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
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
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
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.