Corporate Divestiture: Edge Capital Ltd. – Lloydminster, AB & SK

Edge Capital Ltd. together with its wholly owned subsidiaries; Edge LRM Operations Ltd. and Edge Crypto Mining Inc. (collectively “Edge” or the “Firm”) has engaged Sayer Power Advisors to help it with a sale of the shares of the Firm.

Edge is a debt free, junior oil and pure fuel firm with a give attention to heavy oil operated belongings within the Lloydminster space of Alberta and Saskatchewan.

In Saskatchewan, the Firm’s operations are targeted within the Huge Gully, Dee Valley, Edam, Epping, Forest Financial institution, Golden Lake, Lashburn, Rush Lake, Silverdale, Normal Hill, Tangleflags and Hillmond areas. Edge’s operated properties in Alberta are positioned within the Baxter Lake and Lloydminster areas. The Firm additionally has numerous non-operated pursuits all through Alberta and British Columbia (the “Properties”).

The Firm’s common day by day manufacturing within the second quarter of 2022 consisted of roughly 260 barrels of oil and pure fuel liquids per day and 306 Mcf/d of pure fuel (311 boe/d).

Working revenue web to Edge from the Properties within the second quarter of 2022 was roughly $1.3 million, or $5.2 million on an annualized foundation.

As at August 31, 2022, Edge had no financial institution debt, estimated whole optimistic working capital of $4.2 million, together with $3.0 million in money, and whole tax swimming pools of roughly $6.3 million (with $5.1 million in non-capital losses).

Edge has made capital spending on abandonment and reclamation obligations (“ARO”) a key precedence since inception in February of 2020. The Firm has accomplished $1.2 million of ARO work since Could 1, 2020. Edge’s whole deemed asset worth between Alberta and Saskatchewan is a mixed $7.5 million.

As of September 3, 2022, Edge’s web deemed asset worth for its operated properties in Alberta was $1.4 million (deemed belongings of $1.7 million and deemed liabilities of $321,608), with an LMR ratio of 5.36. Since Could 2020, the Firm’s LMR ratio in Alberta has elevated from 1.70 to five.36.

As of September 28, 2022, Edge’s web deemed asset worth for its operated properties in Saskatchewan was $3.7 million (deemed belongings of $5.8 million and deemed liabilities of $2.1 million), with an LMR ratio 2.75. Since Could 2020, the Firm’s LMR ratio in Saskatchewan has elevated from 0.59 to 2.75.

Trimble Engineering Associates Ltd. (“Trimble”) ready an unbiased reserves analysis of Edge’s Properties (the “Trimble Report”). The Trimble Report is efficient August 31, 2022 utilizing Trimble’s forecast pricing as at July 1, 2022. Trimble estimated that, as of August 31, 2022, the Properties contained remaining proved plus possible reserves of 1.0 million barrels of oil and pure fuel liquids and 559 MMcf of pure fuel (1.1 million boe), with an estimated web current worth of $15.6 million utilizing forecast pricing at a ten% low cost.

Edge Crypto Mining Inc. was shaped to each monetize extra pure fuel produced by Edge’s heavy oil wells within the Lloydminster space and as a methane discount technique as a part of the Firm’s dedication to environmental stewardship. Edge has a Bitcoin setup on the 12-26-050-1W4 properly website. The Firm is planning so as to add a second operation on the 14-26-050-1W4 properly website within the fourth quarter of 2022.

Abstract info regarding this divestiture is connected to this correspondence. Extra particular info is obtainable at www.sayeradvisors.com. A bundle of extra detailed confidential info will likely be despatched to any occasion executing a Confidentiality Settlement (copy connected).

Proposals regarding this course of will likely be accepted till 12:00 pm on Thursday, November 10, 2022.

For additional info please be happy to contact: Ben Rye, Grazina Palmer, or myself at 403.266.6133.