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Case Studies

Enhancing Asset Recovery through Diligent Planning

The client, a court appointed receiver for an insolvent E&P company, was tasked with the management, operation and eventual sale of assets to maximize recovery for the secured creditor. They required independent expertise to create an effective action plan to efficiently and cost effectively increase production, reduce operating costs, and package the assets for sale within the one-year receivership period.

Project Highlights

  • Maximum asset value recovery in receivership process
  • Target to increase production, reduce costs
  • Small and efficient management team
  • Successful sale for maximum return

Challenge

  • A client was the court appointed receiver for an insolvent E&P company, and was tasked with the management, operation and eventual sale of assets to maximize recovery for the secured creditor
  • An effective action plan was required to efficiently and cost effectively increase production, reduce operating costs, and package the assets for sale within the one-year receivership period

Solution

  • The Niven Fischer team was hired to create a capitally efficient budget and development plan to optimize and increase existing production, and reduce operating costs
  • We imbedded a small, focused team of experts to take over the day-to-day management of the field operations, engineering, land and accounting functions, which immediately reduced the monthly G&A costs for the client
  • Our team implemented a strategy to evaluate the company’s assets, verify the accuracy of the land and accounting records, and prepared the assets to be marketed for sale
  • Following a successful marketing effort, Niven Fischer prepared the requisite conveyance documentation, and closed the sale of the assets to an independent third party E&P company

Value

  • Niven Fischer’s successful implementation of its management plan enabled the client to show increased production revenue and reduced costs, which ultimately increased the value received for the insolvent company’s assets
  • Our small and efficient team allowed an instantaneous reduction in G&A costs for the client, further increasing the bottom-line value of the company
Brian Carnahan, P.Eng.
Senior Vice President, Asset Operations

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