Historically, determining Asset Retirement Obligation (ARO)/Provision Estimates has been a nuisance, usually requiring petroleum companies to lean on people within their organizations that would be better served project managing end of life work. It required using industry experience to come up with average gross well abandonment, pipeline abandonment, and reclamation estimates for each area in which the company operates, vetting these estimates against actual work completed and multiplying them by net well counts. From there, auditors would question the logic and competency of the people providing the estimates, requiring companies to constantly work at building trust between themselves and the auditors.
- There was a solution available that provided detailed end of life cost estimates for each individual operated and non-operated well, pipeline and facility equal to that of completion engineers reviewing each and every wellfile and end of life project managers reviewing each wellsite?
- This system provided AFE ready end of life estimates quickly and accurately, no matter the size of the inventory, such that auditors immediately feel comfortable with the estimates?
- This system relied on normal unit rates (hourly rig rate, wireline rate, reclamation day rate, etc.) such that estimates could be tailored to your company?
- This system had been vetted and improved by industry since 2008 to the point where it covers every imaginable scenario?
- This system estimated abandonment dates of all wells, pipelines and facilities using pool decline rates and economic limits so that the end of life estimate can be discounted and inflated using the report itself without the need for additional software?
- This system constantly updated itself using government data and had a built-in comparison system to allow your company to quickly define ARO changes year to year or quarter to quarter?
- This system also specialized in assessing Acquisition and Divestiture (A&D) opportunities?
- This system was the industry leader at finding ways to improve your company’s LLR rating using only paperwork, thereby reducing the liability side of the equation?
Would this system be of interest to you? We thought so. Solstice Engineering Ltd. has painstakingly developed this system over the last 10 years and is quickly becoming the industry leader when it comes to third party independent ARO estimates, A&D Evaluations and LLR Evaluations. This innovative solution is unique to industry and the methods used to create the evaluation reports are without competition. Why continue to waste money on poor allocation of your workforce, or third party companies doing this work the old fashioned way, when the future of these evaluations is here now?
If you are interested in knowing what your company’s current liability actually is, if you are interested in truly understanding the impact of acquiring or divesting assets on your company’s liability, and if you are interested in optimizing your LLR to avoid posting security deposits, contact Solstice Engineering right now to find out how we can be of service.
- Oil and Gas Licensees
- A&D Specialists – Solstice estimates the LLR to determine the impact of an acquisition or divestiture and assist in specifying which assets should be included during negotiations.
- Financial Institutions
- Environmental Consultants
About Solstice Engineering Ltd.
Solstice Engineering Ltd. provides petroleum software solutions, acquisition and divestiture liability estimates, LLR evaluations, independent ARO estimates, and petroleum consulting services. SolComp, Solstice Engineering’s regulatory compliance management system, provides petroleum companies with the most complete and intuitive compliance software system available to industry.
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