You own a mix of O&G projects, some producing, some being developed, and others waiting to become economic. You need to plan whether to continue producing, acquire additional projects, dispose of some, or enhance others.
The software enables you to quickly consider the alternatives available, taking into consideration your projects’ production forecasts (including uncertainty), development costs, and price deck. See which projects best fit your available capital, goals, and constraints. You can also take into account your preference for owning all of a project or using joint ventures. The uncertainty in any forecast is made visible, so you can develop plans for different outcomes that are out of your control.
Valuing acquisitions (or options on acquisitions) is more than just a forecast of that one project. Buying it means you may decide to delay or not buy others. It may mean you need to dispose some assets, or take on additional equity or debt. It affects your ability to maintain dividend payouts. You will be able to see what value an acquisition adds to your overall portfolio so you know what it is worth to you, considering alternative uses of the capital.
Take our “Introduction to Portfolio Analysis” course at PetroLessons.com!