Asset Management

Services

• Strategic guidance
• Business strategy
• End of Life asset retirement obligation (ARO) optimization
• Acquisitions and divestitures
• Due diligence
• Regulatory applications
• Budgeting and reporting
• Financings and recapitalizations
• Market identification
• Staffing support
• Administration, legal, insurance, HSE, regulatory

Services

• Development programs
• Economic assessments
• Reservoir performance
• Downspacing, waterflood, completion techniques
• Capital cost reductions

Services

• Production optimization, maintenance, and reporting
• Operating cost audits and assessment of potential reductions
• Operational due diligence:
  • Evaluate all components of the operation associated with acquisition or divestitures
  • Site assessments to evaluate day-to-day operational and safety risks and the ability to deliver on marketing, transport, and other critical issues
  • Asset integrity reviews including benchmarking performance, operations, and maintenance, and confirming compliance with industry standards
  • Assess future decommissioning obligations, costs and risk
• Recompletions, workovers, drilling, completions, facilities, abandonments, remediation and reclamation
• Regular maintenance and cost control

Develop and maintain emergency response plans. Sproule has a comprehensive safety program and all activities are conducted with safety and protecting the environment as the highest priorities.

Our strengths include:

• Liability Management Rating (LMR) Advisory including discretionary waiver requests
• Adherence to regulatory requirements

As a standard practice, we adopt a four-step process for managing liabilities in Western Canada.

Licensee Liability Rating Checkup

• Forecast your Liability Management Ratio (“LMR”) and deposit requirements forward two years based on public information
• Detailed LLR Assessment
• Forecast your LMR and deposit requirements forward two years based on your company’s development and acquisition plans

Design Liability Management Program

• Review site-specific assessments, AER classifications
• Review suspended wells and area activities to determine recompletion, sale and abandonment candidates
• Design a liability management program to manage LMR

Implement Liability Management Program

• Manage abandonment programs and downhole abandonment
• Support surface reclamation, phase 1 and phase 2 assessments

Our skill sets include:

• Prospect evaluations
• Development programs
• Reservoir modelling
• Waterflood applications and enhancement
• Continuations
• Disposal applications

We have the expertise to provide our clients:

• Advice on all aspects of land management strategy
• Land administration & electronic record maintenance
• Negotiation and drafting of all land related agreements including farmouts, poolings, royalty, A&D, third party surface, and joint venture agreements
• Freehold leasing & interpretation, title review and curative work
• Manage correspondence to partners, regulatory bodies and government agencies
• Full cycle asset rationalization including evaluation, offer to purchase, due diligence, conveyance document preparation, purchase & sale agreement, and post-close records set up
• Land project management for corporate mergers, A&D, corporate restructuring and insolvencies

Production Accounting

Oil and gas companies must be constantly vigilant about maintaining the complex obligations they have on land-related assets, such as royalty management, mineral rights, and their respective lease agreements, while simultaneously ensuring regulatory compliance. The risk of failing to do so can severely damage a company’s reputation and bottom line. At Sproule, we provide an integrated blend of production accounting services; combining accounting, regulatory, data analysis, and reporting of revenues and royalties to enable clients to maintain accurate and timely production accounting records for their company. Our CAPPA certified experts have on average >15 years’ experience, including in-depth knowledge of gas plant allocation.

Our production accountants receive information from the field, land administrators, joint venture analysts, marketing and financial departments to perform monthly production accounting. The team works with volumes of oil, gas, and water produced from the wells, inventory at facilities and distribution from the facility including revenue, the division of ownership and royalties. Using their extensive experience, our accountants accurately report and identify potential measurement or allocation issues that may impact the revenue of our clients, government agencies or joint venture partners. On receivership projects, our team members quickly adapt and find creative strategies for procuring data where history may not be available or apparent.

Services

• Royalty reconciliation; reconcile royalties paid with royalties expected
• Royalty management; the team is knowledgeable and up to date on the regulatory requirements for all the provinces in terms of royalties for crown and freehold
• Accurate volume reporting to the governmental agencies across Western Canada
• Updates to land and well schedules with new wells and statuses
• Quality control: ensure information and subsequently revenue accuracy from the wellhead to plant sales gate to mitigate lost revenue or overpayment. Our team has the experience and ability to rapidly discover any errors and identify the source to correct it
• Reporting and statistics
• Annual gas cost allowance filing
• Equalizations and throughput calculations

Outsourcing the financial accounting function can be done in whole or in part and is carried out with precisely the right combination of human resources and technology to serve you most effectively.

From full cycle oil & gas accounting, including monthly management reporting to quarterly and annual financial statements to tax planning and compliance, our seasoned team of professional accountants provide dependable, accurate and timely expertise to help you manage your company.

Services

• Cash management
  • Cash flow forecasting
  • Bank deposits, and accounts receivable analysis and collection
  • Payment processes, including accounts payable input, cheque preparation
  • Bank reconciliations
  • Receivership accounting
• Payroll management
• Joint venture accounting and audit
• Master file maintenance
  • Accounting system conversions
  • Set up of new entities on oil & gas software
  • Master file maintenance for cost centers, divisions of interest, Authorization for Expenditures (AFEs)
• Capital budget reporting and analysis
• Financial reporting and month end processes
  • Financial statements and notes using either IFRS or ASPE
  • Manage the audit process with external auditors and government
  • Manage the internal audit process
  • Tax planning
  • Acquisition and divestiture accounting
  • Management and analysis preparation