How We Can Help
Dutcher & Company provides cost savings by giving property owners a trusted partner to manage and develop their properties. In a low-price environment, owners of oil and gas resources can significantly improve their cash flow by outsourcing property management rather than maintaining their own staff, facilities and associated overhead. Dutcher & Company can partner with its operating affiliate in order to take over operations, leaving the property owner without the burdens of maintaining an oil and gas operating property.
This can be an attractive solution for property owners that want to downscale their cash commitment to the oil and gas industry, to entities working out oil and gas properties that are under financial duress, and to investors seeking exposure to oil and gas without wishing to establish their own operating subsidiary.
Depending on the client's objective and the nature of the assets, fees for property management can be structured as a percentage of net profits, which allows the owner the comfort that we are working towards the same goals of maximizing the cash flow from the property set.
IMPROVE OR RE-ESTABLISH PRODUCTION FROM EXISTING WELLS
Existing wells that have unrealized potential for production can go from being a drain on cash flow to add to cash flow and collateral value. Dutcher and Company can evaluate and execute all aspects of current operations to determine steps that can be taken to either improve or re-establish production and reduce recurring operating costs from all existing wells, active and inactive. In this role, Dutcher and Company will provide all evaluation, recommendation and execution services for on-site and back office support needed to improve both production and operating cost profiles.
Often, the assets that end up being sold on the market are assets that are not part of an owner's core business, and as such might have been neglected for some time. Selling neglected assets presents a risk of leaving money on the table, as a buyer will not see the asset's potential. Improvement of cash flow benefits both owners with an ongoing business and potential sellers, who might want to improve their assets before listing them on the market.
MAINTAIN MAXIMUM CASH FLOW POSITIONS FOR ALL PROPERTIES UNDER MANAGEMENT
Dutcher and Company will continually monitor operations for equipment needs and cost improvements while considering upside potential options and their optimum scheduling. This means an ongoing attention to measures that can improve cash flow, both in terms of the management of producing assets, scheduling of improvement of those assets depending on the owner's cash flow and investment strategies, and weighing of the allocation of cash flow and investments between short- and long-term investments. Dutcher and Company's engineering, geological, land and accounting staff will provide daily supervision of all aspects of field operations, as well as front and back offices. We can also represent other companies versus business and financial partners. When recommendations for improving any of the many aspects of a producing or non-producing property is recommended, our client has full control over whether we perform the recommended action and to what extent. This can include lease evaluation, drilling new wells, recomplete existing wellbores, change existing producing equipment or facilities, reconfigure operational charges, etc.
Dutcher and Company can provide all or parts of these services, from periodic evaluation of properties to the full management and ongoing development of the properties.
DETERMINE ASSET WORTH
Dutcher and Company can provide the reservoir engineering and lease valuation in order to determine the worth of an asset, either before or after we have been through a process of maximizing production. This valuation is completed using accepted industry standard methods, and we have a long track record of successfully interacting with the engineering departments of potential lenders and financing companies in order to provide the financier with reliable and solid information that establishes trust between the lender and the financing company. In addition to a valuation of producing properties and leases, we can provide a valuation of development programs and specific programs to realize upside. This worth determination can then be used by our clients to consider future disposition of the asset. If the client decides to continue contract operations, these worth determinations can be made at regularly accepted intervals for real-time worth comparisons of past and anticipated operations, providing the client with updated information in order to make sell, hold, or develop decisions.
EVALUATE AND FORECAST POTENTIAL UNDEVELOPED UPSIDE FOR ALL RESERVE CLASSIFICATIONS (P1, P2 & P3) AND RESERVE TYPES (PRODUCING OR NON-PRODUCING)
Dutcher and Company can determine the lease position and worth of the contract properties and recommend either addition or contraction of the contract leasehold. We provide engineering and geological evaluation of the contracted acreage position to determine the potential upside worth that could be assigned or developed on the acres held.
In such a process, we provide all land, engineering, geological and accounting services necessary to determine the properties undeveloped potential. This can be followed by the development of a detailed drilling/exploitation program for the use of the client or the client to market to potential partners in the industry or the financial sector.
Valuation of properties and the development of drilling/exploitation programs are typically billed at an hourly rate, as a free standing project or as part of an ongoing property management contract.
PREPARE SALES PACKAGE
Once the decision has been made by our client to dispose of all or part of the contract properties, using our current worth determination, we will prepare a property sales package. We will also compile all necessary information to be included in a “data room”. This package and the information compiled would be for the purpose of selling the assets selected.
We believe the best value determination is made by first understanding the properties & their operations and then preparing a package containing the assets that make the most sense to divest.
Our deliverable under such a project is typically a complete sales package with necessary documentation, using accepted industry standard methods, for either all or part of the assets under contract. This package will include a current worth determination. The scope of this service is subject to numerous variables, including the existence and condition/extent of title opinions, well files, historical operating statements, geophysical data, reserve engineering, etc.
Dutcher and Company can provide specialized services, such as engineering consulting, geological consulting, accounting advice, back-office services, field supervision, and individual well optimization.