Upstream: Transactional Advisory/Support: System Conversion - Excalibur to OGsys
The Company is a privately held oil and gas company with exploration and production (E&P) operations focused on offshore Gulf of Mexico (GoM). The Company operates in the Outer Continental Shelf (OCS) and shallow waters off the coast of Louisiana. The Company closed an approximately $322 million acquisition in October 2018. The acquisition nearly doubled the Company’s production in the GoM, increasing the number of operated wells from about 200 wells to over 600 wells.
In May 2019, the Company engaged Opportune to complete a conversion of the acquired company’s master data and transaction history from Excalibur to OGsys, the back-office accounting and land application used by the Company. The master data included the conversion of cost centers, cost center allocations, approval for expenditures (AFEs), business associates, joint interest billing (JIB) decks and revenue decks. The Opportune team assisted the Company with mapping data from Excalibur to OGsys, including mapping product codes and AFE types. Following the completion of the master data conversion, the accounts payable and suspense subledgers were also converted and uploaded. Finally, nearly two years of general ledger (GL) transactions were converted and uploaded into OGsys.
An additional element to the project centered around converting allocation methods as the Company and the acquired entity utilized different approaches. As a result, the Company opted not to utilize the allocations from Excalibur. The Opportune team recommended setting up the allocations based upon data from the Company’s production system. For the remainder of the conversion, the Opportune team extracted the data from a SQL database and populated templates for upload. Opportune professionals worked with the Company to test and verify data prior to upload into the live environment. While testing the historical data, Opportune professionals encountered issues, including missing vouchers and incomplete allocations. The Opportune team worked with the Company, recommending solutions and ultimately solving these issues.
Specifically, Opportune professionals added value by:
- Extracting master data and transaction history from an SQL database
- Implementing a smart numbering system for the cost centers
- Checking for duplicates of business associates and wells
- Confirming status that AFEs were current
- Validating the historical GL transactions on a month-by-month basis
- Coordinating efforts with the Company throughout the conversion
- Successfully integrating the acquired company’s master data and transaction history into OGsys
Our expertise in the energy industry sets us apart from the competition. We are well-versed in technology systems used in the energy sector, including, but not limited to, Excalibur, OGsys, BOLO and Quorum. Whether our clients are seeking to upgrade an existing technology system or employ a new system, our energy professionals possess unrivaled knowledge and expertise required to provide clients with recommendations and strategic support for a seamless transition. For more information, CLICK HERE.