Operations to Divestiture: Banks, Private Equity, and Financial Advisors

Posted by Stokes and Spiehler

Stokes & Spiehler and its colleagues, Eureka Energy Advisors & HJ Gruy and Associates, have collaborated to write the attached white paper that explains our approach to support financial institutions that find themselves holding oil and gas properties as the result of the recent downturn. Contact us to discuss how we might be able to assist you with the potential challenges. 

OPERATIONS TO DIVESTITURE: Banks, Private Equity, and Financial Advisors

Coupled with the worldwide health crisis, the oil and gas industry has suffered catastrophic losses resulting from the major downturn in commodity prices. Recently, Eureka Energy Advisors, H.J. Gruy and Associates, Inc., and Stokes & Spiehler collaborated to formulate procedures for handling the potential ownership changes affecting the industry over the next several months. We prepared an operational strategy to assist financial institutions challenged with owning oil and gas properties. Extensive tabletop exercises were conducted to identify potential situations and develop solutions. Our resulting plan is designed to provide essential support needed to operate and maintain economically distressed assets. Through our partnership, we will deliver expertise and resources ranging from asset management to field operations until a favorable divestiture is achieved.

Scalability and adaptability are built into our established multi-step workflow to address assets of varying size and scope of engagement. Once a specific field is identified, a multi-step strategy and procedural plan will be tailored to the asset.

The basic workflow includes:
     · Site inspection and data preservation
     · Reserves review and operations assessment
     · Findings report with go-forward options
     · Continued operations while maintaining regulatory and environmental compliance
     · Regular status reporting to the financial entity
     · Preparation of the asset details for the data room and the divestiture

We have the skills, the resources, the experience, and the plan to implement a successful and beneficial program to operate and divest an oil and natural gas field.

Eureka Energy Advisors, H.J. Gruy and Associates, Inc. and Stokes & Spiehler are registered engineering firms. Eureka Energy Advisors provides project management expertise in multidisciplinary field operations and strategy development including drilling, well control, production, safety and administration, and environmental. H.J. Gruy and Associates provides SEC and PRMS reserves evaluations, economic analysis, field studies, reservoir engineering, geology, geophysics, and petrophysical analysis. Stokes & Spiehler provides field and wellsite supervision, regulatory compliance, drilling, production, and operations engineering. Standard Operating Company, an affiliate of Stokes & Spiehler, is available to become the operator of record and provide daily field services.

Click the "Contact us" button below and we will help you navigate the operations-to-divestment path.

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