A low license liability rating can mean higher security deposits and fewer acquisition opportunities. We help improve your licence liability rating by evaluating for liability reduction opportunities and identifying your company’s strengths and weaknesses when it comes to your LLR.

“With commodity prices in decline, licensees have shut-in non-economic production and are curtailing new production. As a result, many licensees are starting to approach an LLR of 1.0, which puts them at risk of having to post significant security deposits. It also limits their ability to acquire or divest assets if the buyer or seller will be put in a position where the LLR will fall below 2.0, forcing them to post security deposits or to cancel the deal.” – Clint Nerbas, President of Solstice Engineering

These are the benefits our clients appreciate from using our LLR Evaluation services and corresponding report

LLR Predictor

  • Realistic projections of LLR trajectory
  • Adjustable industry netbacks
  • Estimation of potential LLR increases
  • Estimation of well production exponential decline
  • Ability to enter your own production forecast and production wedges
  • Supports AB, SK, and BC LLR programs

Field Summary

  • Identification of fields suited for divestiture or retention
  • Estimation of potential LLR increase per field after applying reduction opportunities
  • Optimize A&D LLR impacts

Individual Well Analysis

  • Provides expected liability reduction
  • Summarizes digital submissions to achieve liability reductions
  • Companion report draws well schematics and significantly reduces well file review time
  • Built-in Google Earth Mapping to assist with lease merging

Individual Facility Analysis

  • Provides expected liability reduction via license amendments
  • Built-in Google Earth mapping to assist with facility reductions

End of Life Liability Analysis

  • Highly accurate
  • AFE ready
  • Estimates for wells, pipelines and facilities

Ready to reduce your company liabilities?

Learn more about how Solstice Engineering can help minimize your liabilities and maximize your operational success.