Shiningstar Energy Ltd. - Asset Sale - 175 BOE/D
Shiningstar Energy Ltd., (Shiningstar) has engaged NRG Divestitures to market its non-core Alberta oil and gas assets.
This package is currently producing 175 boe/d of oil and gas and all wells have a positive LLR rating.
The Chip Lake property is currently producing Rock Creek oil, liquids, and gas at a rate of 75 boe/d net to Shiningstar (550 boe/d gross). Shiningstar has identified 4-5 more horizontal Rock Creek drilling locations on the lands. The most recent Rock Creek horizontal well in the pool came on production at a rate of 850 boe/d.
The 100% working interest, operated Pigeon Lake property is producing Cardium light oil and gas at a steady 45 boe/d. A portion of the gas production is used to generate electricity on site, which is then sold into the grid contributing $4-8+k per month in revenue. Shiningstar has also identified Cardium horizontal locations on its lands.
The Royce & Mulligan property has an average of 90% working interest, and is producing Charlie Lake oil and Halfway gas and oil at 44 boe/d, with potential to further exploit both zones. New Charlie Lake oil wells in the immediate area are coming on at 100-200 bbls/d of oil, and 1.0-2.0 mmcf/d of gas. Shiningstar has identified 33 3D seismically delineated Charlie Lake locations, and an additional Halfway oil location.
The Blueridge property is producing 23 boe/d of Pekisko and Nordegg gas and liquids. Shiningstar has identified upside in several zones including the Viking, Notikewin, Lower Mannville, Rock Creek, Nordegg, and Pekisko zones. There is plentiful infrastructure in the area to support future growth.
The package also includes smaller producing and non-producing properties, all carrying potential for further development.
This is an excellent package for a company looking to add stable cash flow, production, and significant development potential to its asset base.