Abandonment and Reclamation

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Word to the Wise: Understanding the reclamation cost discrepancies between LLR and ARO

Today, let’s look at how well reclamation costs are typically the largest discrepancy between deemed liability values and ARO costs. Each week, XI Technologies scans their 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: Why using LLR can cause inaccurate abandonment cost estimates

The Alberta Energy Regulator’s Licensee Liability Rating (LLR) Directive 011 deemed liability values are the most commonly accepted measure of asset retirement obligation (ARO) in Alberta. Unfortunately, as we at XI Technologies have discovered, these values may not provide an accurate assessment of ARO, resulting in values that are either too high or too

Word to the Wise: Alberta’s IWCP is decreasing non-compliant well counts by nearly 40 per cent

Alberta operators are making significant efforts to ensure compliance with provincial standards for suspended or inactive wells.  Each week, XI Technologies scans their 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

Word to the Wise: BC’s mandatory closure laws will force companies to spend up to $64 million on abandonments in the next 2.5 years

The announcement of new Dormancy and Shutdown Regulation and Comprehensive Liability Management Plan (CLMP) legislation, effective May 31, 2019, will have significant financial impact on operators with assets in BC. The first mandatory timelines for site closure to be introduced in Canada, the focus right now is on existing sites that were considered dormant

Word to the Wise: BC’s new mandatory closure timelines will keep companies hopping to meet first quota in 2021

In a move that other western Canadian provinces will be watching and likely echoing, the BC Oil and Gas Commission (the Commission) has announced the Dormancy and Shutdown Regulation and Comprehensive Liability Management Plan (CLMP) legislation effective May 31, 2019. With this announcement, BC becomes the first province to introduce mandatory timelines for site

Word to the Wise: Bank redeterminations now include a detailed ARO component – are you ready?

Redetermination of bank credit facilities is an annual or semi-annual exercise that almost all E&P companies have become used to. Each week, XI Technologies scans their 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: Better business intelligence helps service companies land abandonment and reclamation contracts

There’s no doubt the current business climate has been particularly tough on energy supply and service companies. Each week, XI Technologies scans their 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