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Data Room Management for M&A Activity in the Oil & Gas Sector (PBM05)

    Description

    Whenever oil & gas assets are being bought or sold, whether they are exploration ventures, appraisal opportunities or field developments, it is inevitable that a data room will be involved. Setting up a data room needs as much planning as attending one. If attention to detail is lacking, from sellers or buyers, then the data room will not achieve its objective and the potential deal may not be done. The evolution of the “virtual physical data room” to meet the challenges of these post pandemic times is discussed. Frameworks and workflows are introduced to streamline the data room process; key requirements for a successful data room; essential vs. nice to have data; data room team selection; who does what, where and when. After gathering data, how to quickly provide buyers with an adequate evaluation to allow assessment of the opportunity whilst avoiding any ‘banana skins’ is discussed. 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
    Duration: 3 days
    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 both sellers and buyers of producing assets, but dealing with exploration ventures is also covered.
    Methodologies are presented 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

    • Appreciation of 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
    • Learning 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
    • Insight into how data rooms are being adapted for the post-pandemic business environment
    • Understanding of what essential data should be gathered and what questions to ask
    • Discovering 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

    Topics

    • Due diligence, definitions and doubt
      - The need for scepticism and how to recognize and avoid bias
    • Data rooms and why they are important
      - Physical data rooms vs. virtual data rooms; access, timing and cost issues
      - “Virtual physical data room”; a new format for these post-pandemic times
    • How sellers and buyers communicate with each other
      - Data room documentation
      - The information memorandum - writing it and reading between the lines
    • What to do before, during, and after the data room
      - Data room framework, from the perspective of sellers and buyers
      - Selecting the data room team
      - What a company wants from its data room team - and when they want it
      - Exactly what is technical due diligence
    • When things go pear-shaped
    • Tips for quicker focused evaluation
    • QC of inputs to estimate petroleum initially in place and technically recoverable volumes
    • Barrel of oil equivalent - a misleading unit
    • Chance of geologic discovery vs. chance of development
    • Resource reporting systems that meet international standards

    Customer Feedback

    "The instructor was sharing real cases from his own experience, explaining the situation and inviting the attendees to suggest solutions. Very interesting." - Geophysicist at ETAP


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