D603 Fundamentals of Oil and Gas Property Acquisition and Finance

Course Facts

Course Code:
D603
Duration:
3 days
Type:
Virtual Classroom
CEU:
2.4 Continuing Education Units
PDH:
24 Professional Development Hours
Certificate:
Certificate Issued Upon Completion

Summary

This course is designed for industry professionals requiring an understanding of the unique aspects of oil and gas property transactions. The course will focus on the skills required in evaluation (both buy-side and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity. It will include a real-world acquisition case which will examine undeveloped reserves, pipeline facilities, and competitive bidding. Participants will gain an appreciation for the unique and specialized aspects of energy transactions as well as the nuances of forecasting product price, cost, and capital availability for successful business development.

Duration and Training Method

This Distance Learning course will be scheduled as a series of three-hour long webinars over a two-week period (equivalent to a three-day classroom course), comprising a mixture of lectures, discussions, and working examples.

Participants will learn to:

  1. Describe the unique aspects of oil and gas acquisitions.
  2. Evaluate an asset financially.
  3. Analyze the need for due diligence.
  4. Determine reserves.
  5. Describe acquisition finance.
  6. Apply competitive bid theory.
  7. Generate necessary economic valuations.
  8. Examine joint venture structures.
  9. Generate cash flow analyses.
  10. Understand the difference between value and price.
  11. Assess the rationale for choosing a particular acquisition with regard to selection process with several alternatives.

Topics Covered

  • Introduction to Oil and Gas Transactions
  • Review of Cash Flow Analysis
  • Unique Aspects of Oil/Gas Acquisitions
  • Reserves and Cost Forecasting
  • Pipeline Operation
  • Environmental Considerations in Acquisition
  • Structured Finance and Hedge Strategies
  • Competitive Bid Theory
  • Project Capital Scheduling
  • Expected Value and Simulation of Forecasts
  • Management Presentation Preparation

SESSION ONE
1. Introduction to merger & acquisitions
2. Acquisition Rationale
3. Models
4. Reserve forecasting

SESSION TWO
1. Cash flow analysis
2. Acquisition finance
3. Case study 1

SESSION THREE
1. M&A process details
2. Product demand considerations
3. Cost forecasting
4. Oil price forecasting
5. Gas price forecasting
6. Acquisition exit strategy

SESSION FOUR
1. Due diligence
2. Capital sources
3. Reserve-based lending
4. Case study 2

SESSION FIVE
1. Hedging
2. Risk considerations
3. Environmental aspects of transactions
4. Purchase-sale agreement review

SESSION SIX
1. Project finance
2. Case study 3
3. Game theory
4. Bidding

Who should attend

This class is designed specifically for industry professionals with an interest in advancing their career by joining a buy-or-sell-side team on their own or their company‚Äôs behalf. The approach is entirely practical as opposed to academic, and relies on the instructor's 40+ years of experience in the aspect of corporate development.

Prerequisites and linking courses

Several years of oil / gas experience is recommended; those without any background will find the course challenging.

Related courses include N014 Petroleum Economics and Risk Analysis as well as N604 Introduction to Energy Hedging and Trading and N620 - Fundamentals of Petroleum Industry Economics.

Click on a name to learn more about the instructor

Gerald Henderson