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Our Expertise

Strategic Advisory

In the age of complex reservoir development and historic capital efficiency, traditional rules no longer apply. Companies need solutions geared towards maximizing economic value, optimizing recovery, and managing operational and financial risk.

Sproule’s independent experts have the know-how to help you navigate today’s complex energy value chain. From advising organizations on mergers and acquisitions, technical due diligence, fair market valuations, and investment potential, Sproule has built a strong and consistent record of helping you identify upside and potential risks. We combine in-depth reservoir analysis with a detailed understanding of the oil and gas value chain to assist clients with optimizing assets to maximize profits and limit liabilities.

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Featured Case Study

Transformative Acquisition Enables New Market Entry

A major investment firm required in-depth technical expertise to manage risk and secure an offshore investment opportunity, diversifying their portfolio and providing access to a new market.

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60+ advisory engagements per year
28+ countries served
65+ commercial and technical experts
 

M&A Advisory

Sproule can assist both as a buyside or sellside technical and commercial advisor, helping you through the process of understanding the inherent value and potential of an asset, while at the same time offering support from origination to the execution of a transaction.

Our team can support the entire M&A process for energy assets starting with the screening process and benchmarking of opportunities. If a particular asset is identified, we can evaluate and model technical and commercial drivers, establish value parameters, review field development concepts, opine on pricing scenarios, run sensitivity analyzes and develop negotiation strategies.

 

Technical and Commercial Due Diligence

Whether you are investing, acquiring, divesting or providing project finance, Sproule provides expert due diligence support. Let us help you increase value, identify and reduce risk and optimize transaction costs.

Our experts can attend a data room, prepare customized reports, and provide full documentation for all phases of evaluating an investment, acquisition or divestment. We also opine on operation, facilities, infrastructure development and maintenance, markets, and asset values.

Our consultants include experts such as:

  • Geoscientists including geologists, petrophysicists, geophysicists, geomodellers
  • Reservoir engineers
  • Production engineers
  • Facility and infrastructure operations engineers
  • Land and contract professionals
  • Petroleum economists
  • Finance professionals

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Supply Studies

Oil and gas facilities and pipelines usually have a life spanning several decades. Determining their economic viability requires a good understanding of the petroleum and natural gas supplies. Sproule prepares petroleum and natural gas supply studies to support infrastructure projects, including pipeline and facilities construction or optimization.

We undertake basin-wide resource studies, as well as appraisals for a proposed facility or pipeline connection area. Sproule estimates the potential for hydrocarbon recovery and delivers production forecasts for existing and planned drilling and development programs in the relevant region.

Assessing oil and gas development opportunities tied to specific price forecasts and industry conditions considers the competitiveness of the resource within the basin and other development opportunities that companies may have.

 

Fair Market Valuation

Sproule provides fair market value estimates of hydrocarbon assets. Our experts have deep and wide-ranging experience with some of the world’s most complex regions – from mature basins and brownfields to undeveloped blocks and frontier basins. Sproule’s technical evaluations of oil and gas properties’ potential deliver key insights to clarify market values.

Our reports use best valuation practices, and our valuation experts deploy a range of methodologies appropriate for particular assets, including discounted cash flow analysis, precedent transactions, public trading multiples, net asset value analysis, and other methods as appropriate.

  • Mergers and acquisitions
  • Equity or debt financing
  • Project finance
  • Oil and gas royalty interests
  • Public company reporting
  • Tax planning and reporting
  • Eminent domain

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Unitization and Redetermination

Sproule’s expert team provides global unitization and equity redetermination services. We have a proven history of collaborating with clients to resolve uncertainty over ownership of petroleum assets. Unitization and equity redetermination are wide-ranging and may hold significant value for stakeholders. Sproule assigns its most senior and experienced consultants to this demanding work.

 

Expert Witness

Sproule’s broad and deep knowledge of oil and gas issues means we are often asked to provide expert witness testimony and opinions. Our most experienced staff support clients in judicial, regulatory, arbitration, and mediation proceedings globally. Sproule experts have testified in a wide range of petroleum-related legal and regulatory cases, including

  • Regulatory hearings for development, facility, pipeline, and export applications
  • Litigation and judicial proceedings for contract disputes, taxes, bankruptcy, production sharing agreements, and other issues
  • Mediation and arbitration
  • Competitive drainage

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We Can Help You Capture Value

Oil and gas operations are complex, expensive and the technologically keeps changing. They require large investments in complex geological, commercial and political environments. Stakeholders face significant technical and financial risks, which necessitates a deep understanding of the interrelationship between assets and markets across an increasingly integrated value chain. Sproule’s advisory services give stakeholders a better understanding of value drivers, upside potential, risks, and mitigation strategies.

Best Practices Customized for You

Our advisory services depend on many factors – including your asset’s quality, geography, and geology. Sproule will always customize our analysis to fit your objectives. Our experts help translate technical insights into commercial drivers and decisions.

Best Practices Customized for You

Our advisory services depend on many factors – including your asset’s quality, geography, and geology. Sproule will always customize our analysis to fit your objectives. Our experts help translate technical insights into commercial drivers and decisions.

Technical analysis may include:

  • Analyze geological and engineering data
  • Evaluate well logs and core data
  • Evaluate seismic surveys
  • Investigate production data, well tests, pressure data, and temperature and fluid data
  • Forecast future production rates consistent with performance to date and offset operations
  • Estimate reserves, resources, and recovery factor
  • Identify additional potential upside
  • Evaluate planned workover, drilling, and enhanced recovery projects based on analogous operations and recent program results
  • Conduct structural interpretation of the horizons
  • Conduct volumetric determination of initial hydrocarbons-in-place in reservoirs where performance data is inadequate for reserve estimation

A commercial analysis may include:

  • Review the plausibility of integrated projects, including capital costs, operating costs, regulatory considerations, schedule delay risk, and overall project viability
  • Develop a framework for considering strategic options for an asset based on market drivers
  • Conduct a fair market value analysis of assets
  • Provide or audit a returns analysis and integrated financial modelling of an asset across the value chain, including integration of upstream and downstream economics for integrated projects, such as pipelines, processing facilities or LNG terminals
  • Offer an integrated analysis of supply and demand for commodities, including an analysis of market drivers regionally or globally
  • Develop commodity price forecast scenarios for key benchmarks based on proprietary models and scenario analysis
  • Support the negotiation process for buyside and sell-side mandates
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Christoffer Mylde, M.Sc.
Senior Vice President

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