Virginia Hills Oil Corp., Calgary, has begun a strategic review to accommodate development of its Devonian Slave Point light-oil play in the Red Earth area of North-Central Alberta.
Possible options include an infusion of capital, sale of all or part of the company, merger, farm-in, or joint venture. Scotia Waterous is the sole financial advisor.
Virginia Hills has 63 net prospective sections of land in the Slave Point, tight-limestone resource play with 17.5 net sections partially developed with primary production and 4.5 net sections on secondary production.
It estimates its potential undeveloped drilling inventory at 178 net horizontal Slave Point light-oil wells.
The company said it “internally estimates that to fully develop its Red Earth assets, using both primary and secondary production techniques, within its existing capital structure would take over 30 years at current commodity-price expectations.”