M&A Technical Assessments

Transcription

1 Strategic Services M&A Technical Assessments Independent Information For Decision Makers Geological Assessments Production Assessments Economic Assessments Due Diligence Abridged Presentation for Website (Contact CDL for the Full Presentation) September 2016

2 Canadian Discovery Ltd. Advisors to the Resource Sector... Leading with Ideas! Innovative, client-driven E&P solutions since Over 300 clients worldwide, from juniors to super-majors 60 interdisciplinary staff, including over 20 technical professionals A long history of research and development Independent, third-party analysis and business-oriented solutions Three service-oriented divisions: Data, Intelligence, Expertise

3 Value Proposition How can CDL increase your ROR by a modest 5% on a $100MM investment or acquisition? Supply G&G knowledge on identified opportunities from broad regional picture to detailed in-depth analysis Reduce risk and assess upside on targeted assets using deep G&G expertise and area knowledge Benchmark drilling and completions practices for area of interest using best-in-class big data What s the cost? Probably less than 0.5%, ROR on the incremental capital 1,000%

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5 Leaders in M&A Technical Evaluations Mark Lenko, P.Eng. Engineering Director Over 25 years of industry experience Focus on evaluations, exploitation and reservoir engineering B.Sc. (Petroleum Engineering) University of Alberta M.A. (Economics) University of Calgary Neil Watson, P.Geol. Geology Director Over 30 years of industry experience Focus on exploration and development geology 5-year Principal at Canadian Discovery B.Sc. (Geology) University of Alberta

6 M&A Technical Assessments Core Offerings CDL has experience assisting financial firms, A&D and investment houses, current operators and international energy players. Geological Assessments Reservoir characterization Play validity Vetting of drilling locations Production Assessments Type curve verification By-product yields Economic Assessments Cost assumption verification Processing and take-away capacity Due Diligence To truth inputs for major decisions Presentation and report

7 Process 1. Engagement Agreement Outlines: Scope of Work Deliverables Timelines Confidentiality provisions Budget 2. Deliverables Presentation of findings Report of findings TYPICAL SCOPE OF WORK Geological assessment Reservoir characterization Type curve development/ comparison By-product estimates Cost comparisons Resource assessment

8 Value of Independent Assessment by CDL Technical assessment is based on the geological and engineering merits. Able to deliver high level technical assessment on tight timelines Ability to draw on the knowledge and experience of 50 technical professionals from a range of disciplines. CDL s optimal outcome: Providing high-quality technical assessment within the clients desired time frame.

9 Deliverables Overview

10 Sample Geological Assessment Hydrogeological Investigation Hydro-structural cross-section What are the implications for the play of interest?

11 Sample Geological Assessment Pressure Regime Analysis Pressure vs elevation plot Is the area of interest over-, under- or normally pressured.

12 Sample Geological Assessment Reservoir Characterization Mineralogy and petrophysical analysis. Contrast within the section of interest. Impact on the reservoir within the area of interest.

13 Sample Production Assessment Probabilistic Type Curve Development PTC`s developed using SPEE and USGS methodology Type curves can be normalized for a variety of parameters Profiles are the basis for economic evaluations Provides a basis of comparisons for opportunities

14 Regional Estimated Recovery CDL has forecast EURs for each unconventional producer Highlights areas of best expected performance

15 Sample Production Assessment Well Performance (1of 2) Comparative well performance Target company wells had median 12 month cumulative production 127% above the median for the area.

16 Sample Production Assessment Well Performance(2 of 2) Comparison of IP(90) for all area operators. Majority of target company s wells were in the top quartile

17 Sample Production Assessment By-Product Yields METHODOLOGY CDL conducted the Gas Liquids & Light Oil Study (GLLO) in 2013 GLLO examined analysis from 530,000 gas and 250,000 oil wells to map liquid trends in 24 formations across Western Canada. Controlling factors are formation temperature, facies and pressure. GLLO study data were extracted for area of interest Theoretical liquid yield was based on gas analysis and Gas Processor s Handbook calculation P50 value was used for the type curves and EURs

18 Sample Economic Assessment Cost Comparisons Operating and Capital TYPICAL METRICS Completion Types Drilling/Completion Costs Operating/Capital Costs Efficiency/Recovery Benchmarking/peer review

19 Sample Assignment Resource Assessment TYPICAL DELIVERABLES EUR (P50) Total OOIP/OGIP Estimates Condensate/Gas Ratio Expectations in the Area of Interest

20 Assignment Findings Key Findings Conclusions that the technical data have highlighted Summary of potential Potential challenges Presentation Follow-Up Quick turnaround of additional items of interest Technical Assessment Letter Written assessment of findings

21 Contact Information For inquiries with respect to this presentation, please contact: Mark Lenko, Managing Director (Interim) and Engineering Director Neil Watson, Geology Director Kaush Rakhit, President Canadian Discovery Ltd. 300, Avenue SW Calgary, AB T2P 0Z1 For general inquiries, please contact info@canadiandiscovery.com

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