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Why you need to incorporate ARO into your A&D analysis: An LLR vs ARO Case Study Presentation

January 15, 2018 4:49 AM
XI Technologies

XI Technologies invites Business Development, Finance, and Risk Management professionals working in the Alberta oil and gas sector to attend a free case study presentation outlining the key differences between the two most common methods of estimating the retirement liabilities of an asset during the M&A process.

While capital markets appear to be loosening slightly in 2018, investors are keenly aware of the growing importance of Liability Management and will be insisting on a clear, reliable estimate of asset retirement obligations (ARO) as part of due diligence on merger and A&D transactions. Currently, most E&P companies rely on the deemed liability values within Alberta’s Licensee Liability Rating (LLR) program to estimate asset retirement costs. This can be misleading because LLR does not currently include all liabilities, and those that are included may not be truly representative of real-world costs.

The purpose of this presentation is to raise awareness of the pitfalls of LLR and demonstrate why and how producers, capital providers, and non-op partners should seek a more complete and realistic picture of the long-term retirement obligations associated with any given asset or transaction.

Using real-world data and analysis derived from XI’s AssetBook, this case study presentation will illustrate the potential financial risks of estimating asset retirement costs based solely on LLR.

Space is Limited – Reserve Your Seat Now

WHEN: Wednesday, January 31st –8:45am to 10:30am    REGISTER HERE

WHERE: XI Technologies Training Centre (Suite 1700, 734 – 7th Avenue SW)

For any questions regarding this session or for more information, please email us or call 403.296.0964.

About XI Technologies
XI Technologies helps clients effectively interpret data to make the best decisions possible. XI provides essential data and software tools for A&D research, well planning, drilling optimization, and regulatory compliance programs in Western Canada.

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