Typically our work focuses on the production profiles and reserves proposed by the lead bank CPR that underpins the terms of the debt financing. We are familiar with the work of many common names in this sector including DeGolyer and Macnaughton, Ryder Scott, Scott Pickford and Gaffney Kline and Associates. We also utilize this knowledge in certain evaluations for our equity clients. We will compare the data in the CPR to other third party sources and in some cases, add more flesh to geological descriptions and sub surface analysis. This work basically boils down to a plain English translation of the CPR.
We will comment on the use of reserve categories for the individual lending situation to discuss which reserve scenario (proven or proven plus probable) is appropriate. We will also ensure that all the data proposed in the CPR is directly translated into the banking model distributed by the lead bank. We are also able to offer a high level model audit of the banking model to test for rigor and consistency of functionality.
We have worked on many of the London main listed company debt facilities such as Cairn, Tullow, Oilexco and Venture Production to name but a few. This experience has allowed us to develop a sense for the way in which different London based lead banks present information and manage projects and we believe this has allowed our clients to best manage the expectations of their own credit committees in respect to the treatment of uncertainty and the timing of presentation material. (case study)