Technical Due Diligence
Since 2014, we have helped clients across the WCSB, the US, and international basins assess the technical and economic merits of asset transactions and other investment opportunities. A detailed understanding of potential value and associated risk is essential to making smart business decisions.
Challenges we address
- One of the most critical parts of the overall due diligence process
- Verification of initial assumptions regarding transaction or investment value
- Detailed review of risks and items requiring attention before closing
- Clear insight into when to walk away from unnecessary risk
What is technical due diligence?
A detailed investigation of the technical and economic merits of a transaction or investment opportunity. A successful process does not guarantee a successful deal - it ensures high-quality, well-informed decisions that protect and drive corporate value.
Why it matters before closing
Sales materials often emphasize upside. Buyers and investors need a strong understanding of potential, the cost of unlocking that potential, and the risks attached. With more than 15 years of multi-disciplinary asset evaluation experience, our team provides timely assessment using cutting-edge techniques.
Closing timeline
Early insight into whether adequate due diligence is feasible before set closing timelines - so critical steps are not compressed out of the process.
Data and assumptions
Confirmation that required data is available in a usable format, and that assumptions are defendable and supported by data or directly related past experience.
Geotechnical and engineering review
Verification that critical modelling and interpretations can be reproduced; that historical injection and production volumes are properly allocated; that planned volumes are defendable with standard evaluation techniques (RTA, material balance, decline analysis, simulation); and that booked reserves are reasonable.
Economics
Assessment of whether risk and uncertainty are captured, capital and operating costs align with similar projects, cash flow is defendable given the technical review, and price sensitivities account for market changes on long-dated forecasts.
