Evaluating Properties or Prospects for Sale or Purchase

This presentation is from the 2025 Annual Meeting.

Learn the foundation of how oil and gas prospects are valued by industry experts and how you can apply that same knowledge to transactions of all sizes. We will cover the best practices set by the SEC for valuation of publicly traded companies, how that methodology can be scaled down, and what key inputs are needed along the way. The result will be a "Good, Better, Best" solution for determining market value of any asset, with guidance on when ballpark "rules of thumb" are accurate and useful (and when they are not) and when and how to use more sophisticated Discounted Cash Flow economics.

Objective: The formal method for evaluating oil and gas reserves value, as used by engineers for reporting to the SEC, The three most commonly used "Rules of thumb" that are useful for approximating value and when to use them, How risk is applied to future royalty timing through a Risk Adjusted Discount Rate, How risk is applied to ultimate recoverable oil & gas through Reserves Adjustment Factors