Oil and Gas Pricing And Working Out the Value of Assets
Oil and Gas pricing denotes what exactly a company’s oil and gas reservoir (Assets) is worth. There are no hard and fast rules of this and absolutely no standard that should entail when exactly the worth of an asset requested. As many parts of the world are under the control of varying Governments, with different rules and regulations surrounding them all, a site in one area of the world may be subject to an oil and gas pricing request far more frequently than another.
Oil and Gas Pricing might be requested for a number of reasons throughout the lifetime of the asset for any number of reasons. Some of these may include reserves calculations for an annual corporate report- or even as leverage for reserve-based lending. Another reason might entail asset modelling, for investment decisions to aid in your company’s future. Another reason may be for Fair Market Valuation, and other measures of due diligence. Of course, oil and gas pricing of your assets may even be requested for Full value studies – for M&A and defence processes.
Of course, getting an accurate and an impartial read as to what your asset is worth is not a simple thing. It’s hardly a matter of sticking a giant dipstick into a well, and there are specialist companies out there which have a good amount of experience in oil and gas commercial modelling, and can give an accurate read, as well as pick up on key features of your asset, including value chains, conversion factors, production costs, abandonment costs, as well as keep you informed on the amount of tax which will have to be paid.
ERCE, based in the UK, have over 30 years’ experience as an oil and gas reservoir evaluation company, and can assist your firm with due diligence, and have experience of PSC, tax and royalty systems on a worldwide basis. Furthermore, their corporate valuations will help the world (and even your firm) understand where the value in your portfolio lies – and their clients are more than welcome to access their ongoing research on current oil and gas prices and analytics worldwide.
