Whether the oil price is high or low, oil and gas fields are changing hands. It is vital for the seller to establish a good divestment price. The buyer is looking for a fair acquisition cost, which leaves room to make money in the future. Cubes3 staff has extensive experience with valuation of oil and gas assets for acquisitions and divestments, including risk assessment.
Accurate asset valuation starts with a review of the production history and well performance, followed by a realistic assessment of the production forecasts and reserves associated with the producing assets. Upsides need to be identified based on further development opportunities and exploration prospects. Economic analysis is required, based on the fiscal terms and simple economic models need to be constructed to calculate the deal value, identify the upsides and cover the risks. Cubes3 risk management experience will help to quantify the key risks and opportunities associated with the asset. Cubes3 can also provide a CPR (Competent Person Report).
The creation of an attractive sales brochure, with a clear overview of the asset and the components that contribute to the asset value is the basis for the best deal.