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Our
Perspective When we shop, we like to see the products that we are interested in presented in a pleasant way. We feel better about the product displayed if its advantages are brought out in clear and simple terms. It is easier to convince us to buy the item if we clearly understand how the article will help to improve our lives. Even if the product was the greatest thing since the proverbial sliced bread, we would be very hesitant to pay our hard earned money for an item when its benefits are obscured or unclear. We see the same concepts at play in the acquisition and divestment markets of our industry. Many good assets available on the market have a tough time selling because the value is not clear or not presented in the best possible way. We feel it is time to focus on what we call "value presentation". This link will take you to the article. Looking forward to hearing from you,
Value Presentation To maximize the price received for oil and gas properties, the seller must show the value of the properties to potential buyers. While that may seem like a "no brainer", recent experience indicates that many sellers still have not gotten the point. We have visited many datarooms, both physical and electronic, that are poorly constructed and fail to efficiently provide the evaluation data a buyer needs. It is astounding how a seller may take our team into a room full of well files, and say, "Here it is." That is not a dataroom. That is lost revenue for the seller. In some cases, millions of dollars. For most packages of producing properties, the bulk of the purchase price will be paid for proved producing reserves. People buy because of the upside, but they pay for the proved. A good dataroom clearly shows the current production and provides the data to allow the buyer to determine the value. That means production and test histories, logs, cores, directional surveys, structure and other geologic maps, bottomhole pressure reports and whatever else might be needed to estimate the reserves associated with the particular property. Operating data are just as important. How are the wells produced? What operating systems are in the field and under what pressure regimes do they currently operate? Don't forget the financial data. Provide historical expense data. What are the marketing terms? What are the historical product price differentials? Showcasing the upside is mandatory. Are there behind pipe zones? Identify them and give the data needed to quantify them. Close-in drilling locations? Show them and how they relate to existing production. Prospects? Tout them. Help the buyer get comfortable with the reserve potential and risks. In every case, provide the geologic, geophysical, and engineering data needed to evaluate them. Rational buyers must think "no data, no value." Additional wells or behind pipe zones may not be the only upside. What improvements can be made quickly and easily? Are there reasons that the buyer should expect expenses to go down? Can back pressures be reduced or compression added? Are there secondary recovery opportunities? Shout them out! A well-documented third-party reserve report is almost always helpful. With one, potential buyers can quickly determine their level of interest in the package. We have seen several cases where the buyer would not even look at a package without a third-party report. But remember, even the most thoroughly populated dataroom is not worth much if the data is so poorly organized that the potential buyers can't quickly and easily find what they need. A logical, user-friendly dataroom is one of the best ways to increase the bid price on your divestment package.
The following Biographies are just a small sampling of the kind of talent available in our talent pool of over 9,000 experts. Please call our placement managers if you are interested in learning more about these professionals. Or check out our website for more candidates. Reservoir Engineer with a Bachelor's Degree and 22 years of experience in the oil and gas industry. Experienced in working on multidiscipline project teams for field studies including enhanced recovery, field development, and exploration. Familiar with reserve evaluation for exploration, development, workovers, acquisitions, and enhanced recovery projects. Geographic areas worked include the Gulf of Mexico, Arkansas, Louisiana, Texas, the Rocky Mountains, California, Canada, and Argentina. Computer skills include OGRE, Prophet, SAPHIR, Boss, WordPerfect, ARIES, PI/Dwight's, and Petroleum Information. Ask for R40. Production Engineer with more than eight years of experience working for a major oil and gas company. Highly experienced in workover operations and completions, including gravel packing, coiled tubing, gas-lift systems, and equipment selection. Highly skilled in facility operations including design of gathering systems, pipeline/flowline sizing, and gas dehydration. Experienced in project engineering and project management. Geographic areas worked include the Louisiana Gulf coast. Computer skills include OilWat, GasWat, Workbench, Gruy, Primavera Project Management, ProPipe, ProFlow, ProIso, PipePhase, AutoCAD, Production Analyst, PI/Dwight's, ARIES, and Microsoft Office. Ask for P86.
Applications Developer with 30 years of experience in helping companies consolidate their computer applications into an integrated package. Has worked for major and independent oil companies developing customized integrated "toolboxes" of proprietary and commercial software that will accelerate your project turnaround time. Expert in Visual Basic, Oracle, GIS, MS ADO and DAO and numerous other computer applications. Ask for DB371. Development
Geologist with 16 years of experience working the Permian
Basin, offshore Gulf of Mexico and the Rockies. He is an expert
in geologic modeling, having published numerous articles on the
subject over the last few years. His geologic modeling services
have helped majors and independents maximize their reserve recovery
while minimizing their cost of development. He has expertise in
Landmark, Petrel, RC2 and Geographix. Ask
for G837.
Manned Trip to Mars and Manning the Mars TLP? Two
questions that we hear being asked a lot:
Let's take a look for a moment at the aerospace industry. A manned trip to Mars is a noble scientific and human endeavor. We tell our children, grandchildren, and others that working within the space industry is a career where one can make a difference. Space technology has changed the world and will continue to do so. Take, for example, laser angioplasty, which has dramatically improved how medicine treats blocked coronary arteries, which employs a laser system first used at NASA's Jet Propulsion Laboratory for remote sensing of the ozone layer. Scratch-resistant glasses, cordless tools, and even those cushions in the heels of our jogging shoes are all technologies developed at NASA. However, with all its successes, the space industry has always been subject to cyclical layoffs due to lost contracts, changes in government support, company mergers, and reduced profitability. We have never questioned whether there will be enough talent available to the aerospace industry, and quite frankly, there is no question that mission control will be in Houston. Back to our industry. Are we doing what we can to replenish the future talent pool? What are we telling our children, grandchildren, and others about working in the energy industry? Manning the Mars TLP in the Gulf is also a noble scientific and human endeavor. Delivering sufficient, cost-effective, and environmentally friendly energy during the twenty-first century will both positively influence one of mankind's biggest problems and fill the individual's need for easily accessible energy. Our industry's technology has also changed the world for the better and will continue to do so. But, just like all the others, we have also been subject to cyclical layoffs due to lost contracts, changes in government support, company mergers, and reduced profitability. Our observations show energy employees in the US, including Houston, are discouraging young adults to enter the industry; however, the shortage of talent occurs domestically and not world wide. There are clear indications that elsewhere in the world parents are telling their children about the Mars TLP and the "cool" technology it took to accomplish that mission. At year end 2003, total membership of the Society of Petroleum Engineers surpassed 60,000 for the first time. The increase is nearly all in student membership from outside the U.S., which has doubled in the last two years to nearly 12,000. The influx of student members from outside the U.S. also raised non-U.S. membership totals above U.S. membership figures for the first time. Most importantly, it seems that the debate on how our industry is aging and struggling to recruit young scientists is not about whether there are enough bright young scientists for the future of the industry; but whether or not the U.S., and Houston specifically, will remain a leader in mission control for both the space and energy industries. The numbers seem to indicate that the demographics in our industry are almost certain to change with the next working generation. It remains to be seen if Houston has or does not have a problem.
Connecting
the Industry's Experts...
The Collarini Associates petroleum engineers and geoscientists specialize in evaluating oil and gas reservoirs. Specific projects include integrated field studies, acquisition evaluations, independent reserve appraisals, and exploration and exploitation prospect generation and assessment. Our full divestment services include creation and hosting of electronic and physical data rooms in addition to the technical evaluation. Our teams in Houston and New Orleans are very experienced and stand ready to help you on projects of any size. Try us!
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