Our client, a leading Nigerian midstream company was negotiating to acquire divested interests in producing and non-producing oil and gas assets in onshore Nigeria
Westwood was assigned to prepare a CPR, assessing the resources and reserves of 2 producing fields and 3 discoveries in OML 26, the Ofa Marginal Field (OML 30), the Aje discovery (OML113) and the undrilled offshore OPL310
Westwood’s Approach & Analysis
Extensive data gathering with our client to develop a consistent database of reserves and production data
Quality control of available data and identification of potential for reserves growth
Prepared independent reserve and resource estimates and production profiles
Review of historic CAPEX and OPEX and preparation of future forecasts
Review of critical technical and operational risk factors to delivery
Prepared a CPR summarising all the findings from the above tasks
The Outcome & Benefit
As with many Nigerian projects, the database was inconsistent and incomplete and Westwood put considerable effort into reconciling the available data
Westwood delivered robust low, mid and high case reserve estimates and production forecasts, that helped the client to improve its assessment of the acquisition opportunity
Westwood’s production forecasts proved to be accurate and we were asked by our client to update the CPR 12 months later (based on further production data), which led to an upward revision of the 2P reserves estimates
