An intermediate E&P company wanted to diversify its portfolio and was looking at a significant entry into a major Canadian resource play.
Project Highlights
- 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
Senior Geologist
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