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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Project Highlights
- 1.3 Tcf in place
- $1.4B investment decision
- Supported new market entry for portfolio diversification
- Delivered complex offshore analysis
Challenges:
The complex offshore reservoir was a first-of-a-kind opportunity for the investment firm to enter into a new market, providing a working interest in the project but also increasing investment risk
With only a small in-house technical team to conduct the analysis, the client needed external geoscience and engineering expertise to determine their bid range based on risk and upside potential, as this was a significant investment that would secure entry into a new market
The complex investment opportunity required a multi-disciplinary evaluation approach, relying on integrated geological, geophysical, simulation and engineering expertise
With only a small in-house technical team to conduct the analysis, the client needed external geoscience and engineering expertise to determine their bid range based on risk and upside potential, as this was a significant investment that would secure entry into a new market
The complex investment opportunity required a multi-disciplinary evaluation approach, relying on integrated geological, geophysical, simulation and engineering expertise
Solutions:
Sproule ERCE provided a multi-disciplinary team to determine the range of technical risk across the geoscience and engineering disciplines. The five senior professionals averaged more than 20 years of industry experience
A phased approach allowed the client to allocate budget to each milestone versus an all-in project – helping them understand the process better and make critical go / no-go decisions along the project lifecycle
Sproule ERCE stress-tested multiple development field scenarios to support the bid process, which required visiting the physical data room overseas as part of the project
A phased approach allowed the client to allocate budget to each milestone versus an all-in project – helping them understand the process better and make critical go / no-go decisions along the project lifecycle
Sproule ERCE stress-tested multiple development field scenarios to support the bid process, which required visiting the physical data room overseas as part of the project
Values:
The client successfully bid on the project and secured the opportunity, diversifying their portfolio
The firm’s investment decision was supported by deep expertise in geology, geophysics, simulation, geomodelling and engineering without having to build an in-house team
The firm’s investment decision was supported by deep expertise in geology, geophysics, simulation, geomodelling and engineering without having to build an in-house team