Asset Acquisitions – International
SCA evaluated a large, stranded gas development project for potential acquisition by a company based outside the US. The project involved evaluation of a large volume of seismic, well, facilities, commercial and economic data, plus in-depth interaction with the seller’s technical team (also non-US based). The evaluation team included the following manager/experts: project manager, geologist, geophysicist, reservoir engineer, facilities engineer, and petrophysicist. We advised our client not to pursue the asset due to technical concerns and untenable contract obligations, which ultimately sold to another buyer for $967 million.
Asset Evaluation for Landowner
An SCA expert evaluated a large, privately-owned acreage position in South Texas to advise the client as to the oil and gas potential of the property, and to recommend a strategy for further exploration and development. The SCA consultant re-interpreted previous mapping, integrating all available seismic and well data. The potential value of new seismic data acquisition was assessed. Offsetting production and new or expanding nearby trends were evaluated for their potential to “walk” onto the client’s acreage. A recommendation was made to offset existing (depleted) production and acquire modern seismic data to evaluate a deeper exploratory lead.
An SCA engineering specialist analyzed the operations of a producing field in Southeast Asia on behalf of a major international oil company for a litigation involving proper engineering practices related to facilities utilization. The SCA expert demonstrated that the engineering practices utilized met industry standards. The suit was settled out of court, in part due to the contribution of the SCA expert.
Exploration Joint Venture Partnership
On behalf of a large international oil and gas company, SCA successfully found two joint venture partnerships to enter into the U.S. Gulf of Mexico Deepwater. From a number of initial potential partners, SCA narrowed the field to two joint venture partners that owned deepwater leases, provided technical and economic evaluations on the major lease holdings and evaluated the data in multiple data rooms. Through our evaluation and assistance, the client acquired a large deepwater lease position for approximately $800 million with two major Gulf of Mexico players.
Exploration License Evaluation
A New York City based investment group asked SCA to evaluate a detailed geotechnical report on the resource potential of a large exploration license position in the South Pacific region. The original report was conducted on behalf of the operator/owner of the acreage by another consulting firm located in the region. SCA geoscience experts provided an impartial and candid assessment of the technical and commercial risks involved. Recommendations were made regarding the implementation of a multi-year exploration program.
Exploration Prospect Evaluation
An SCA geoscience interpretation expert was asked to advise a client as to why a prospect had not been farmed-out after multiple viewings. The SCA consultant was given the standard farmout presentation and allowed to examine the data in the same timeframe and format as the other companies evaluating the prospect. The critical flaw was identified.
Marcellus Shale Project
SCA located a 10% non-operated interest in a 30,000 acre Marcellus Shale project with extremely favorable characteristics: HBP, attractive market situation, knowledgeable staff, sophisticated technology. 400+ total wells could result in resource of 2+ TCF of gas. Investment = $56 MM over first ten years.
Mature Producing Asset Acquisition
An SCA expert team including a geologist, geophysicist and reservoir engineer represented a client in the evaluation of a large sale of mature, US-based assets. The SCA team evaluated information provided by the seller in actual and virtual data rooms, plus publicly available information. High/low bid ranges and no-bid recommendations were made for each asset offered. The client was ultimately successful in negotiated high bids on several assets, while declining to meet the minimum asking price on several over-priced assets
SCA geology, geophysical and engineering experts evaluated a large volume of data to build an economic model and estimate a range of potential values for a client with ownership in an undeveloped oil field. Development had been blocked by a change in lease terms following initial discovery of hydrocarbons Litigation was undertaken by the client to recover foregone value. SCA experts provided an impartial assessment of the commercial value involved
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