GEOLOGICAL AND TECHNICAL SUPPORT OF INVESTMENT DECISIONS

Mergers and acquisitions in the oil and gas industry (M&A) begin with a due diligence. Conducting a comprehensive geologic and technical analysis and valuation of assets in mergers and acquisitions should be carried out with increased prudence and caution. In any transaction in the oil and gas asset market, it is necessary to carefully study all aspects of the planned investment and the asset itself, to obtain a comprehensive understanding of the geology and reserves, as well as other key components of the planned transaction.

 

Heologic’s role in an acquisition or merger is to ensure, through a thorough analysis of historical data and development plans, that the target assets are correctly valued, reserves and growth potential are determined to form the fair value of the investment.

 

Understanding existing and potential geologic and technical issues and the formation of value drivers of an unfamiliar asset can be challenging, but with the right specification, geologic and technical expertise can bring significant benefits to the acquirer of the asset.

 

At each stage of the project, we assess the completeness, relevance and completeness of the data. Armed with this knowledge, you can confidently decide to proceed, negotiate new terms or specifications, or possibly cancel the transaction.

 

Many of our experts have held senior positions with major international oil and gas companies, have years of experience in the oil and gas industry, and have skills that cover all aspects of potential asset acquisition transactions. You can be sure that we will provide a fully integrated team with which you will achieve your M&A goals.

Your benefits when working with Heologic under M&A deals:

  • Large pool of specialists

  • Comprehensive industry knowledge

  • Access to industry data and insider information

  • Comprehensive geological and technical assessment of the project and costs

  • Accurate evaluation of assets and their performance

  • Detailed risk analysis and modeling

  • Better understanding of risks and mitigation actions

  • Independent geological, technical and commercial advice

  • A stronger negotiating position

  • Efficient use of your time and resources

  • Alternative options and conditions for entering into transactions

SERVICES FOR THE ASSET SELLER

Our sell-side services include pre-sales, asset or company data management, feasibility studies, virtual data rooms, downstream bid evaluation and negotiation strategies.

SERVICES FOR  THE ASSET BUYER

RED FLAG ANALYSIS

The service is an initial verification tool designed to identify any geological and technical aspects of a transaction that are associated with significant risks and potentially severe consequences. Our team categorizes any issues identified using the traffic light scheme, including areas that require additional due diligence or that may require additional data to be provided for a full uncertainty or risk assessment. The review covers all aspects of the asset, from subsoil to infrastructure facilities, and includes a review of the planned development of the field.

DETAILED CHECK

The detailed due diligence is based on the initial red flag test. This fact allows you to dive deep into a potential deal, during which our multidisciplinary teams can address a wide range of technical and commercial issues. If necessary, we can provide an independent commercial valuation of the asset. All due diligence activities are carried out by the same teams that have extensive experience in preparing reserves reports or development planning reports.

STAGES OF WORK

1. PRE-PROJECT PREPARATION, DEVELOPMENT OF TERMS OF REFERENCE, DATA AUDIT

 

2. EXPERTISE:

 

  • General Geology

  • Production Geology

  • Drilling

  • Seismic

  • Geophysics

  • PVT

  • Petrophysics

  • Development and production technology

  • Economy

  • Field development and infrastructure

  • Historical data

 

3. OWN EVALUATION:

 

  • Uncertainty analysis

  • Probabilistic assessment of the resource base

  • Calculation of production profiles

  • Drilling program

  • Arrangement (concept)

  • Economy

  • Consulting

 

4. PREPARATION OF THE PROGRAM OF WORK:

 

  • Prospecting and exploration

  • Development (Production)

  • Arrangement (Concept)

  • Economy (Taxes/benefits)