TRC

Upstream Oil and Gas E&P Asset Acquisition

TRC provided buy-side due diligence and post-transaction operational support for a portfolio of >1,000 sites under strict deal deadlines, creating a comprehensive GeoDatabase to support operations post-closing.

Industries

Client

Independent Exploration and Production Company

Project Location

Texas

A newly formed independent Exploration and Production (E&P) Company located in South Texas, acquiring over $250M in strategic natural gas assets (1,100+ wells and ancillary facilities) needed to conduct thorough environmental due diligence and liability assessment as part of the pending transactional services support. The assessment had to be comprehensive; each site required physical inspection due to SPA restrictions. In addition, the work needed to be completed within 30 days to satisfy the underlying deal dynamics.

TRC developed an asset-wide due diligence program that involved a team of site inspectors equipped with iPads and proprietary data collection tools. The portfolio’s 1,100 sites all were inspected in one week.

TRC identified and defined those environmental risks defined to be material to the Company’s deal criteria. Post-closing, TRC is actively assisting the Company in the development and implementation of additional environmental Risk Management strategies (e.g., SPCC, NORM, DOT Pipeline Analyses, Air and Disposal Well Permitting) to ensure regulatory compliance upon commencement of post-acquisition operations.

Benefits Included:

Accessible, Interactive Database. TRC developed and provided the Company with a comprehensive electronic Asset GeoDatabase that included GPS-mapped data and information for each of the 1,100 sites, including more than 18,000 site photos, equipment inventories, and regulatory registrations. Post-closing, the Company continues to use and access the database in real-time.

The Deal Closed. As a result of TRC’s diligence efforts, the Company was able to timely evaluate and successfully complete the acquisition within the original 30-day contract period.

Improved Deal Terms. TRC’s environmental liability evaluation identified >$5M in potential liabilities that the Company was successful in mitigating as part of the final contract negotiation.

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