N603 Fundamentals of Oil and Gas Property Acquisition and Finance

Event Facts

Date:
30 Sep. - 2 Oct. 2020
Event Code:
T603a20CA
Duration:
3 days
Instructors
Gerald Henderson
Location:
Calgary
Booking Status:
Good Availability
Fee:
CAD $2,450 (Exclusive of tax)
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Course Facts

Course Code:
N603
Duration:
3 days
Type:
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 ia a three-day course comprising lectures, case studies and a team-based acquisition exercise in which participants will analyze the transaction, competitively bid to acquire the property, arrange financing, and plan to exploit the property post-closing. The exercise considers both an asset and corporate shares acquisition with pre- and after-tax cash flow analysis. Spreadsheet modeling and risk simulation of the transaction are included.

Participants are required to bring a laptop loaded with Microsoft Excel to the course.

Participants will earn 2.4 CEUs (Continuing Education Credits) or 24 PDHs (Professional Development Hours).

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 structured finance.
  6. Apply competitive bid theory.
  7. Generate basic economic valuations.
  8. Examine joint venture structures.
  9. Generate simple 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

 Course Agenda

  Day One

  1. Introduction to merger & acquisitions
  2. Models
  3. Reserve forecasting
  4. Cash flow analysis
  5. Acquisition finance
  6. Case study 1

  Day Two

  1. M&A process details
  2. Oil price forecasting
  3. Gas price forecasting
  4. Oil transportation
  5. Due diligence
  6. Capital sources
  7. Reserve-based lending
  8. Case study 2

  Day Three

  1. Hedging
  2. Risk considerations
  3. Environmental aspects of transactions
  4. Purchase-sale agreement review
  5. Project finance
  6. Case study 3
  7. Game theory
  8. 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.

Gerald Henderson

Background
Gerald Henderson, a petroleum reservoir engineer, is a global energy executive, trusted advisor to corporate management and boards, educator, energy expert for law firms, trustees in bankruptcy proceedings, and judges.  He is an advisor and principal in numerous merger, acquisition, divestures and public and private financings.  He has created and managed exploration and production companies, special-purpose project companies, and consulting organizations.  He advises on asset valuation and exit strategies.  He has a deep understanding of the world-wide oil and gas value chain from land acquisition and exploration through power distribution and energy marketing in many forms.  He brings a keen awareness of the geopolitical, economic, commercial, operational and technical risks, as well as hands-on experience advising many companies representing multi-billion-dollar capital investments.

Mr. Henderson started his professional career with the Atlantic Refining Company.  His family was involved with the pipeline business and he worked as roustabout, roughneck, and geophysical recorder in the oil fields while completing his undergraduate and graduate education.  He has attended numerous post graduate courses in managerial sciences, operations research, and advanced mathematics.  His publications are in computer application to reservoir management, reserve optimization and the business aspects of the industry.

As an avocation, Mr. Henderson teaches and facilitates adult education short courses in American Literature for the Oshner Institute in association with the University of Denver.

Affiliations and Accreditation
MS Missouri University of Science and Technology
BS Missouri University of Science and Technology

Courses Taught
N603 - Fundamentals of Oil and Gas Property Acquisition and Finance
N620 - Fundamentals of Petroleum Industry Economics
N819 - Working within Joint Venture Partnerships

Alternative Dates for this Course

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Houston

Date:
11 - 13 Mar. 2020
Event Code:
N603a20NA
Fee:
USD $3,100 (Exclusive of tax)
*Seats are currently available for NTA members only - PAYG clients will be advised as seats become available, based on the order they applied to the waitlist.
Excellent course reviewing all critical components of A&D supplemented with many examples from industry. Instructor provided a wealth of information through his many years working on both sides of transactions. Would strongly recommend this course to anyone in a business development group/function regardless of discipline.