Acquisition Support for Key U.S. Unconventional Assets

A large private equity firm, assessing a significant E&P acquisition of key U.S. unconventional assets, required an independent validation of the asset value in order to proceed with the opportunity.

Project Highlights

  • The firm needed technical and commercial analysis prior to a potential acquisition
  • Assets were spread throughout five major U.S. unconventional basins
  • The opportunity is valued at $7+ billion
  • The client required rapid turnaround
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Challenges:

The investor needed a more in-depth understanding of the geological and engineering aspects to be more comfortable in establishing a valuation.

For this time-sensitive opportunity, the client required a fast turnaround of the analysis in order to proceed with the deal.

Solutions:

With extensive experience in the key plays, Sproule ERCE prepared the technical evaluation and future cash flow projections of the key plays

Sproule ERCE ran all the sensitivities, and set up the database and baseline projections

The team worked directly with the deal team to better assess risks and upside based on market conditions and geologic parameters

Values:

With Sproule ERCE’s technical and commercial insights, the producer gained a much clearer view into the upside of the opportunity and was able to successfully complete the acquisition