Whenever a company is involved in divesting or acquiring oil and gas assets, whether they are exploration ventures, appraisal opportunities or field developments, it is almost certain that a data room will be involved. Setting up a data room requires as much forethought and planning as attending one. If the attention to detail is lacking, from either the seller or the buyer, then the data room will not achieve its objective and the potential deal may not only be delayed, it may not occur at all.
What elements are required to set up a successful data room? What data are essential and what data are nice to have? Who should go to a data room? What should be done before, during and after the data room? How quickly can an adequate evaluation be done? The objective is to introduce the participants to frameworks and workflows that streamline the data room process, to gather the essential data, and to rapidly assess the opportunity while avoiding the trapdoors inherent in any oil and gas evaluation. The course participants will find the ideas and methods both interesting and worthwhile - allowing them to do better deals quicker and to (hopefully) avoid doing poorer deals.
Course Level: Skill Instructor: Bob Harrison
Designed for you, if you are...
A professional involved in asset valuation (executive, manager, technical expert, investor, auditor, banker or government official)
This course is primarily for buyers of producing assets, but the seller’s perspective, and how to deal with exploration ventures is also covered. It presents methodologies that are ready for immediate use by those involved in the technical and economic valuation of oil and gas exploration and production opportunities. It is suitable for an audience with a wide spectrum of technical experience, from those who are newcomers to the strange world of data rooms, to those who may have spent too many hours in them. The course not only explains what data rooms are, but how to survive them, and how to get a fit-for-purpose evaluation in front of the decision makers in the shortest timeframe possible.
How we build your confidence
The course format combines lectures, group work, and individual study. A number of case studies will be worked through, both in the lectures as well as in the breakout sessions.
The benefits from attending
You will appreciate what makes a good data room; including how vendors attract potential buyers to attend, and how the latter can decide whether they should go or not
You will learn how to prepare for a data room, what needs to be done there, and how to get a fit-for-purpose evaluation as quickly as possible afterwards
You will understand what essential data should be gathered and what questions to ask
You will discover how to avoid common pitfalls, how to quality control your quick look evaluations, and how to apply tips and tricks to get a rapid, but reasonable evaluation
Data rooms and why they are important
Physical data rooms vs. virtual data rooms - access, timing and cost issues
Data room framework, from the perspective of the seller and the buyer
The need for scepticism and how to recognize and avoid bias
Communication between sellers and buyers
The information memorandum - writing it and reading between the lines
What a company wants from its data room team - and when they want it
Selecting the data room team
What each member of the team should do before, during and after the data room
Due diligence - better volumetric estimates and production profiles
Rapid asset evaluation - how to make short cuts while avoiding pitfalls