ARO Cost Model

As the industry leader in A&D and liability analysis software, we are excited to introduce the latest tool to compliment our powerful LLR Analysis Module: AssetBook’s ARO Cost Model.
The ARO Cost Model was developed to estimate actual retirements costs of wells and facilities in the WCSB. Its intent is to give an estimated summary of costs associated with the abandonment and reclamation for groups of assets and portfolios. Ideal for anyone involved in M&A, A&D, business development or liability management.

Why ARO?

Estimating retirement obligation liability for an asset package or an entire company is a crucial, yet difficult to grasp aspect of scoping for A&D deals. LLR ratios and government calculated liabilities only tell half the story.  ARO is a key aspect of risk management and a disciplined retirement strategy is essential for corporate financial planning. 

Learn More About ARO

The ARO model was developed through a culmination of government resources, expert opinion and industry data. The baseline values were derived from government agency data and this was augmented by professional experience when warranted. The values have been benchmarked against multiple sets of operator records and will continue to be as more and more information becomes available. Professionals that contributed to the model include:

  • Abandonment coordinators

  • Facility engineers

  • Civil engineers

  • Professional agrologists

  • Reclamation managers

  • Professional biologists

  • Chemical engineers

  • Drilling engineers

  • HSE managers

  • Accounting auditors

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