Word to the Wise: Open Asset Evaluation for September 2020

September 9, 2020

Succeeding in oil and gas M&A comes down to how well and how quickly you can analyze potential opportunities. Once a month, XI Technologies will apply its evaluation tools to a currently available asset to give readers a sense of the opportunities available and how they can be evaluated for A&D purposes.

Each week, XI Technologies scans its unique combination of enhanced industry data to provide trends and insights that have value for professionals doing business in the WCSB. If you’d like to receive our Wednesday Word to the Wise in your inbox, subscribe here. 

For this month, XI will examine the property sale by the City of Medicine Hat. On September 8, 2020, the City of Medicine Hat announced that it had engaged Sayer Energy Advisors to assist with the sale of non-operated interest in the Medicine Hat Glauconitic “C” East Unit.

Potential Buyers

An important thing to do when evaluating a potential land acquisition is to look at who the most likely bidders for the asset would be. The first thing to check for is who has a core interest in the area. By expanding the area using a search in AssetBook, we can see there are about 74 companies with interest in this area. Here is a map and list of the top ten companies wells in this area:

Click here to download a full spreadsheet version of this report.

Asset Liabilities

One of the most important parts of A&D research is to look at the liabilities carried by the asset. Looking at these assets, it would be difficult to assess the liabilities as none of these are licensed (operated) by City of Medicine Hat. However, we have provided an XI ARO calculation estimate based on our cost model, which you can download here.

These are just a few quick ways to do A&D prospecting, using a real-world example that is currently available for purchase. If you’d like to learn more about how XI’s AssetSuite can analyze potential acquisitions, contact XI Technologies.