Challenges & Solutions

Challenges to Third Party Assessments and Values


  • Traditional third party reserve reports are often assembled quickly, with little due diligence, and may be influenced by the client company.
  • Third party reserve reports often have no risks associated with drilling and flowing proven non-producing (PDBP, PUD, PDSI) reserves – both technical and mechanical risks.
  • Some management teams become so enamored with their drilling prospects and portfolio they find it difficult to evaluate them dispassionately and objectively.
  • Some companies and management teams have difficulties communicating technical information in a manner that can be translated easily into financial terms and may overlook key risks or costs associated with finding and developing new opportunities.


Solutions

  • As part of a complete technical review process, INEXS creates a summary report that is a P50 most likely outcome focused on defining and implementing the highest value field operations to maximize cash flow, through the process of generating an independent risk weighted NPV-10 / Investment value for all non-producing future well operations – including Probable and Possible reserves.
  • INEXS provides complete technical project management, with teams that evaluate the technical data, deliver the summary report, with options to implement the drilling, production, abandonment and environmental operations, and deliver the results efficiently and cost effectively.