Empowering investors to make informed decisions – and increase value
When a major private equity company needed parallel due diligence for two oil and gas acquisition prospects, we built an experienced, multidiscipline team to evaluate assets and uncover value.

Objective - To mitigate risk and maximise value
Our client was exploring two acquisition prospects – a mature field with multiple complex offshore facilities and material non-operated equity in a site with current production and exploration potential.
These two oil and gas acquisitions were of considerable strategic importance. Controlling risk and making informed decisions would depend on high-quality technical and operational capability, combined with a commercial focus.

Solution - A purpose-built multidiscipline team of practitioners
Given the complexity of the assets, the capital involved and the valuation variables, we provided a highly-experienced team with capabilities including asset management, operations, asset integrity, well engineering, subsurface, developments, decommissioning and commercial.
Working to a strict timeline with a first phase to be completed in under 3 weeks, we:
• Helped with acquisition target evaluation
• Ensured acquisition opportunities passed the red-flag test
• Provided detailed analysis of risks and risk mitigations
• Identified value-enhancing improvement opportunities
• Proposed operating model options that would enhance value and align interests upon acquisition

Providing opinion, observations and uncertainties
As part of our technical review, we clarified the things that our client could be certain about and the things that were less tangible and measurable. Our comprehensive technical review covered:

• Safety and environmental performance
• Operational expenditure (current and projected)
• Work program and budget
• Decommissioning liabilities
• Asset integrity and projected asset life
• Well integrity

• Well stock review (producing and locked-in potential)
• Drilling and workover costs
• Expansion and modification
• Throughput capacities, pipeline ullage, and potential for brownfield mods
• Commercial observations

Analysing value delivery
Building on our technical review, we provided informed guidance on developing value through the two new acquisitions.
Using our proven approach, we identified an opportunity for fundamental operating model change. Combined with implementing several tactical interventions, this would reduce costs and increase value. Crucially, we built our cost models on varying degrees of influence and control – supporting long-term decision making and deal construction.
We also provided options for structuring the deal in relation to decommissioning. Here, our insight into the impact of decommissioning liabilities on asset value played a key role.

Outcomes - Accurate decision-making with a view of future value
Our deliverables included commercial assurance and modelling, technical assurance, production assurance, work programme and budget assurance, OPEX and CAPEX modelling, value creation and cost optimisation, and operating model strategies.
However, the real impact of our work was in how these deliverables were widely used both internally and with investors. With our support, our client could make quality decisions with a complete perspective on current and future value.