Avila Energy Corporation upon receiving Shareholder Approval at the AGM October 15, 2021, the Company formally filed the change of its name to Avila Energy Corporation effective December 3, 2021.
On November 24, 2021, the Company received conditional approval from the CSE for the Lifting of the Temporary Halt (the “Halt”) and the resumption trading of the Company’s shares prior to the closing of the proposed acquisition of 53,835 Acres, 43,935 Acres (Net) of mineral rights, associated wells, pipelines and facilities from 611890 Alberta Inc. Furthermore, prior to obtaining final approval from the CSE, the Alberta Securities Commission (the “ASC”) has conducted a continuous disclosure review of the CSE Listing Statement – Form 2A and the information circular for the special meeting of shareholders of the Company under section 60.2 of the Securities Act (Alberta). The ASC has closed its review on June 22, 2022, as it had no further comments to make. Avila does not make any representations, written or oral, that the ASC has in any way expressed an opinion or passed judgment on the merits of the disclosure provided by Avila.
Independent Qualified Reserves Evaluators and Auditors of Calgary, Alberta, Canada being Deloitte LLP prepared an independent evaluation of reserves and future net revenues derived therefrom, of the Petroleum and Natural Gas assets of the interests of Avila according to the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”). As required, these reserves and future net revenues were estimated using forecast prices and costs (before and after income taxes) according to the requirements of National Instrument 51-101 (“NI 51-101”). The effective date of this evaluation is December 31, 2021.
Avila upon comparing its work to the COGE Handbook and prior to engaging the Company’s QRE, reduced the number of locations to 18 from 147 which reduced its Capital Budget. The evaluation completed has incorporated a budget of $14.3 million (net) for the development of the assets in 2022 being acquired. Based on this decision the Company is pleased to report that the evaluation of the acquisition on a 10% discounted Net Present Value (NPV10%) basis was determined to be $26.7 million.
As estimated effective January 1, 2022, the value of the life of the estimated reserves for the Company are based on projected average Oil Price of CDN $65.29 per barrel, and an average price of $3.81/mcf for natural gas. The Company anticipates that upon reaching its initial goals and gaining greater visibility on future commodity prices that it will be reviewing its capital plans in the second half of 2022. Upon closing of the transaction the estimated oil and natural gas production is estimated to be 700 boe/d, 20% oil and Iiquids, 80% natural gas.
Leonard Van Betuw, President, and CEO of Avila commented, “We continue to concentrate on engaging with regulators and working towards satisfying all requirements as we work to the resumption of trading and the closing the proposed Acquisition. Avila and its contractors remain focused on the future and its long term goals.