The following information is provided by Energy Advisors Group Inc. (EAG), formerly PLS Divestment Services. All inquiries on the following listings should be directed to EAG. EnerCom Inc. is not a brokerage firm and does not endorse or facilitate any transactions.

Deal Summary

Energy Advisors Group’s Canadian office is assisting a Canadian independent in the sale of their water disposal well and associated system assets in North East, British Columbia.  The water disposal well and system is located 11km from the town of Hudson Hope, just off BC Highway 29, a primary highway linking the Alaska Highway with the John Hart Highway.

The EAG client was permitted to continue their disposal operations in December 2017 after a temporary suspension which was appealed and lifted. Before being shut in the operation was earning revenue of $190,000 Mn and cash flowing $141,000 Mn.   The area disposal system has a demonstrated capacity to take 250–300 m3/day but is limited by regulation to 200 m3/day into the Baldonnel Formation and requires the installation of a seismic monitor.

—1 SWD and Facility with 200-300 m3/day capacity
— Recent Disposal Volumes: 200 m3/day due to government regulations
—Projected Cash Flow After Returning To Production/Injection Cdn $141,625/Month
—~1,500m Pipeline Included In Negotiated Transaction
— Drilling rights in 56 sections including one PUD location for additional disposal wells

Water disposal assets are relatively hard to develop in NE BC due to scarce high porosity, high permeability formations resulting in high disposal costs ($30-$60/m3 + trucking). The presence of a good water disposal system at the fringes of the Western Canadian Sedimentary Basin together with the rights to develop further disposal wells creates a high potential opportunity in so much as operators manage operations within government regulations and environmental measures.

The Seller is highly motivated and request that all interested parties should contact Steve Henrich in EAG Calgary office

Asset Highlights

  • MONTNEY WATER DISPOSAL BUSN
  • Water Disposal Well & Facility.
  • HUDSON’S HOPE, BC (56 SECTIONS)
  • IDEAL SWD PROJECT TO EXPAND
  • BALDONELL INJECTION ZONE
  • Disposal Depth: 1,520-1,574m
  • Immediate SWD PUD Location.
  • 100% OPERATED OPPORTUNITY
  • Regulated Capacity of 200 m3/day
  • 1,500m Pipeline Included.
  • MOTIVATED SELLER NEEDS TO SELL
  • Prior Revenue: $191,625/Month
  • Prior Disposal Price: $35.00/m3
  • Prior Operating Income: $141,625/Month
  • SELLER SEEKS OFFERS BY JAN 2020

 

CEP Water DIsposal-Cover -Energy Advisors Group

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For more information, contact Steve Henrich, Canadian Representation with EAG, at [email protected] or 403-294-1906.


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