While capital markets appear to be loosening slightly in 2018, investors are keenly aware of the growing importance of Liability Management and will be insisting on a clear, reliable estimate of asset retirement obligations (ARO) as part of due diligence on merger and A&D transactions.

Currently, most E&P companies rely on the deemed liability values within Alberta’s Licensee Liability Rating (LLR) program to estimate asset retirement costs. This can be misleading because LLR does not currently include all liabilities, and those that are included may not be truly representative of real-world costs.

On January 31, 2018, XI Technologies will present a case study that illustrates the potential financial risks of estimating asset retirement costs for Alberta portfolios based solely on LLR. Using real-world data and analysis derived from XI’s AssetBook, the purpose of this presentation is to raise awareness of the pitfalls of LLR and demonstrate why and how producers, capital providers, and non-op partners should seek a more complete and realistic picture of the long-term retirement obligations associated with any given asset or transaction.

XI Technologies Inc. invites Business Development, Finance, and Risk Management professionals working in the Alberta oil and gas sector to attend a free case study presentation outlining the key differences between the two most common methods of estimating the retirement liabilities of an asset during the M&A process.

 

REGISTRATION FOR THIS EVENT IS NOW CLOSED.


WHEN
: Wednesday, January 31st –8:45am to 10:30am    

WHERE: XI Technologies Training Centre (Suite 1700, 734 – 7th Avenue SW)

For any questions regarding this session or for more information, please email us or call 403.296.0964.

Interested in more articles like this? XI blogs regularly on topics related to Canadian oil and gas industry data, competitive analysis, A&D scoping, asset planning, business development, drilling, operations, regulatory compliance and risk management. Subscribe here.