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 ARO Manager.
 
The AssetBook ARO Manager is the first and only standardized tool for estimating and monitoring asset retirement obligations in Western Canada’s oil and gas sector. It is the follow-up to XI’s original ARO Cost Model that was released in early 2017 as a reliable way to quickly calculate estimated abandonment and reclamation costs early in the A&D or business development cycle.
 
The new AssetBook ARO Manager is so much more than just an ARO calculator. It can be utilized to monitor and optimize liabilities over the entire life cycle of an asset. From Land, to Business Development, to Operations, Risk Management and Finance, E&P leaders across your organization can use AssetBook ARO Manager to:
  • perform scenario analysis to see the impact of an A&D transaction on corporate position
  • analyze scenarios using any combination of properties in XI’s AssetBook
  • upload proprietary corporate ARO data for more detailed analysis and tracking
  • save your work for future reference and updating

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 cost model within XI’s ARO Manager 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 updated as more and more information becomes available. Users of the ARO Manager can work with the standard XI Cost Model, partially modify it to reflect their real-world costs, or create an entirely custom cost model. Professionals that contributed to the XI Cost 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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Contact our Sales Team to learn more about XI's liability tools.

 

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