Reserves Assessments and Appraisals

One of the primary reasons DeGolyer and MacNaughton was formed was to support banks and oil producers with the process of reserves assessments. Since its formation, the company has completed thousands of reserves assessments worldwide, enabling producers to report to investors and regulators, helping buyers and sellers accurately project the worth of assets and enabling companies to develop capitalization and financing strategies. Of all the services it provides, D&M offers perhaps the most depth in this arena.

D&M offers assistance with the following activities:

• Estimation of oil, condensate, gas, and natural gas liquids reserves
• Undeveloped reserves estimates and classification
• Development planning assistance and expertise in both undeveloped and underdeveloped fields
• Appraisals
  ◦ Net cash flow
  ◦ Fair market valuations
  ◦ Production Sharing Contracts (PSC)
  ◦ Estate valuations
  ◦ Profit-sharing trust valuations
• Stock exchange registrations and filings
  ◦ Securities and Exchange Commission
  ◦ London Stock Exchange
  ◦ Australian Stock Exchange
  ◦ Brazilian Exchange
  ◦ Stock Exchange of Hong Kong
  ◦ Canadian Provincial Securities
  ◦ Indonesian Exchange
  ◦ European Exchanges
• Initial public offering and Competent Person’s Reports
• Reserves audit evaluations
• Gas certifications and deliverability studies
• Unitization studies
• Expert witness testimonies
• Mergers and acquisitions
• Divestitures
• Joint ventures
• Ad valorem, income, estate and probate taxes
• Data room representation
• Technical data preparation, gathering and interpretation
• Equity re-determinations
   

Examples of D&M’s work across all of these service offerings include:

Worldwide Evaluation of Reserves for the Conoco IPO

In October 1998, Dupont announced that it would divest its upstream energy subsidiary, Conoco. This resulted in the largest Initial Public Offering to that time in history and raised $4.4 billion (USD) for Dupont. D&M is proud to have been part of this momentous event. As part of the process to register shares for sale, an independent review of Conoco’s reserves was required. D&M, with its global experience, evaluated Conoco’s worldwide reserves within the required timeframe allowing the project to be completed on time.

Evaluation of Reserves for the World’s Largest Energy Company, Gazprom

In recent years, sweeping changes have occurred in the Russian government and economy. Companies that were once owned by the government have been privatized. During this process, Gazprom, was formed and it turned to D&M to provide an independent appraisal of reserves and assist with a stock listing. Gazprom and D&M have established an annual schedule for appraisals of the Gazprom properties.

Reserves Evaluation and Appraisal for PetroChina Company Ltd.

D&M has performed reserves and valuation studies for more than 400 oil and gas fields in China for PetroChina, the publicly-traded portion of China National Petroleum Corporation, the largest Chinese government oil and gas company. These massive studies include virtually every productive petroleum basin in China and were used for the initial SEC filing for one of the world’s largest oil and gas companies. The firm continues to perform annual updates of all these reserves.