Company Snapshot
Decimus’s management team has a proven track record of successfully managing large projects across Canada. Decimus has assembled a diversified, high-quality asset base which is comprised of operated and non-operated assets in Canada. Decimus holds several contiguous areas in Southern Alberta, Canada, spanning +26,000 gross / +16,000 net acres across the Western Canadian Sedimentary Basin. Decimus has 965,000 barrels of oil equivalent of proved plus probable reserves which is based on Year End 2024 actual production of 234 barrels of oil equivalent per day and translates to almost 27 years of P+P reserve life.
The Company’s mandate is to grow cash flow from existing assets and reserves that exhibit long-term, low decline rates through production, development and enhanced oil recovery techniques.
Southern Alberta
Alberta offers more than just opportunity; it offers momentum for resource investors alike. Canada offers vast resource potential and possesses the world's third-largest oil reserves with an estimated 171 billion barrels with the majority of those barrels residing in Alberta. About 95% of Canada's oil production (including the oil sands) and current natural gas production occurs in the Western Sedimentary Basin (WCSB).
Within the Southern Alberta region exists the Palliser Block, which has been exploited for decades, with a variety of oil and gas plays dominantly within the Cretaceous clastic reservoirs, with lesser resources in the Paleozoic deeper intervals. The region has been underexploited due to corporate philosophy of previous owners, including legacy focus on shallow gas followed by an oil sands mandate. Historical production is gas-weighted, with large scale shallow gas reservoirs exploited throughout the block. Recent drilling activity has exploited the oil potential through unconventional plays within the Mannville Group.
New Canadian infrastructure such as the Trans Mountain Expansion Project pipeline, and liquified natural gas (LNG) facilities on the West Coast, will enable Canada to reach new markets, such as China, India and other destinations in the Asia-Pacific region.
As fundamentals and market conditions are quickly changing in Canada, our business strategy is to acquire predictable producing assets whereby unlocking value through the development of previously overlooked or stranded opportunities. Through efficient management, we work to reduce operating costs to maximize operating margins, implementing sound geology and geotechnical work to identify exploration opportunities maximize returns.
Palliser Block History
In 1905, The Dominion of Canada granted a large, contiguous blocks of fee title acres (including mines and mineral rights) to CPR in consideration for completing irrigation projects to improve the habitability of lands in Saskatchewan and Alberta. One of the land blocks granted is the 1.8mm acre Palliser Block in southeast Alberta.
In 1971 CPOG merges with Central Del Rio Oils Limited to create PanCanadian Petroleum Limited (“PanCanadian”). PanCanadian becomes the largest independent producer of crude oil and natural gas in Canada.
In 2007, PanCanadian merges with the Alberta Energy Company to create Encana Corporation (“Encana”). Encana holds 10.8 million acres of fee title land which can be traced to CPR grants, Hudson’s Bay Company grants, and smaller freehold grants.
In 2009, Cenovus Energy Inc. (“Cenovus”) is spun out of Encana as an independent company. Encana splits its fee title land portfolio between Encana and Cenovus. Cenovus retains 4.8 million acres of fee title lands.
In 2015, The Ontario Teachers’ Pension Plan Board (“OTPP”) acquires Cenovus’ fee title and GORR lands for C$3.3 billion, creating Heritage Royalty.
In 2020, Heritage Royalty divests over 1.9 million acres of royalty lands throughout Alberta, Saskatchewan and Manitoba to PrairieSky Royalty.
In recent years, production across the block and surrounding production has held at ~105,000 boe/d with volumes from new oil drilling replacing declining legacy gas volumes.