Word to the Wise: Open Asset Evaluation for May 2021

May 25, 2021

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

Succeeding in oil and gas development 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.

For this month, XI will examine the receivership sale of SanLing Energy Ltd. The properties are separated into geographical packages, so for this evaluation, we will look at the Peace River Arch property.

Potential Deals

Using AssetBook and approximating the area outlined in the press release, we can see that there are 109 companies who have production in this area. 41 different companies have at least 50% of their total holdings there.

Asset Liabilities

One of the most important parts of A&D research is to look at the liabilities carried by the asset. We can provide an ARO list for the well assets listed for sale. XI’s industry leading cost model estimates the discounted Working Interest ARO value to be within reason with the LLR values calculated on these assets. We’ve run the LLR report on the liabilities on these assets, to download it click the following link:

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.