Transaction Support
Our approach to business development strategy and origination maintains optionality for our clients throughout a transaction.
We believe optionality is important as transactions in the upstream oil & gas industry tend to be involved, complex and drawn out. We can manage transactions on behalf of our clients, provide advice as they work through the process, or produce specific deliverables as they require. Typical products include:
Valuation
Glenloch Energy undertakes valuation of oil and gas assets. Our valuation approach employs scenarios designed to reflect the risks and opportunities specific to the transaction. In addition to providing an overall value for the asset, we can provide calculations of cashflow and return to counterparties and model cashflow to investors for a given transaction structure. We can also roll asset transactions up to the corporate level to assess the impact on balance sheet, income statement and statement of cash flows.
Negotiation
We support our clients throughout negotiation of the transaction, through direct negotiation, active facilitation or in a supporting role. We have experience in the negotiation of the following domestic US and international agreements:
- Letter of Intent/Memorandum of Understanding
- Farmout Agreements
- Joint Venture Agreements
- Purchase and Sale Agreements
- Offtake Agreements
- Gathering and Transportation Agreements
- Time Charters
As negotiations are complex, establishing and maintaining a flexible negotiation strategy, based on a clear understanding of the asset and alternatives, is a pre-requisite for success. Our team has experience in managing international joint ventures and can assist in structuring these agreements that are workable for all sides.
Due Diligence
Glenloch Energy performs technical and commercial due diligence on behalf of our clients, providing a basis for detailed economic evaluation of the asset under a representative range of scenarios. This evaluation informs deal value and structure and identifies what must be mitigated through negotiation.
Glenloch Energy can also provide assist through the preparation of Competent Persons Reports, the creation of a roadmap for regulatory approvals and structuring and clearing conditions precedent.
Our approach is flexible and designed to adapt to our client’s situation and requirements. Our team consists of industry professionals, all of whom have managed assets as well as transacting in them, and it is the delivery of long term value as an advisor that remains our focus throughout each engagement.
Explore Our Services
Strategy
We approach strategy through a scenario driven assessment of the client’s current portfolio, organizational competencies, and financial framework. The strategy defines portfolio actions and coveted asset attributes.
Origination
Deal origination consists of identifying coveted assets, assets with attributes consistent with the client’s strategy, and qualified buyers. We advocate a proactive approach to business development and will undertake outreach on our client’s behalf.
Services
Oil and gas is an extractive industry, participants must continuously find and develop new oil and gas fields as existing fields decline, making business development a continuous process.
