Oil & Gas Acquisition Due Diligence
Due diligence is the process of investigating acquisition assets to make an informed decision about the cost, benefits and risks of acquiring such assets. Tracker Services has handled over $15 billion in Acquisition & Divestiture (A&D) transactions. These transactions vary in size from single wells to acquisitions involving thousands of producing wells across the United States, with clients such as major E&P companies, non-operators, international clients, and private equity groups.
Tracker is the industry leader in assessing producing and undeveloped properties. We work closely with our client’s attorneys and lending partners to help them navigate the risks inherent with their purchase. As a professional land services company we are very proficient at abstracting titles, title opinion analysis and researching regulatory agency files. This experience includes expertise in researching all phases of lease records and division order files, as well as reviewing production histories and contracts related to the property.
In a property acquisition, the purpose and scope of a due diligence project can be a moving target. Cost considerations and time must be balanced against quantifiable risk (including escalating regulatory and compliance requirements). We provide clients with the capability of reviewing, analyzing and estimating costs for the due diligence process in the early evaluation stage of an acquisition. We then can define the best process for the inquiry.
Tracker provides high-level summaries as well as detailed defect notice reports that include variances found, the applicable defect category, and detailed findings to substantiate the variance. Our reporting is fully customizable according to our client’s needs and the terms of their purchase and sale agreement.
Tracker provides reporting on our client’s assets as we evaluate them, which puts our clients in a position to begin managing their assets the moment the transaction closes. As part of our reporting process we can analyze the health of our client’s assets by reviewing and reporting on production volumes holding acreage and by quantifying the type of defects found in terms of their potential affect on the client’s bottom line, to name a few.
Tracker will work around the clock to make sure our client’s transaction closes on schedule. We work with their counsel to prepare defect notices, cure items provided by the seller, and prepare assignments and other closing documents, as needed. Tracker is often asked to be present at a closing to address any last minute items and consult with our clients on best practices. Once the transaction is closed, we record transaction assignments and help our clients transition their assets.
Once the transaction closes, Tracker helps transition the business operations to our client’s preferred data management software, and inventory all assets. We digitize paper files, set up well, lease, and unit files, and offer guidance on selecting and building applications tailored to our client’s needs. We can also serve as an intermediary or long-term land department, providing support as our clients grow and transition.
After partnering with Tracker throughout a transaction, our clients often retain us to continue to help support their land department with asset management services. We also provide leasehold maintenance, monitoring and reporting on assets, and mapping in conjunction with the above services.