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Upstream: Reserve Engineering & Geosciences: Undisclosed: Asset Review & Technical Evaluation

A global investment management corporation based in New York engaged Ralph E. Davis Associates (RED) to conduct technical evaluations and asset reviews of an oil property located in the East Shetland Basin in the UK Northern North Sea. This property is a redevelopment of a prematurely decommissioned oil field, which produced in the 1990s.

RED engineers added value by answering questions posed by the investment committee of the client regarding key risks and mitigants for this project and assessed the technical innovations that were proposed in this field re-development and opined on the benefits of doing so. Additionally, the RED team reviewed data from analog fields in the North Sea and provided color and additional data points to the investment committee on the commercial aspects and oil recovery factors assumptions for this field.

RED’s scope of work was broken into three phases. The majority of Phase 1 work included reviewing and researching information for Competent Person’s Report, researching technical literature and other relevant technical papers on the history of the targeted property and reviewing associated costs and revenues and comparison to previous operator performance.

Phases II and III activities consisted of completing a deeper asset review and technical evaluation, including, but not limited to: reviewing well database and operational histories of wells in this field; performing a deeper review of the Lease Operating Statements (“LOSs”) and reviewing well tests, well logs and liabilities associated with abandonment, among others.

Established in 1924, RED is one of the most respected international independent petroleum engineering firms. RED performs petroleum engineering and geological studies, independently certifies reserve reports and prepares financial analyses and technical evaluations for use in litigation or regulatory hearings. For more information about RED’s services and capabilities, CLICK HERE.

Steve Hendrickson

PresidentRalph E. Davis Associates