ADI Analytics supported an African oil and gas company in valuing its upstream assets and developing an informed investment strategy.
The client
An African oil and gas company evaluating upstream asset investment and development options.
The situation
The client needed valuation support and strategic guidance to assess its asset portfolio and determine a viable investment and development approach.
ADI’s contributions
Asset benchmarking
ADI Analytics benchmarked the client’s assets against comparable oil and gas transactions. The analysis focused on deals in Africa and Canada’s oil sands, specifically targeting assets at a similar stage of development.
Valuation
ADI estimated potential valuations for the assets based on comparable transactions. The analysis considered valuations for assets in their current state as well as after further development.
Strategic investment evaluation
ADI evaluated different strategic options for the client, including financing asset development through current shareholders or through a farm-out structure with new investors. The analysis assessed how these different approaches would affect the valuation and the resulting share of that value for the company’s current shareholders.
Key outcomes
- The analysis provided the client with the necessary information to create a solid asset investment and development strategy. This allowed them to understand the potential financial outcomes of different approaches to developing their assets.
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