Moving from a “Holistic Approach” to a Realistic Approach: XI’s LCA Peer Group session
October 27, 2022
Since the release of Alberta’s Licensee Capability Assessment (LCA) system as part of the new Directive 088, our industry has been working to understand what it means for their operations. There have been several helpful articles, webinars, and live sessions to help people understand the directive and its stated goal of introducing a “holistic assessment of a licensee’s capabilities and performance across the energy development life cycle.” But what is frequently missing is what that means in practice: what are some real-world issues are operators facing when operating under the new Dir 088 environment? What data do you have available when doing research? How does this new approach integrate with workflows such as A&D scoping?
A Realistic Approach
To help fill this gap, XI Technologies hosted a peer group session among select representatives that are currently working in the LCA trenches. The purpose of this session was to share knowledge on different approaches to LCA, identify any knowledge gaps, and to learn from each other. This was an opportunity to learn how LCA is affecting real life workflows, identify pain points, and help establish a realistic approach to LCA.
From the session we learned that there is a real desire to work within the LCA system to meet the objectives laid out by the AER but getting detailed LCA information has been a struggle. Companies are given their own scorecards from the AER, however when it comes to finding similar information on potential acquisitions, this over the fence data is limited to post-letter of intent data room deep dives.
We were excited to share our new LCA Report tool with the assembled group of experts. Our goal was to get their valuable input on how it can help them incorporate LCA into their A&D workflows and to brainstorm on where our development should go from here.
A “Wow” Moment
Those in attendance were excited by the amount of pre-data room information they could find in our LCA Report. The consensus was that this LCA information is critical data for A&D purposes. They identified various ways to view the report, from comparing companies on key metrics to understanding where they can bring value to an acquisition target, particularly from an operational, asset lifespan, liability, and closure perspective.
We also learned that these experts would find even more value if it were also presented in other ways. For example, in addition to the peer summaries and area-based presentation of data, a pro forma buy/sell report would be useful.
We left this session with a better understanding of what the industry needs in terms of LCA and A&D scoping. Our current LCA Report, available to any AssetSuite user with the LLR module, provides critical public data that is difficult to get anywhere else. Our development roadmap going forward will look to enhance that data to deliver users what they need to know, how they need it.
It was truly energizing to be in a room full of engaged, solution-driven individuals in the LCA space. Directive 088 may have introduced a lot of changes and a little confusion to the industry, but at XI we’ve always found the best way to deal with either is to gather some smart people in a room and share ideas and this was an excellent opportunity to do just that.
Contact us today if you’d like a demo of AssetSuite’s LCA Report or click here to register for a training session. For more information on what you need to know about Directive 088, visit our blog.