Sawn Lake Prospectus Sawn Lake demonstration production was successful but no further optimizations have been carried for over 5 years.
During that time period there have been significant technology gains in completion techniques.
Currently, the break even price for Canadian oil sands is $48 per barre.
Regulatory approval was received on December 5, 2017 for potential commercial expansion to 3200 BOPD at the Sawn Lake, Alberta SAGD project using Andora’s proprietary Produced Water Boiler.
A September 30, 2019 Contingent Bitumen Resources Report (“Resources Report”) by Sproule Associates Limited evaluated Andora’s oil sands interests at Sawn Lake Alberta, Canada using forecast prices at September 30, 3019.
The Resources Report assigned unrisked “Best Estimate” contingent resources to Andora were 227.8 million barrels of bitumen recoverable (163.6 million barrels net to Pan Orient’s 71.8% interest in Andora) assigned to the Sawn Lake Central and the Sawn Lake South blocks of Sawn Lake, both of which are operated by Andora.
Sawn Lake was written down by $85.6 million in 2020 when oil prices collapsed.
These are the salient financial and mensuration metrics for Sawn Lake, as best that I could find in available documentation.
Management implies that a sale of Sawn Lake is in process.
At $100 oil it would be very profitable and perhaps more so given intervening technology gains.
I would place the sale price in the $25 million to $50 million range net to POE..