To support an acquisition decision, an E&P company sought a third-party economic and technical due diligence on large offshore oil assets. With limited access to data, the company required expertise in polymer flooding recovery practices from their advisors.
- Due diligence on offshore assets
- Client required a third-party audit to support reserves-based lending
- Required deep expertise in polymer flooding recovery practices
- Nearly 1 billion barrels of oil in place and a potential recovery factor of up to 50 % in key areas
- The company had limited time to audit the assets. In addition, there was limited data to review and limited opportunity to ask the seller further questions
- The audit required deep expertise in polymer flooding recovery practices
- The operator tapped Sproule specifically for its expertise in determining how polymer flooding could impact recovery
- Sproule experts went onsite at one of the operator’s European offices to work side-by-side with their in-house team
- Sproule weighed the technical data including the auditing of the simulation model and economic parameters to determine the accuracy of the seller’s data and estimate reserves and corresponding recovery
- Sproule’s estimates provided a more conservative counterpoint to the seller’s asset profile
- The resulting reserves report gave the client more detailed information on which to make its decision and a third-party assessment to support reserves-based lending
- Decision-makers gained greater confidence in their decision in a short timeframe
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