Word to the Wise: Open Asset Evaluation for January 2022

January 18, 2022

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 Crewd Oil and Gas Inc. full asset divestiture in Estevan Saskatchewan for sale by PNG Exchange.

Potential Deals

An important thing to do when evaluating a potential 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 running a quick search in the AssetBook. By expanding the area, we can see there are about 19 companies with interest in this area.  Here is a map of the top companies wells and land in this area:

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

Asset Retirement Obligations

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 summary for the wells and facilities listed for sale. XI’s industry-leading cost model estimates the discounted Working Interest ARO value. In addition, our new Emissions tool allows you to look at the 12-month rolling total GHG in tCO2e.

We’ve run reports on the liabilities on these assets; to download them click the following links:

• ARO report of assets
• Emissions report of assets

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 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.