2011 Asset Divesment

 

Divestment Summary (PDF) | Confidentialty Agreement (PDF)

Detailed Information Memorandum

 

Bids Due November 29, 2011

ConocoPhillips (the “Company”) has retained RBC Rundle as their exclusive agent for the disposition of certain Canadian oil and gas properties (“Assets”) located in the provinces of Alberta and Saskatchewan. The Assets are offered in two groups that represent operationally distinct areas as follows:

• Camrose Area
• Hanna Area

Timeline and Process

Interested parties who execute a Confidentiality Agreement will have access to an online data room (“VDR”). The VDR will contain, among other items, detailed engineering reports, land schedules, and revenue and expense statements. Offers are anticipated to be due in late November. Further details on process, structure, and bid timing will be available to parties who execute a Confidentiality Agreement.

 

All inquires should be directed to RBC Capital Markets and not the Company.  

 

 

Divestment Highlights

•  Approximately 3,600 boe/d of established, low decline gas and oil production
•  Properties have been under-capitalized in recent years
•  Large land position of approximately 707,000 gross acres with an average working interest of 59%
•  Multi-horizon development potential for both oil and natural gas opportunities
•  Extensive working interest facilities and infrastructure provides leverage to proprietary production growth
•  Diverse seismic coverage of asset positions

 

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Camrose Highlights:

•  2,048 boe/d of gas weighted production (May 2011 net production) primarily from the Nisku/Wabamun, Viking, Cardium, and Belly River formations
•  Over 375,000 gross acres with an average WI of 63%
•  2P reserves 8,443 Mboe (NPV 10% $70,320M)
•  Significant number of completion opportunities and drilling locations defined
•  Waterflood opportunity in Upper Mannville Z5Z Pool
•  Viking horizontal oil development

Hanna Highlights:

•  1,564 boe/d production with oil and natural gas liquids weighting of 18% (May 2011 net production)
•  Oil production is primarily from the Detrital, Mannville, and Elerslie formations
•  Gas production is from the Colorado and Mannville Groups, the Belly River, Second White Specks, and Viking formations
•  Over 332,000 gross acres with an average WI of 55%
•  2P reserves 4,473 Mboe (NPV 10% $58,848M)
•  ~40% 2P NPV from oil and liquids
•  Infill and waterflood potential in the Berry Upper Mannville Oil Unit and the Coyote Ellerslie Oil Pool
•  New drill and recompletion candidates exist throughout
•  High working interest Company-owned facilities throughout (average WI 74%)

Disclaimer

The sale process will be managed in accordance with procedures that will be established and communicated to Interested Parties from time to time. The Company and RBC expressly reserve the right at any time, with or without providing notice or reasons, to: (i) amend or terminate the sale process; (ii) decline to permit any Interested Party to participate in the sale process; (iii) terminate discussions with any or all Interested Parties; (iv) reject any or all offers; (v) accept an offer other than the highest cash offer; (vi) negotiate with one or more Interested Parties with respect to a transaction; (vii) pursue other value maximizing alternatives; or (viii) limit access at any time to any additional information; all without any liability to the Company or RBC. In addition, the Company and RBC reserve the right to amend any information, which has been made available to Interested Parties either by way of addition, deletion or amendment.

 

 

RBC Rundle Contact: 

Mark McMurray
Managing Director
403-299-8447
mark.mcmurray@rbccm.com

 

Warren Orban
Associate
403-299-8456
warren.orban@rbccm.com

 

Richard Wickens
Managing Director
403-299-8449
richard.wickens@rbccm.com

 

 

RBC Capital Markets Contact:

 

Trevor Gardner
Managing Director
403-299-7191
trevor.gardner@rbccm.com