A bold strategy to build a better economic business model for successfully dealing with conventional end-of-life assets
Project Highlights
- 6,000 boepd of production
- Responsible mature asset management
- AER regulation compliance
- Implemented end-of-life asset management
Challenge
- The client needed to manage an end of life asset in a cost efficient manner and pursuant to AER regulations
- An economic business model for conventional end of life assets was needed
- The correct mix of assets needed to be identified and a cost effective team was needed to manage the assets
- A realistic model focused on life cycle management and utilization of unique risk mitigation strategies was also needed
Solution
- Sproule helped evaluate the acquisition, structure the offer, negotiate the purchase and sale, complete due diligence, secure appropriate licenses, and advise on unique aspects of the transaction
- Sproule also managed the transition of the assets from the vendor to our client, putting all the required processes and systems in place
- Sproule built the Discretion Waiver Request and supporting documentation, represented and presented to the regulator (AER) on behalf of the client.
- Sproule provided a cost effective, fit for purpose advisory, administrative and operational team for all aspects of the client’s oil and gas business
Value
- The client now produces 6,000 boepd and derives economic returns by maximizing the cash flow from the assets
- Client received the required approvals from stakeholders to close the transaction
Senior Vice President, Asset Management
Vice President, Asset Management Operations
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