Clearwater Group performs appraisals for oil and gas royalty interests, production operations, acreage and resources, for valuation and estate planning purposes. In addition to the production declines and production rates, the issue of environmental liability and well destruction are important to assess prior to the production purchase. Below is a general scope of work that might be performed during an oil and gas field evaluation:
TYPICAL SCOPE OF WORK
Develop a site history;
Develop a full inventory of all production, as well as royalty payments to others, based on the seller’s information and County or State records, as available.
Determine production decline curves based on operator records and field production averages;
Determine the general condition of the facilities and property by a site inspection;
Develop cost ranges for environmental liabilities, such as oil leakage near production equipment or pipelines, if present;
Determine cost ranges for well abandonment, if needed; and
Determine value of production based on 3 different valuation methods and prepare a report with the findings.
The Auger Group, Inc. dba Clearwater Group performs oil and gas lease appraisal, cost allocation studies, due diligence, and other evaluations. The firm was incorporated in California in 1990 with offices in Point Richmond, California and San Rafael, California.
Figure above,: By unknown US Government employee - U.S. EPA. Assessment of the Potential Impacts of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources (External Review Draft). U.S. Environmental Protection Agency, Washington, DC, EPA/600/R-15/047, 2015., Public Domain, https://commons.wikimedia.org/w/index.php?curid=40718645