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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
Canadian Discovery Ltd.
Advisors to the Resource Sector. . . Leading with Ideas! Innovative, client-driven E&P solutions since 1987.
• 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
www.canadiandiscovery.com
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%
Leaders in M&ATechnical 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
M&A Technical AssessmentsCore 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
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
• 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.
Value of Independent Assessment by CDL
Deliverables
Overview
Sample Geological Assessment
Hydrogeological Investigation
• Hydro-structural cross-section
• What are the implications for the play of interest?
Sample Geological Assessment
Pressure Regime Analysis
• Pressure vs elevation plot
• Is the area of interest over-, under- or normally pressured.
Sample Geological Assessment
Reservoir Characterization
• Mineralogy and petrophysical analysis.
• Contrast within the section of interest.
• Impact on the reservoir within the area of interest.
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
Regional EstimatedRecovery
• CDL has forecast EURs for each unconventional producer
• Highlights areas of best expected performance
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.
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
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
Sample Economic Assessment
Cost Comparisons Operating and Capital
TYPICAL METRICS
• Completion Types
• Drilling/Completion Costs
• Operating/Capital Costs
• Efficiency/Recovery
• Benchmarking/peer review
Sample Assignment
Resource Assessment
TYPICAL DELIVERABLES
• EUR (P50)
• Total OOIP/OGIP Estimates
• Condensate/Gas Ratio Expectations in the Area of Interest
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
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, 706 – 7 Avenue SW Calgary, AB T2P 0Z1
For general inquiries, please contact [email protected]
403.269.3644
mailto:[email protected]:[email protected]:[email protected]
Notes
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