TAQA NORTH Detailed Package Map

  TAQA NORTH Confidentiality Agreement

  TAQA NORTH Online Data Room

  TAQA NORTH Information Memorandum

TAQA NORTH to Divest Non-Core Canadian and North Dakota Properties  

 

TAQA NORTH Ltd. (“the Company”) has initiated a process to divest certain non-core oil and natural gas properties in Western Canada, Ontario and North Dakota and has retained FirstEnergy Capital Corp. (“FirstEnergy”) as its exclusive financial advisor for the offering ("the Offering”). The assets are divided into 14 property packages (“the Packages”) for description and review.

 

 

 

Production, Income and Reserves Summary
Package	Dec 2009			Annualized	Reserves Volumes						Reserves Values
	Average Production			2010	Total Proved			Proved Plus Probable			Pre-tax NPV@10%
	Liquids	Gas	Total	NOI	Liquids	Gas	Total	Liquids	Gas	Total	TP	P+P
	(bbl/d)	(Mcf/d)	(BOE/d)	(M$)	(Mbbl)	(MMcf)	(MBOE)	(Mbbl)	(MMcf)	(MBOE)	(M$)	(M$)
Laprise	427	9,549	2,019	16,363	1,338	35,428	7,243	1,908	50,468	10,319	129,747	161,222
Pembina-Thorsby	407	6,456	1,483	13,999	1,795	22,901	5,612	2,323	29,532	7,245	101,633	119,374
Minehead	193	4,148	884	7,968	1,090	21,129	4,611	1,405	27,230	5,943	62,628	78,045
Sousa	0	5,932	989	6,023	0	8,888	1,481	0	12,399	2,067	17,590	25,405
South Central AB	116	2,641	556	3,730	283	6,897	1,433	350	9,438	1,923	20,409	24,588
East Alberta	179	1,068	357	3,935	508	2,623	945	636	3,574	1,232	18,799	22,357
Southwest AB	94	2,181	457	871	566	11,976	2,562	697	15,249	3,239	18,402	21,355
South AB & SW SK	120	282	167	2,034	380	1,011	549	468	1,229	673	10,666	12,176
Northwest AB	110	1,235	316	1,651	163	2,904	647	253	3,946	911	8,794	12,061
Ontario	72	849	213	1,367	354	2,192	719	482	2,669	927	10,020	11,850
North Central AB	8	1,839	315	1,267	13	4,080	693	18	5,950	1,010	8,065	10,036
Boundary	39	1,418	275	1,385	123	2,830	594	154	3,559	748	8,545	10,078
North Dakota	58	0	58	1,132	197	0	197	249	0	249	5,096	5,947
Hangingstone	0	157	26	193	0	578	96	0	685	114	1,383	1,504
Total	1,823	37,755	8,116	61,916	6,811	123,436	27,383	8,943	165,928	36,598	421,776	515,998
Production is from December 2009 Financials. NPV's shown are before tax and use the appropriate Provincial/State royalty regime. Production volumes do not include royalty interest volumes.
Reserves prepared by GLJ Petroleum Consultants Ltd. Effective March 31, 2010 using 'Consultants Average' April 2010 forecast pricing and compliant with NI 51-101.

 

Key Attributes of the Divestiture Include:

The assets are heritage properties acquired from Northrock Resources Ltd., PrimeWest Energy Trust, Shiningbank Energy Income Fund and Pioneer Natural Resources. In most cases, these assets have received little capital reinvestment over the past number of years. The majority of the properties are located within multi-zone areas and have high components of producing reserves relative to booked upside. Most Packages include the Company’s interests in related gathering systems and facilities. Though working interests vary, the Company operates ~75% of the production from the Offering. Details on the 14 Packages include:

• December 2009 net sales production of 9.5 MMcf/d gas and 427 bbl/d NGL’s (2,019 BOE/d)
• 76% operated interest in Laprise Creek Baldonnel Unit #1
• 68% W.I. in 17,767 gross acres of land; concentrated and contiguous land position
• Low-decline, long reserves life production (9.8 years TP); 99% of Total Proved reserves are Proved Producing
• Large portfolio of exploration and development drilling opportunities
  • 3 PUD locations in GLJ Report; 22 additional unbooked locations defined on 3-D seismic

• December 2009 net sales production of 6.5 MMcf/d gas and 407 bbl/d oil & NGL’s (1,483 BOE/d)
• ~70% of production is operated; average 65% W.I. in 86,723 gross acres of land
• Production from the Glauconitic, Cardium, Belly River and Edmonton
• Low-risk opportunities have been identifed in over 10 different horizons
  • 3 PUD locations in the GLCC and HSC and 3 Probable opportunities in the EDM, BR
  • 12 PDNP opportunities in various zones from the Edmonton through to the Leduc

• December 2009 net sales production of 4.1 MMcf/d gas and 193 bbl/d oil & NGL’s (884 BOE/d)
• 76% W.I. in operated Minehead Property; additional minor interests in 4 units
• 66% of Total Proved reserves are Proved Producing; 14.2 year RLI on Total Proved reserves
• Multiple opportunities identified in Minehead Property
  • 5 Cardium horizontal infill PUD’s; 6 additional unbooked horizontal Cardium locations - liquids-rich gas
  • 2 PDNP opportunities: one Belly River recompletion and one Viking tie-in

• December 2009 net sales production of 5.9 MMcf/d gas (989 BOE/d); all from Bluesky-Gething
• 93% W.I. in 186,426 gross acres of land; includes 100% interest in Sousa Bluesky-Gething Gas Unit
• Substantial unbooked development opportunities
  • 58 Bluesky-Gething infill locations; both Unit and non-Unit
  • 2 shallow Quaternary Drift locations; potential gas development in the Wilrich Shale

• December 2009 net sales production of 2.6 MMcf/d gas and 116 bbl/d oil & NGL’s (556 BOE/d)
• ~70% of production is operated; average 45% W.I. in 68,871 gross acres of land
• Production focused at Penhold; interests in 6 units at Medicine River, Chedderville, Caroline, and Harmatton
• 91% of Total Proved reserves are Proved Producing
• Substantial opportunities; some in GLJ Report and other unbooked
  • 10 Edmonton Sands PUD and 9 Edmonton Sands Probable locations; 3 Edmonton PDNP recompletions
  • Unbooked broad development potential of Edmonton Sands and Horseshoe Canyon CBM

• December 2009 net sales production of 179 bbl/d oil & NGL’s and 1.1 MMcf/d gas (357 BOE/d)
• ~37% of production is operated; 51% W.I. in 63,977 gross acres of land
• Opportunities include 5 Cummings PUD locations and 1 Probable Ellerslie location
  • Additional opportunities include production optimization through injector conversions/reactivations

• December 2009 net sales production of 2.2 MMcf/d gas and 94 bbl/d oil & NGL’s (457 BOE/d)
• ~18% of production is operated; 52% W.I. in 20,884 gross acres of land
• 71% of Total Proved reserves are Proved Producing; 1 PDNP workover at Whiskey Creek for 636 MBOE
• Unbooked horizontal Cardium potential at Lochend covering 22 sections with high W.I. Cardium rights

• December 2009 net sales production of 120 bbl/d oil & NGL’s and 282 Mcf/d gas (167 BOE/d)
• ~6% of production is operated; 74% W.I. in 20,277 gross acres of land
• Minor unit interests at Little Bow, Enchant, Hays, Hilda and 50% interest in North Premier (SW SK)

• December 2009 net sales production of 1.2 MMcf/d gas and 110 bbl/d oil & NGL’s (316 BOE/d)
• ~61% of production is operated; 51% W.I. in 57,225 gross acres of land
• Includes the concentrated Windfall Property; minor interests at Sturgeon Lake, Gold Creek and Fox Creek
  • Production from the Gething, Nisku and Dunvegan
• Opportunities include 1 Probable Nisku location and 1 PDNP Mannville recompletion

• December 2009 net sales production of 849 Mcf/d gas and 72 bbl/d oil & NGL’s (213 BOE/d); all onshore
• 83% W.I. in 30,758 gross acres of land; including 100% interest in Rodney Unit (oil)
• Total Proved RLI of 9.2 years and Proved plus Probable RLI of 11.9 years, stable oil production
• Unbooked opportunities include infill drilling, recompletions and water flood optimization

• December 2009 net sales production of 1.8 MMcf/d gas and 8 bbl/d oil & NGL’s (315 BOE/d)
• ~85% of production is operated; 60% W.I. in 81,367 gross acres of land
• Opportunities include 2 recompletions assigned Probable, 1 assigned PDNP and 4 unbooked locations
  • Targeting the Belly River, Ostracod, Ellerlsie and Basal Quartz; 25%-100% W.I.

• December 2009 net sales production of 1.4 MMcf/d gas and 39 bbl/d oil & NGL’s (275 BOE/d)
• 50% W.I. in 61,498 gross acres of land
• Opportunities include 3 PDNP, HZ multi-stage fracture potential in Montney and 3 unbooked reactivations

• December 2009 net sales production of 58 bbl/d medium gravity oil from Wiley Glenburn Unit
• 8.44% interest in the Wiley Glenburn Unit (Encore L.P.-operated); potential candidate for CO₂ miscible flood

• December 2009 net sales production of 157 Mcf/d gas; operated by Paramount Energy Trust and Devon
• 35% W.I. in 26,557 gross acres of land; Gas-Over-Bitumen royalty credits

 

Parties who execute a Confidentiality Agreement (“CA”) will have access to confidential information that is available within an online data room and physical data rooms located at FirstEnergy’s offices. These will open the week of April 26, 2010 and will include reserves reports, well lists, lease operating statements, marketing summaries, geological mapping, well files and other relevant information. A seismic workstation loaded with selected data will be available within the physical data room. A copy of the CA is available on the FirstEnergy website at www.firstenergy.com/TAQA or can be obtained by contacting FirstEnergy directly. Non-binding proposals are due Thursday, June 3, 2010 at 2:00 PM (MDT).

 

Reserves for the Packages have been evaluated by GLJ Petroleum Consultants Ltd. (“GLJ”) with an effective date of December 31, 2009 and a look forward to March 31, 2010, utilizing ‘Consultants Average’ April, 2010 forecast pricing. To facilitate review, a Value Navigator data base of the reserves will be available within the confidential information.

 

FirstEnergy has prepared an Information Memorandum (“IM”) which includes detailed information relating to the Packages, reserves and opportunities. The IM will be available the week of April 26, 2010 and electronic copies will be available for download from the FirstEnergy website; hard copies can be obtained by contacting FirstEnergy personnel directly.

 

Offers will be considered on a Package, or combination of Packages, basis. Offers will not be entertained on individual properties. A detailed map illustrating the associated properties within the Packages is attached.

 

Please direct all correspondence and inquiries relating to the Offering to FirstEnergy at:

  

TAQA NORTH Information Memorandum

 

 Executive Summary

 Sales Procedure

 Laprise Package

 Pembina-Thorsby Package

 Minehead Package

 Sousa Package

 South Central Alberta Package

 East Alberta Package

 Southwest Alberta Package

 Southern Alberta & Southwest Saskatchewan Package

 Northwest Alberta Package

 Ontario Package

 North Central Alberta Package

 Boundary Package

 North Dakota Package

 Hangingstone Package