Word to the Wise: Open Asset Evaluation for September 2021

September 7, 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. To help with this, XI Technologies regularly applies 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 Mancal Energy Inc. (“Mancal”) oil & liquids property divestiture in Karr, Redwater, and Sawn Lake areas of Alberta.

Potential Deals

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 areas by running a quick search in the AssetBook. These areas are somewhat spread out so it would be worth examining each one separately. but for this exercise we will look at the full package and see who may be interested. We can see there are about 262 companies with interest in these areas. Here is a map of the top ten companies wells and land in these areas:

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. 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 reports on the liabilities on these assets, to download them click the following links:

In addition to knowing an asset’s ARO numbers, it’s helpful to know the scheduling of those obligations and how they will fit into your company’s short, mid, and long-term planning. Here’s the undiscounted liability scheduling of these assets:

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.