Evaluating acquisitions

Upside and downside. Isn't that what you're looking for when you evaluate an acquisition target?

After he consummated the purchase, one operator searched for the property's applications in AppIntel. He found development plans to double the number of wells with horizontal locations picked, pressures discussed and incremental recovery factor already proposed. None of this upside information was in the data room.

You can see his plans and mapping by downloading his application within moments from our self serve portal.

Get his application in moments by ordering it from AppIntel. You can get applications from AppIntel in moments and not in days or weeks.

Where's the upside?

If you can find, ratify and present new found upside, you can become MVP of the company.

Often operators who have owned a property in the past have seen upside and disclosed it in their applications to the regulator. One quick look at the applications for the property may give you hints about upside yet to be unlocked -- just like the operator above found.

How do you find the rest of the story?

You're all excited about your new acquisition. But after you buy, you find out the regulator has this property in its sights. Noncompliance notices turn your favorite sunny acquisition into a nightmare.

Before you finalize your deal, use AppIntel to conduct your due diligence for compliance problems. AppIntel can help you quickly find noncompliance issues. Each noncompliance issue requires an application to fix it. These applications have details of the noncompliance and steps taken to mitigate. It also contains information on promises made to the AER to fix the issue. Promises that you'll be expected to keep after you're acquired the property.

And through AppIntel, you get application documents on demand. If you order them from the AER, you could end up waiting 28 days for them.

Imagine waiting a month to decide if an acquisition candidate is worthwhile. In most cases, waiting a month makes the information worthless. The cost of waiting is huge.

What value would it add to your acquisition if you always had a handle on all the upside (and downside)?

History? Or just production history?

Reviewing historic applications on your acquisition target can give you clues about what works well and which strategies are disasters.

The history of floods can often be told by the applications submitted to the regulator.

Applications broadcast the pessimism (or optimism) of an operator. They indicate the operator's short and long term plans.

Applications are an exposé of practical technology use. They show how technology works out in the field. They indicate success and failure of each type of technology. They even offer ways to conduct look-back analysis on technology installations.

Cheapest, fastest, best

AppIntel costs less than a quarter of one person's salary. For the same price of a team of six man data-mining department, you could supply all your flood engineers with AppIntel.

AppIntel's search functions are quicker than made-in-house searches. And AppIntel's collection of historic applications is larger than any in-house collection we've seen.

AppIntel has area alerts that allow you to see new applications as soon as they are submitted.

AppIntel doesn't take sick days or vacations and it works on weekends. It doesn't miss applications or documents -- it's contents are triple checked for accuracy. And it adds search by UWI for applications that don't even have a UWI.

Tags: Flood, Exploration, Acquisitions

Granger Low   21 Nov 2016

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