This evaluation quantified the valuation potential of an African oil holdings by benchmarking global M&A transaction data for oil sands and other development-stage fields. ADI analyzed the economic trade-offs between as-is asset sales and value-added farm-out scenarios involving significant drilling investments over a three-year horizon. The findings addressed infrastructure limitations and contingent resource uncertainty within the context of African regional risk premiums.
The client
Private equity firm
The situation
A need to establish defensible valuation estimates for contingent resources to support shareholder investment or farm-out decisions.
ADI’s contributions
Peer transaction benchmarking
Screening of over 1,100 global oil and gas transactions provided a robust dataset of comparable regional and asset-class deals.
Farm-out scenario modeling
Analysis of equity distribution between current shareholders and new investors established clear valuation implications for funding.
Resource-based economics
Commercial valuation included a contingent resource estimate with regional price-per-BOE benchmarks.
Regional risk assessment
Comparisons between African development-stage fields and Canadian oil sands identified appropriate valuation ranges for the asset type.
Key outcomes
- Factual basis for negotiating farm-out equity splits and a clear prioritization of high-value acreage for initial drilling.
More insights
News
Newsletter: Gas prices, Permian bottlenecks, and midstream growth
In the November 2026 edition of the ADI Newsletter, ADI examines the implications of EQT’s acquisition of Range Resources and what the deal could mean for natural gas markets in Appalachia and at the Henry Hub. The newsletter also explores the growing role of oil and gas capabilities in supporting the energy transition, from geothermal […]
Article
Permian’s next bottleneck is basin connectivity
As ADI discussed recently in Trends shaping the U.S. midstream outlook, rising LNG exports, growing power demand from AI data centers, and continued oil and gas production growth are driving a new wave of midstream investment. Much of the industry’s recent focus has been on relieving Permian gas takeaway constraints through projects such as Kinder Morgan’s […]
Article
What EQT–Range means for gas prices
On October 26, 2026, EQT Corporation agreed to buy Range Resources, both Appalachian gas producers, in an all-stock deal valued at $13.84 billion. The combined company produces over 9 billion cubic feet of gas equivalent per day (Bcfe/d), the most of any U.S. gas producer. ADI Analytics’ analysis of how this might impact the outlook […]