IN PROJECTS AND PEOPLE THAT STRIVE TO LIVE IN HARMONY WITH NATURE
Using science and technology to harness Earth's power
Using our science-based systematic approach for finding opportunistic deals, we are able to generate a sustainable flow of high-quality opportunistic ideas for our clients.
Most financial investors in oil and gas projects concentrate largely on reserve estimates. The science underpinning such data receives very little attention. Instead, financial analysts tend to rely on the qualifications and experience of investee company managers to deal with the scientific and technological issues. Even when some of those financial analysts or investors employ in-house geologists and engineers, the often passive contribution of such scientific advisers does not allow for a detailed understanding of the science behind the asset and recovery techniques for increased reservoir performance.
Our approach to the valuation of investment opportunities is based on the Petroleum Resource Management System (“PRMS”). PRMS is a fully integrated system that is focused primarily on estimated recoverable sales quantities. It is based on an explicit distinction between the chance or commerciality of the development project that has been or will be implemented to recover petroleum and the range of uncertainty in the petroleum quantities that are forecast to be produced and sold in the future from the development project.
The notion that science and technology increases returns from petroleum projects is an old idea. Nowadays, though, the view is not always held in esteem by Fund managers; it is considered amateurish and wrong, or it is caricatured as academic and dismissed, or else the whole subject of trying to understand the scientific drivers that affect Fund returns is shelved as too difficult. Yet, as history has proven, science and technology has a crucial impact on the success of any given project; the open question is how big of an impact.
MASTERCLASS
Investment analysts, investment officers
Integrate science and technology in your due diligence processes.
The aim of this course is to demonstrate a systematic approach for finding deals in the natural resources industry. Creating and sustaining a flow of high-quality deals is one of the core objectives of any sophisticated private equity professional. By dovetailing geological and enginnering assessment with the commercial assessment we are able to develop an edge in thematic and opportunistic deal sourcing by reviewing only relevant deals.
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