Polymer Flooding Expertise Brings Accuracy, Confidence to Acquisition Decision
To support an acquisition decision, an E&P company sought a third-party economic and technical due diligence on large offshore oil assets. With limited access to data, the company required expertise in polymer flooding recovery practices from their advisors.
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Project Highlights
- Due diligence on offshore assets
- Client required a third-party audit to support reserves-based lending
- Required deep expertise in polymer flooding recovery practices
- Nearly 1 billion barrels of oil in place and a potential recovery factor of up to 50 % in key areas
Challenges:
The company had limited time to audit the assets. In addition, there was limited data to review and limited opportunity to ask the seller further questions
The audit required deep expertise in polymer flooding recovery practices
The audit required deep expertise in polymer flooding recovery practices
Solutions:
The operator tapped Sproule ERCE specifically for its expertise in determining how polymer flooding could impact recovery
Sproule ERCE experts went onsite at one of the operator’s European offices to work side-by-side with their in-house team
Sproule ERCE weighed the technical data including the auditing of the simulation model and economic parameters to determine the accuracy of the seller’s data and estimate reserves and corresponding recovery
Sproule ERCE’s estimates provided a more conservative counterpoint to the seller’s asset profile
Sproule ERCE experts went onsite at one of the operator’s European offices to work side-by-side with their in-house team
Sproule ERCE weighed the technical data including the auditing of the simulation model and economic parameters to determine the accuracy of the seller’s data and estimate reserves and corresponding recovery
Sproule ERCE’s estimates provided a more conservative counterpoint to the seller’s asset profile
Values:
The resulting reserves report gave the client more detailed information on which to make its decision and a third-party assessment to support reserves-based lending
Decision-makers gained greater confidence in their decision in a short timeframe
Decision-makers gained greater confidence in their decision in a short timeframe