Oil & Gas E&P Asset Acquisition – Buy-Side Environmental Due Diligence

Buy-side environmental due diligence for an upstream Oil & Gas portfolio consisting of more than 1,600 production facilities.

An International Investment Management Organization needed Transactional Advisory and technical environmental support for a competitive bid process to acquire more than 51,000 acres of Denver Julesburg (DJ) Basin Upstream Oil and Gas assets. The target assets included more than 1,600 wells and ancillary production operation facilities that required thorough evaluation for significant environmental issues and related potential compliance and/or production constraints. The client’s goal was to assure individual site inspection and operational condition assessment of all the target facilities. This extensive due diligence and liability assessment had to be completed within 30 days of binding offer and closing.

TRC provided a team of seasoned technical E&P subject matter experts (Air/Waste/Water/Remediation/Compliance/NEPA etc.) to implement an asset-wide evaluation program that included:

• Site inspector teams equipped with TRC proprietary mobile technology/data collection systems
• Creation of a GeoDatabase/webmap catalogue of over1,600 high priority production wells/facilities
• A management database that delineated baseline conditions for each site

Benefits Included:

Accessible, Interactive Webmap & Database: TRC developed a comprehensive Asset webmap and database cataloguing all site conditions for the entire operating asset that included: site-specific GPS-mapped locations; a detailed inspection report for each production site; more than 9,400 photos; a list of regulatory permit registrations; and a compliance matrix to ensure regulatory compliance upon asset transitioning. Post-closing, the Client will be able to continue to use and access this database in real time for operational support.

Risk Qualification/Quantification: TRC’s assessment included a detailed risk quantification, estimating the cost range to address individual known and potential environmental risks. TRC also completed an environmental Social Governance Assessment of the asset operations for the Risk Compliance Group of the Client’s Oversight Investment Board.

The Deal Closed: Client was able to timely evaluate, identify, quantify and negotiate deal terms related to identified material environmental defects, leading to the successful $900Million acquisition.

Client

International Investment Management Organization

Project Location

Colorado