As commodity prices continue to stabilize, oil & gas property deals are on the rise. Approximately 2,000 energy assets are on the market according to an Ernst and Young estimate with property acquisitions expected to increase sharply in Q4 2016.
The increase in oil & gas property deals intersects with another trend in the oilfield. The industry has seen an explosion of well data, most of which is unstructured data and documents. Asset data is vital to the acquisition and divestiture (A&D) process, yet the large volume of well information poses a challenge. Coupled with an increasingly active A&D market, a perfect storm is on the horizon that threatens to delay acquisitions, impact production, and disrupt cash flow.
Efficient access to asset information is key during and after an acquisition. Buyers looking to acquire an asset must carefully evaluate a property or well’s potential in order to make an informed buying decision, yet all too often this data is poorly organized and difficult for buyers to access. As a result, decisions can be delayed or based on incomplete data.
Effective data management is also vital after a sale is made to ensure a smooth transfer of assets and well information from one company to another. In many cases, transferring ownership entails transferring data and historical information on producing wells. Accurate and up-to-date well data is crucial during the transition to avoid the financial impact of well downtime and lost production.
All too often, buyers are burdened with understanding the large volume of unstructured data and documents they receive from a seller. Well information can arrive in multiple forms, boxes of physical files, and disk drives with thousands of poorly organized electronic documents. Engineers, geologists, land and regulatory professionals spend hours trying to find reliable data in order to clearly understand historical asset performance, processes, and strategies used by the previous operator. This manual and inefficient process restricts the amount of time that staff can spend monitoring and optimizing well performance. As a result, production may be lost from newly acquired wells, impacting cash flow and the bottom line.
Archeio streamlines the data onboarding process for operators when an acquisition takes place. The company’s cloud-based well file software and document classification technology intelligently stores well data, giving buyers and sellers centralized access to organized information on-demand from any device.
Archeio’s intelligent well file software eliminates the need to market properties using costly data room services, maintains well data in a common and persistent form, reduces acquisition cycle time, and minimizes well downtime. And because Archeio provides a common environment to store and share data during an acquisition, well information is instantly available to the buyer after a property sale.