Implemented technical due diligence on a farm-in being transacted by our client to acquire:
1. A 15% Working Interest in the Tilenga Upstream Project, located on Lake Albert
2. 20% of the shares associated with EACOP
Technical Due diligence considered the two portions of the asset separately:
1. Tilenga Upstream we implemented a full subsurface assessment – geophysics, geology, petrophysics and reservoir engineering – to ensure the resources in the transaction had been correctly established in accordance with the PRMS. In addition we implement a facilities assessment covering: drilling, surface facilities and infield flowlines and pipelines.
2. EACOP: we implemented a full pipeline and facilities assessment of this major new pipeline which will be heat traced, heavily insulated and buried
In implementing out technical assessment the main feature that affected all of our evaluations was the heavy, viscous nature of the oil and its high wax content all of which create significant problems in ensuring a reliable production and transportation system is put in place. A key feature of the work was the performance of a risk assessment to identify key threats to the long term viability of the project.
The second part of the work was the commercial assessment. Here we verified all development, operating and abandonment costs to ensure that the potential for cost overruns during project implementation was minimised. We also verified the Seller’s resource assessment and developed four production case that formed the basis for the Buyer’s development of an indicative offer. We developed our own economic model for the project to verify the Seller’s valuation and to establish a Buyers valuation
