scholarly journals E&P Lending

2013 ◽  
Vol 1 (2) ◽  
pp. 361-378
Author(s):  
Jason A. Schumacher
Keyword(s):  
Interest Rates ◽  
Oil And Gas ◽  
Debt Financing ◽  
Due Diligence ◽  
Horizontal Drilling ◽  
Multi Stage ◽  
Exploration And Production ◽  
Term Energy ◽  
Large Acreage ◽  
Oil And Gas Companies

Oil and gas companies frequently use debt financing in order to provide the large capital required to explore and develop large acreage blocks. With the rise of horizontal drilling in combination with multi-stage hydraulic fracturing, the average cost per well has skyrocketed. In order to access a bank’s cheaper money, an oil and gas company normally must have already found something worth finding. In return for a beneficial interest rate from a bank (as opposed to splitting the profits of the company with equity partners or paying mezzanine debt interest rates), the oil and gas company must get more ducks in a row than it had to get in a row to raise money from their friends and family, a venture equity, or a mezz debt source. Additionally, due to the special characteristics of oil and gas as an asset, special legal issues exist for bank lenders to navigate to insure they can recover on collateral in a first-priority lien position in the event that the oil and gas company borrower goes into bankruptcy. This Article explores the legal due diligence process of an oil and gas loan deal—addressing both the roles of the borrower’s counsel and the lender’s counsel in the process. Further, it addresses unique issues related to properly securing the collateral of an oil and gas company borrower under Texas law. It should be noted that this Article is related to exploration and production (E&P) companies, not companies involved with the midstream or downstream side of the business. This Article focuses on oil and gas properties located in the state of Texas; while the collateral rules will be almost the same in other states, only the Texas law perspective will be discussed. Some capitalized terms will be used. The term “Energy Lender” refers to a lender in an oil and gas loan transaction. The term “Borrower” refers to an oil and gas company borrowing money from an Energy Lender.

How does a community add value to the oil and gas industry?

2016 ◽  
Vol 56 (2) ◽  
pp. 571
Author(s):  
Stuart Trundle ◽  
Anne Probert
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil And Gas Exploration ◽  
Community Stakeholders ◽  
Exploration And Production ◽  
Oil And Gas Companies ◽  
Industry Community ◽  
Community Relationship ◽  
Insight Into

As pressure mounts for oil and gas companies to demonstrate tangible value to the communities in which they operate, there is a growing imperative for groups to actively engage with the industry and its operators. Regions who partner with the industry to identify and implement initiatives that leverage the investment can see very real economic and social gains from hosting oil and gas exploration and production. Venture Taranaki, the regional development agency for New Zealand’s only commercially producing oil and gas region, has been part of such a successful partnership in that area. They have worked extensively in the space between the industry and the community to maximise the benefits to the region. In doing so they have helped position Taranaki as a force in New Zealand’s economy, and it has developed initiatives that demystify and demonstrate the industry’s value to their community stakeholders, extending this momentum across the oil and gas supply chain. Its commercially neutral services have also advanced collaboration among the companies, fostered collective promotion of their capabilities, and assisted with management of demand-supply challenges in relation to project and shutdown planning. In this extended abstract the authors give an insight into their experiences, lessons for other regions, and proposals to further advance the industry-community relationship.

Improved Efficiency of Multi-Stage Fracturing Operations: An Innovative Pressure Activated Toe Sleeve

2015 ◽  
Author(s):  
Feng Yuan ◽  
Chris Palmer ◽  
Eric Blanton ◽  
John Tough
Keyword(s):  
Oil And Gas ◽  
Operating Efficiency ◽  
Productive Capacity ◽  
Horizontal Drilling ◽  
Pressure Testing ◽  
Multi Stage ◽  
Fracturing Process ◽  
Open Hole ◽  
Drilling Technology ◽  
Pressure Cycle

Abstract Over the last decade productive capacity of both oil and gas from previously uneconomic North American unconventional shale resources has been dramatically enhanced due to advanced horizontal drilling technology combined with multi-stage hydraulic fracturing treatment maximizing access to productive zones. Currently two types of multi-stage fracturing completion systems are in common use: The conventional Plug-and-Perf (P-n-P) method in cased holeFrac sleeves using open hole (OH) packers or cementing to isolate multiple stages To streamline the fracturing process, a new pressure-activated toe sleeve has been developed for both methods which is run in the hole on the bottom of the completion string and actuated after two pressure applications. This sleeve isn't immediately open after the first pressure application, so casing integrity pressure testing can be conducted and pressure can also be held indefinitely to satisfy a range of regulatory requirements. As the second application of pressure is bled down, the sleeve locks open and then composite plugs for P-n-P or balls for frac sleeves can be pumped down to begin subsequent stimulation operations. This toe sleeve is especially beneficial in P-n-P completions, as an alternative to tubing conveyed perforating (TCP) to initiate pump-down operations, eliminating the initial perforation run. As a result the following features and benefits can be realized: This toe sleeve is is hydraulically actuated after two separate pressure cycles applicationsEach pressure cycle application can be held indefinitely for casing integrity pressure testing to satisfy all expected regulatory requirementsThere is no restriction on the time between two pressure applicationsIt eliminates the need for TCP perforating in the first stage of a cemented P-n-P completion at the toe of wellMultiple sleeves can be installed and activated open simultaneously at the toe of the completion stringThe toe sleeve design incorporates port areas sufficient to pump the first stimulation operation, adding an additional zone to any fracturing completion The toe sleeve is fully cement compatibleThis paper will present the operational mechanisms and a case study of the use of this unique toe sleeve which adds significant operating efficiency and lowers the cost of multi-stage fracturing with valid casing integrity pressure test.

MARKET STRATIGRAPHY—THE 25-YEAR ODYSSEY OF THE AUSTRALIAN PUBLICLY-LISTED OIL AND GAS SECTOR (IS THE SMALLER E&P COMPANY THREATENED WITH EXTINCTION?)

2001 ◽  
Vol 41 (1) ◽  
pp. 803
Author(s):  
P.J. Cameron ◽  
J.G. Baird
Keyword(s):  
Oil And Gas ◽  
Oil Price ◽  
Market Sentiment ◽  
The Past ◽  
Exploration And Production ◽  
Substantial Investment ◽  
Production Company ◽  
Oil And Gas Companies ◽  
Risk Investment ◽  
Oil And Gas Sector

A market view of the population of publicly listed oil and gas companies during the past 25 years provides insights to the survival of the smaller exploration and production company. Mapping the life span of companies, and company population against parameters such as oil price and market activity, demonstrates that oil price is not the crucial driver for the industry as one would expect. The number of exploration companies existing at any one time is independent of oil price and discovery levels, but is more closely related to market sentiment and external influences. The benefits of success are apparent, but the vulnerability of smaller companies to that success is also apparent. While the ASX Energy Index has significantly out-performed the market, and the resources sector in general over this period, it is still considered a high-risk investment area, which fails to attract substantial investment funds.At a time of an apparently sustainable higher oil price, and record market levels, why is the level of new corporate activity so limited? In stratigraphic terms, is the survival of this species threatened? Was Darwin right—will the strong get stronger and will the small E&P company be driven to extinction?

scholarly journals APPARATUS AND METHODICAL COMPLEX FOR DETERMINATION OF OIL-GAS RESERVOIRS PARAMETERS WHILE DRILLING HORIZONTAL WELLS

2019 ◽  
pp. 20-25
Author(s):  
M. Bondarenko ◽  
V. Kulyk ◽  
Z. Yevstakhevych ◽  
S. Danyliv ◽  
V. Zinenko ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Water Saturation ◽  
Small Diameter ◽  
Horizontal Wells ◽  
Physical Models ◽  
Gas Reservoirs ◽  
Exploration And Production ◽  
Oil And Gas Companies ◽  
Oil Gas ◽  
Logging Tool

The paper is devoted to the basic principles of the trend of logging, namely logging while drilling (LWD), which is new for Ukraine. The LWD technology has a number of advantages over other logging types, in particular, in supplementary exploration and production of hydrocarbons in fields that are in longterm development. In this case, the drilling of horizontal wells, which by productivity is much higher than the vertical ones, is important. For the investigations of horizontal wells, we proposed a universal compact radioactive logging tool with small diameter, which is placed in entire drill collar just before drilling. The combined radioactive logging tool LWD-КПРК-48 (48 mm in diameter) contains dual-spacing modules of neutron logging, neutron-gamma logging, density logging, as well as separately placed gamma-logging unit. Calibration works with the developed combined tool were carried out on physical models of reservoirs in the presence of drill collars and corresponding calibration dependences on porosity and density were obtained. They, together with the developed methods and other data, allow us to determine an extended set of petrophysical parameters, namely, the porosity of water-, oil- and gas-saturated reservoirs, the identification parameters of fluid: water – oil and water – gas, oil-, gas- and water saturation, volume content of oil and gas, etc. Test of a logging tool LWD-КПРК-48 when drilling a horizontal well in an oil-bearing bed showed high informativity and efficiency of product. The created apparatus and methodical complex for the investigation of horizontal oil and gas wells while drilling has several advantages over known analogues, in particular, is universal, convenient, more available to mining and well logging oil and gas companies.

scholarly journals Conceptual approaches for building a balanced portfolio of projects in oil and gas companies in exploration and production sector

2019 ◽  
Vol 140 ◽  
pp. 03004 ◽  
Author(s):  
Konstantin Molchanov ◽  
Natalia Romasheva
Keyword(s):  
Portfolio Management ◽  
Oil And Gas ◽  
Supply And Demand ◽  
Price Volatility ◽  
Minimal Risk ◽  
Strategic Decisions ◽  
Exploration And Production ◽  
Oil And Gas Companies ◽  
Capital Intensive

Uncertainties such as price volatility, supply and demand, global warming, technological progress, geopolitical situation, force the capital-intensive oil and gas sector to create a flexible portfolio of projects to proactively respond to changes. In an increasingly complex and uncertain environment, oil and gas companies around the world face continued pressure. It has become difficult to make strategic decisions and build long-term plans, so it has become vital to have a balanced portfolio. We suggest that in order to achieve the goals and maximize profitability, companies need to develop indicators for balanced portfolio, which will allow to evaluate the portfolio and rank the current and potential projects in order to create flexibility with minimal risk. In the article, we analysed modern approaches and benchmarked companies` tools for portfolio management, current situation in industry, identified risks and indicators for evaluation. We received the tool for quantitative evaluation for portfolio.

scholarly journals Challenges for sustainable development strategies in oil and gas industries

2018 ◽  
Vol 12 (1) ◽  
pp. 626-638 ◽  
Author(s):  
Ali Asghar Sadeghi Mojarad ◽  
Vahid Atashbari ◽  
Adrian Tantau
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Financial Stability ◽  
Fossil Fuels ◽  
Oil And Gas ◽  
Working Environment ◽  
Operational Environment ◽  
Strategic Decisions ◽  
Exploration And Production ◽  
Oil And Gas Companies

Abstract The oil and gas industries remain an important drive for the world economy. On one hand, global demand for fossil fuels is still rising, and on the other hand, companies face complex investment challenges due to the harsh operational environment of exploration and production activities. Workforce regulations aim to provide a safe and secured working environment. However, exploration and production activities still cause local and global environmental risks such as groundwater contamination, or climate change in broader scale. Analyzing and reporting mechanisms are key performance indicators of sustainable development at the level of oil and gas companies. Obtaining and analyzing required data, nevertheless, seem to be a persistent challenge as to what degree these findings can affect the routine and strategic decisions of the oil and gas companies. In order to enable oil and gas companies to measure and control risks and manage incidents, artificial intelligent technologies in extended monitoring and supervising E&P operations is known to be an efficient prevention strategy. Such tools not only aid in profitability of the oil and gas companies, but also increase awareness of environment and climate change to act more responsibly. In this study, the significances of environmental policies were investigated through interviews with executives and stakeholders, revealing that the implementation of environmental protection policies is affected by the financial stability of the companies, and under severe economic situations, companies seem less enthusiastic in strictly implementing those policies. This paper provides a comprehensive review of emerging technologies in addressing existing and foreseen challenges in sustainable development in oil and gas industries, with the aim of suggesting prime solutions for strategic planning attempts.

Russian oil and gas projects abroad will be selective

2018 ◽  
Keyword(s):  
Foreign Investment ◽  
Oil And Gas ◽  
Content Type ◽  
Private Military Companies ◽  
The Us ◽  
Global Presence ◽  
Exploration And Production ◽  
Oil And Gas Companies ◽  
Retained Earnings ◽  
Investment Choices

Subject Russian oil and gas companies' foreign investments. Significance Russia's oil and gas majors have a widespread global presence but their rate of expansion and investment abroad in their primary areas of activity -- exploration and production -- has been moderate. Foreign investment choices often reflect the Kremlin's geopolitical preferences. Impacts Companies' increased retained earnings due to higher oil prices will give them additional resources for foreign investment. Companies investing in high-risk zones may seek protection from private military companies if the regular military cannot provide it. The US Treasury's relaxation of Rusal sanctions shows the limits of deploying such measures against globally integrated companies.

scholarly journals Developing Corporate Sustainability Assessment Methods for Oil and Gas Companies

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 58
Author(s):  
Tatyana Ponomarenko ◽  
Oksana Marinina ◽  
Marina Nevskaya ◽  
Kristina Kuryakova
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Oil And Gas ◽  
Sustainability Assessment ◽  
Corporate Sustainability ◽  
Practical Importance ◽  
Health And Safety ◽  
Exploration And Production ◽  
Corporate Social ◽  
Oil And Gas Companies

As it is predicted that there will be a decrease in production at the oil and gas facilities that are currently operating, it becomes necessary to start developing new oil and gas fields. This results in changes to the state’s policy regarding the participation of private companies in the development and implementation of oil and gas offshore exploration and production new projects. Access to unique fields can be provided to the most socially responsible companies. The purpose of this study is to present the author’s methodology for assessing the dynamics of corporate sustainability. The methodology is based on the assessment of individual, well-founded indicators of sustainable development of companies. The proposed methodology takes into account factors in areas such as occupational health and safety, environmental protection and economic efficiency and identifies two performance indicators. The first indicator is an aggregated index for three groups of factors to assess company ratings relative to the performance of the best company. The second indicator is an assessment of the dynamics within the company relative to the previous values of indicators of corporate social responsibility. The research results obtained using the proposed methodology show that oil and gas companies differ significantly in terms of corporate sustainability. The developed methodology for assessing corporate sustainability is of practical importance and can be used by companies in the analysis and planning of operating and investment activities that ensure the achievement of goals of corporate social responsibility.

Specific financial and stock indicators as a sign of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (3) ◽  
pp. 529-553
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Stock Market ◽  
Oil And Gas ◽  
Raw Materials ◽  
Publicly Traded ◽  
Consolidated Financial Statements ◽  
Hydrocarbon Production ◽  
Exploration And Production ◽  
Net Revenue ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Subject. The article considers the specific financial and stock market indicators of the 25 biggest oil and gas companies from 2006 to 2018. Objectives. The aim is to identify key trends in the specific financial and stock market indicators of leading publicly traded oil and gas companies and reveal the factors that have led to this transformation, during the study period. Methods. The study draws on methods of comparative, financial, and economic analysis, as well as generalization of materials of consolidated financial statements. Results. The study established that the prolonged industry crisis had the strongest impact on the group’s performance, and independent companies were the most affected. Negative trends were evident in the period of high oil prices, when specific capital expenditures in the exploration and production sector increased, while profitability and market appreciation of the barrel of production declined. The industry crisis only aggravated the situation in the industry. It was revealed that the processing of purchased raw materials, as well as the resale of products, may have a significant impact on the specific net revenue from core activities. The study identified that having a serious difference in the level of debt, it is better to use an indicator of company's market value, rather than capitalization. Conclusions. There is a decrease in the specific profitability of hydrocarbon production in the stock market segment of the industry. It has an adverse effect on the market attractiveness of the oil and gas sector.

Petroleum Resource Rent Tax: an update on recent developments

2012 ◽  
Vol 52 (2) ◽  
pp. 654
Author(s):  
Ian Crisp
Keyword(s):  
Oil And Gas ◽  
Due Diligence ◽  
Resource Rent ◽  
North West ◽  
The Past ◽  
The North ◽  
Petroleum Resource ◽  
Recent Developments ◽  
Key Issues ◽  
Oil And Gas Companies

Although the Petroleum Resource Rent Tax (PRRT) has been operating for longer than 20 years, the past few years have seen a significant amount of activity on this front: The announcement by the Australian government, on 2 July 2010, to expand the existing PRRTto include onshore oil and gas projects, including coal seam gas projects and the North West Shelf Project. The release of three ATO draft taxation rulings in 2010 about the pre-conditions for the deductibility of project expenditure, excluded expenditure (including indirect administration expenses) and the treatment of expenditure paid under ’sub-contractor’ arrangements. The courts’ decisions about the treatment of contract payments and the application of the PRRT taxing point. This extended abstract explores these developments as they apply to existing and new PRRT taxpayers, and identify the key issues that oil and gas companies will need to be aware of as they continue or commence compliance with the PRRT. This extended abstract also explores the impacts of these developments on transaction structuring, due diligence, financial modelling and fiscal certainty in the broader context of asset portfolios.

Sign in / Sign up

Export Citation Format

Share Document