Word to the Wise: As many as 239 E&P companies could boost cashflow by almost $0.94/BOE. Is yours one of them?

January 9, 2019

In a recent article, XI Technologies showed that as many as 239 Alberta E&P companies could be eligible for an LMR deposit refund that would boost their cashflow. Find out if your company is one of them.

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In this article, we’ll look at the average cashflow impact, in terms of price per BOE production, if these companies were to retrieve any unnecessary LMR deposit amounts.

In December 2018, the Alberta government had $201,775,293.07 in LMR security deposits from 329 companies. XI Technologies found that potentially 37 of these companies now roll up into other entities leaving 292 entities in question. For the sake of this article, we will work on the 292 companies that we have listed in XI’s AssetBook.

The total production for these 292 companies is equal to 588,882 BOE/day. That’s an average production per company of 2,017 BOE/day and cumulative annual production of 214,941,930 BOE.

If you take the $201,775,293.07 on deposit and divide it by the total annual production of 214,941,930 BOE, this works out to $0.94 per BOE of additional cash flow that could be in the hands of as many as 239 companies whose LLR is above the deposit threshold. Obviously, production rates and deposit amounts will vary by company, but with today’s tight margins, increased differentials, and volatile markets every dollar counts. Contact XI to see if your company may be owed a refund.