In Market


MARQUEE ENERGY LTD.


PROPOSALS DUE: Will be available in the confidential information






2018 STRATEGIC ALTERNATIVES PROCESS

Marquee Energy Ltd. (“Marquee” or the “Company”) has initiated a process to evaluate strategic alternatives to enhance shareholder value and has retained GMP Securities L.P. (“GMP FirstEnergy”) as its exclusive financial advisor. Marquee owns and operates a high working interest, contiguous land position in the Michichi area of southeastern Alberta, which contains significant development potential in the Banff Formation. Corporate production averaged 2,875 BOE/d (49% light oil and NGLs, 32o API) in the fourth quarter of 2017. The Company has successfully drilled 48 horizontal wells in the Banff Karst Fairway, proving up a large, highly economic, development-ready light oil drilling inventory. The Company’s 2017 and early 2018 drilling campaign has focused on further cost and completion enhancements, increasing well productivity and enhancing well economics.

  • Proven, large, development ready light oil resource with average OOIP of 8 to 12 MMbbl per section in the Banff.
  • Extensive inventory of 281 net low risk horizontal locations identified; only 37% booked by Sproule (61 PUD, 44 Probable).
    • Contiguous land base allowing for extended reach horizontal development, further reducing costs and enhancing economics.
  • 28 Banff development horizontal wells drilled since Q1 2014 with recent optimizations in drilling and completion design.
    • Evolution to monobores and higher fracture density, demonstrating successful and repeatable well results.
  • Q3 2017 two development well program utilizing monobores and 65 m stage spacing; IP30’s averaging 235 BOE/d (66% oil).
  • Q1 2018 five development well program being completed utilizing monobores and 50 m stage spacing (28 stages per well).
    • First well IP30 rate of 203 BOE/d (81% oil/NGLs) and early production results expected in late April on remaining four wells.
  • 30% increase to Sproule Banff type well at 2017 year-end over 2016, increasing P+P reserves to 200 from 154 MBOE (65% oil/NGLs).
    • Sproule 2017 year-end Banff type well supported by established and repeatable well results since 2014.
    • Generates robust economics with an 80% IRR and a 1.2 year payout based on capital costs of $2.0 million.

Marquee Intro Map

 

DESCRIPTION OF THE PROCESS

Marquee has initiated a process to review strategic alternatives with a view to maximizing value for its shareholders. This may include, among other alternatives, a merger, the sale of the Company or a portion of the Company’s assets, or other such options as may be determined by the Company.

A detailed marketing presentation and Confidentiality Agreement (“CA”) will be made available on GMP FirstEnergy’s website or can be obtained by contacting GMP FirstEnergy directly. Parties who execute a CA will have access to the confidential information available in an online data room which will open the week of March 12, 2018. Technical presentations with Marquee’s management team will be available starting the week of April 2, 2018. Please direct all correspondence and inquiries to GMP FirstEnergy:

 

John Chambers
Vice Chairman, President
+1.403.262.0664
jschambers@gmpfirstenergy.com
Mark Pearson, P.Eng.
Director, Acquisitions & Divestitures
+1.403.444.8284
mcpearson@gmpfirstenergy.com
Dejan Kukic (CA Contact)
Vice President, Investment Banking
+1.403.262-.0612
dkukic@gmpfirstenergy.com 
Omid Eslami, P.Eng.
Associate, Acquisitions & Divestitures
+1.403.262.0613
oeslami@gmpfirstenergy.com 
Kory Cross
Associate, Investment Banking
+1.403.262.0634
krcross@gmpfirstenergy.com
David Lin (Data Room Contact)
Analyst, Acquisitions & Divestitures
+1.403.262.0660
dlin@gmpfirstenergy.com