Case Study

Asset Evaluation Onshore (Africa)

SLR was engaged to assist a client in evaluating a complex multi-compartment onshore field in Congo. This was a confidential process as the assessment was in support of an off-market approach to purchase the asset.

Location:

Congo

Client:

Confidential

Project Objectives:

  • Perform a multidisciplinary assessment of the asset including technical, commercial and economic considerations.
  • Value the asset and recommend a “buy” case with identification and evaluation of upsides.

Our Role

SLR undertook a comprehensive evaluation including the following:

  • Technical evaluation of the asset including subsurface evaluation, production performance assessment and production forecasts;
  • Multidisciplinary evaluation of the asset opportunities and risks; and recommendations on how to reflect these in the price;
  • Commercial evaluation including assessment of contracts and agreements;
  • Evaluation of capital and operating costs; and
  • Economic evaluation and sensitivity analysis of a range of cases.

The results were presented to the client at a peer review.

One of SLR’s core competencies is to bring clarity to complex field data such that key issues can be understood and addressed. 

The detailed evaluation of the historical well production identified a striking variation in reservoir quality between reservoir segments in this highly complex reservoir. SLR’s ability to understand the variation and clearly illustrate its impact was critical to understanding the value of the field and emerged as the governing factor in evaluating the economics of the seller’s proposed well programme. 

SLR performed the economics using their own Congo upstream model which allowed optimal integration of the technical and commercial assessment in the valuation. This was used to support informed discussions between the parties.

For further information please contact Nick Hooke or Phil Marlow.