The Assignment / Client’s Problem

  • 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
  • Companies’ assets overview, 2P reserves, strategy, recent developments, E&A results, team assessment
  • 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)