Case Studies

Loss of Production Income for Wells in the Gulf of Mexico

Accumyn analyzed a Loss of Production Income (LOPI) claim against underwriters related to a shut-in of production from deep water offshore wells allegedly due to a hurricane in the Gulf of Mexico. The wells were in varying stages of production at the time of the hurricane so Accumyn had to determine the LOPI for each well, depending upon insurance policy provisions, factual circumstances, and stage of production.   Accumyn obtained information from third party sources, including the Minerals Management Service, regarding the dates each well was spud, total depth reached, and production achieved.   Accumyn also provided an economic analysis as to the commodity prices of oil and gas during the shut-in period as compared to later periods when there were record high prices.

Fraudulent Redemption of Ownership Interest

Provided expert analysis, reports and testimony, resulting in a judgment of over $300 million, in connection with the fraudulent redemption of an ownership interest in an independent oil and gas company, in which the company operator induced the other interests to redeem their ownership at below market value. Work performed included the analysis of the asset valuation that was the basis for the redemption, as well as analyzing comparable sales proximate to the redemption. Additional analysis included developing valuations for producing assets, undeveloped acreage, and various midstream assets at various timeframes under rapidly changing market conditions.

Disgorgement Damages of Equity Interest in Exploration and Production Company

Accumyn’s expert provided a report and deposition testimony regarding the value of amounts received as consideration for the redemption of equity interest of an independent exploration and production company operating in the Barnett Shale of North Texas. Accumyn critiqued the opposing market value opinion and prepared forensic accounting analysis to determine damages under recession and disgorgement theories.

Forensic Accounting of Profits Earned From Construction of Drilling Rigs

Accumyn assembled a team of engineers and forensic accountants to determine the profits earned by a sub-contractor from constructing two land-based drilling rigs for a Canadian exploration and production (“E&P”) company. The E&P company hired a contractor who sub-contracted the project to a land rig specialist. After more than $8 million was paid to the original contractor, the contractor ceased operating and entered chapter 7 bankruptcy. The sub-contractor said a delay in payments by the contractor had resulted in a price escalation and demanded almost $2 million in additional payments to complete the first rig. After the first rig was delivered, the sub-contractor terminated the agreement and sold the uncompleted second rig to a third party.

Accumyn’s technical engineering experts identified each major component of the rig construction and the related purchase orders and disbursements. Accumyn’s engineering and forensic accounting experts demonstrated that funds had been used to acquire parts and pay expenses for unrelated purposes, including other rig construction projects.

Breach of Contract Litigation

Provided expert testimony in deposition and during arbitration on a federal court case involving Breach of Contract litigation. Provided analysis on the revenue and marketing margins of gas processing and marketing agreements, forecasted production volumes and marketing margins though the end of the contracts, and delivered an expert opinion of the contract damages attributable to the breach of contract.