Case Studies

Analysis of Oil and Gas Lease Assets

Provided analysis showing reasonable certainty that financing regarding the development of a collection of shallow water Gulf of Mexico oil and gas lease assets could be obtained. The lease assets were evaluated as to having 85 BCF of high Probable Reserves with an associated estimated capital development cost of $169 million. Determined, with reasonable certainty, that the likely future rates of returns expected from developing such lease properties consistently exceeded the typical investor hurdle rate in a variety of forward price scenarios. Validated and replicated the economic and financial analysis and methodology of other third party analysts of the financial valuation regarding development of these lease properties. Work performed included analyzing comparable acquisitions and investments proximate to the initial funding of the lease asset development and at later times contemporaneous with delivering testimony.

Analysis of Multi-Year, Fixed Price Gas Sales Contract

Accumyn’s expert analyzed the existing evidence concerning the alleged agreement between a non-profit hospital system and a retail affiliate of a natural gas utility company, comparing the execution of the alleged agreement to standard industry practices.   In its haste to lock-in a two-year fixed price natural gas contract with the hospital system, the retail affiliate neglected to send out a written confirmation of the alleged sale in a timely manner and in accordance with industry standards. A written contract was sent to the hospital system two months after the alleged agreement took place and the retail affiliate began billing the hospital system at the inflated two-year fixed price.   Had the affiliate sent the confirmation within the prescribed window, it would have allowed the hospital system to dispute the confirmation or begin action to mitigate possible damages to either party. Moreover, the natural gas buyer did not actively accept or agree to the proposal offered by the affiliate. In addition to opining on commercial standards regarding natural gas transactions, Accumyn’s expert also critiqued the opposing expert’ damage calculations and provided alternative estimation of damages based on natural gas forward price curves.

Economic Benefits to Offshore Hydrocarbon Production Facility

Accumyn’s expert provided deposition testimony on the economic benefits to the owners of an offshore production facility pursuant to the False Claims Act, 31 U.S.C. § 3729(a)(1) and to an incident of noncompliance determined by the Bureau of Ocean Energy Management, Regulation and Enforcement.

Accumyn’s team analyzed historical production of hydrocarbons reported to the government for royalty purposes; historical costs of lease payments, royalty production payments, and capital additions; annual volumes summarized by resource and reserve category; and the operator’s standardized measure of discounted future net cash flows relating to proven oil and gas reserves.