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Case Studies

Canadian Gas Play Provides Portfolio Diversification Opportunity

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Canada / 2017 / Strategic Advisory

Assessed complex geology with varying thermal maturity

Included 1,200 development locations

Supported investment decision with Sproule type curve analysis

Mitigated risk with portfolio diversification

Challenge

  • The client needed to assess the viability of investing in high-value acreage with complex geology and varying thermal maturity throughout the play
  • Inconsistent public reporting of production data throughout the play made it even more difficult to assess the upside opportunity of the reservoir
  • The early stage of development meant the opportunity still required large infrastructure costs

Solution

  • Sproule experts reviewed the seller’s geologic interpretation of the play, well completion history and production history, and created a type curve for future development within each thermal maturity window
  • Technical consultants estimated improvements on economics parameters for full-scale development, which were applied to the type curves, and created cashflows for future development scenarios
  • Changing completion designs made it difficult to create type curves for future production in the region. Sproule had to rely on its extensive experience in the play and multi-variant analysis to supplement the available data

Value

  • Independent validation of range of bid price
  • Greater decision support with Sproule’s expertise, which brought broader experience than data provided by the seller