Our client, Premier Oil was looking to acquire an E&P company operating in the UK with a proven track record, fair-sized exploration team, with high oil exploration portfolio exposure, and development and production assets
Westwood was assigned to select and value the respective asset portfolios of the agreed targeted companies
Westwood’s Approach & Analysis
Study based on Westwood’s proprietary UKCS fields, discoveries and prospects resources and reserves database
Selected list of companies based on the client’s commercial and strategic criterion – list then agreed
Valuations including production, near-term development, appraisal and exploration (Cash flow balance, EV, NPV10 Portfolio, EV/2P, EV/2P+2C, NPV10/2P+2C)
Strength, Weakness, Opportunities, and Threats (SWOT) analysis from the client’s perspective
Evaluation of prospective resources, average working interest and focus acreage’s fit with Premier Oil’s asset base and growth strategy
The Outcome & Benefit
Westwood provided company profile sheets including assets overview, economic valuations, rationale and SWOT analysis
Technical and economic ranking of target companies and provision of a restricted list of the best acquisition opportunities
Westwood identified Encore Oil plc as one of the best suited targets with an attractive asset portfolio. Premier Oil subsequently acquired Encore for US$318 million (net of working capital)
