Oil Acquisitions & Divestitures

There are risks involved in all oil and gas investments. The key is to understand these risks and make decisions accordingly. 

Improve the Return on Investment and Rate of Return from Oil and Gas Properties and Working interests of Clients

Geology and Engineering

The science involved in extracting hydrocarbons is the first step to investing in oil and gas.  The geological science of a site provides the foundation for all further evaluations. Legacy Oil starts by looking at the reservoir's rocks and sediment structure to determine if all the right mechanisms are in place for a productive site.  Knowledge of the specific geology, larger basin setting and regional changes determine whether hydrocarbons exist in a particular area.  This also tells us whether they can be produced economically.

If the geological requirements are all in place, reservoir engineers will begin evaluating data that is a formation model to create a Type Curve.  They will interpret historical performance of nearby wells, depositional environment, phase windows (Oil, NGL, Gas), and reservoir characteristics that may effect production.  At Legacy, our geoscientists and engineers use modeling and imaging programs to locate and evaluate existing and new reserves.  Based on these images and their experience with fluid mechanics and geology, the engineer will determine the amount of oil and gas in the reservoir and the recoverable hydrocarbons.  

The next step is to send out an experienced Landman to investigate the properties mineral rights.  A Landman will start with title and lease research and title curative, identifying any discrepancies in the title and bringing these to a resolution.

The Legacy Oil team will then begin developing the scope of work.

Oil Risk Analysis


Oil Field Project Economics & Risk Analysis

Using the created geomodel and reservoir capabilities, Legacy Oil will then delve into the economics of an investment.  We begin to calculate a production forecast based on the amount of oil and gas in the reservoir and the production capabilities of the existing wells and potential future wells.  Then determine the amount of capital needed to attain that production, keeping in mind extraction costs, machine efficiency, fluctuations in the price of oil and profit comparisons. 

Our economic evaluation includes analysis of net present value, the internal rate of return, the payback period, and return on investment.  These factors will determine whether or not this is a profitable venture with upside in a new drilling program..
 

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Geology & Engineering Services Used for A&D

  • Data Acquisition & Management
  • Well Log Interpretation
  • Core Analysis
  • Subsurface Mapping
  • Geomodeling
  • Seismic Interpretation
  • Reserve Estimation
  • Production Forecasting
  • Decline Curve Analysis
  • Enhanced Oil Recovery
  • Field Development
  • Petrophysics