An Interactive 5-Day Training Course
A&D, Asset Valuation & Technical Due Diligence
Technical due diligence for oil and gas asset transactions
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Duration
5 Days
Price
$ 4,000
Starting From
12 Jul 2027
A&D, Asset Valuation & Technical Due Diligence
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A&D, Asset Valuation & Technical Due Diligence - RE-ADDD-PEA27
| Code | Date | Time | Duration | Location | Currency | Early Bird Fee Per Person |
|---|---|---|---|---|---|---|
| RE-ADDD-PEA27 | 12 - 16 Jul 2027 | 10 AM CST | 4 Hours Per Day |
Online |
USD |
4000 |
Need this for a group? We deliver the same course in-house — face-to-face at your location or online — tailored to your assets and team level. Contact info@peassociations.com.
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A&D, Asset Valuation & Technical Due Diligence
Description
Buying a producing asset means buying someone else's technical work, their operating decisions and their liabilities, on the basis of information they have selected and within a period they have set. Due diligence is the process of establishing what is actually being acquired, and it is performed under constraints that ordinary technical work does not carry: limited data, limited time, no ability to acquire new information, and a counterparty with an interest in the buyer reaching a particular conclusion.
This training covers that work. Transaction process and structure are developed first, since the technical scope depends on what is being bought and how. Data room review follows, covering what is normally provided, what is normally absent, how to prioritise under time pressure and how to identify the gaps that matter. Subsurface due diligence is then developed: validating in-place volumes, reserves, recovery assumptions and production forecasts against the evidence, and identifying where the seller's view is optimistic. Wells, facilities and integrity due diligence follow, including the liabilities that are frequently understated. Decommissioning liability assessment is covered separately because it is often the largest single item. Valuation methods, risk identification, its treatment in price and terms, and the technical input to negotiation and completion close the training.
The seller's forecast is the starting point and should never be the ending point. A divestment package contains a production forecast prepared by people who know the asset well and who benefit from a high valuation, and it is usually technically defensible while sitting toward the optimistic end of the defensible range. The buyer's task is to establish the range rather than to accept the point, and the difference between the seller's case and a reasonable base case is frequently the entire margin in the transaction.
Liabilities are where value is most often lost. Decommissioning cost, well integrity problems, facility integrity backlog, deferred maintenance, environmental obligations and contractual commitments all transfer with the asset, and all are easier to understate than reserves. Decommissioning in particular is a large, certain, late cost that discounting reduces but does not eliminate, and its estimation basis in a data room is often several years old and prepared for internal provisioning rather than for transaction purposes.
Time and access constraints shape the method. A due diligence team may have a few weeks, a virtual data room, limited question and answer, and no access to the field or its staff beyond a management presentation. This makes prioritisation the critical skill: identifying the two or three technical questions that could materially change the valuation, and directing the available effort at them rather than attempting comprehensive review of everything supplied.
Finally, technical findings translate into commercial outcomes through specific mechanisms. A finding may reduce the price, shift risk through warranties and indemnities, produce a completion condition, adjust the effective date settlement, or in some cases end the transaction. Technical staff who understand these mechanisms present findings in a form that can be acted on, quantified and attached to a specific term, rather than as a list of concerns.
By the end of this training, participants will be able to:
- Describe acquisition and divestment process, structure and their technical implications
- Plan and prioritise due diligence under data, time and access constraints
- Review a data room efficiently and identify the gaps that matter
- Validate in-place volumes, reserves and recovery assumptions against available evidence
- Test seller production forecasts and construct an independent base case
- Assess well stock condition, integrity and intervention liability
- Assess facility condition, integrity backlog and capital requirement
- Estimate decommissioning liability and assess the basis of the seller's provision
- Apply valuation methods appropriate to the asset and transaction
- Translate technical findings into price adjustment, warranties, conditions and negotiation positions
Organisations sending participants to this training will:
- Improve acquisition decisions and reduce value lost to overlooked liabilities
- Focus due diligence effort on the questions that change the valuation
- Improve the quality of divestment packages and the value realised from them
- Translate technical findings into commercial terms more effectively
- Reduce post-completion surprises and their cost
- Build internal due diligence capability rather than depending entirely on advisers
Participants will:
- Conduct due diligence efficiently under real constraints
- Test a seller's technical case rather than reviewing it
- Identify and quantify liabilities that reduce asset value
- Value an asset and defend the valuation
- Present findings in a form that supports negotiation
- Build a capability that broadens technical careers into commercial work
- Reservoir, production and facilities engineers involved in transactions
- Reserves and evaluation engineers
- Business development and commercial staff
- Asset managers evaluating acquisition and divestment opportunities
- Technical staff preparing divestment packages
- Corporate planning and portfolio staff
- Advisers and consultants supporting transactions
Module 1 - Transaction Process and Structure
- Drivers for acquisition and divestment
- Transaction types: asset sale, corporate acquisition, farm-in, swap
- Transaction process and its stages
- Teaser, information memorandum and data room access
- Non-binding and binding offer stages
- Effective date, completion date and the interim period
- Sale and purchase agreement structure and its technical clauses
- Warranties, indemnities and disclosure
- Conditions precedent and completion mechanics
- Preemption rights and partner approvals
- Regulatory and government approval requirements
- Where technical input enters the process
Module 2 - Due Diligence Planning
- Defining due diligence scope against the transaction
- Identifying the questions that could change the valuation
- Prioritisation under time and resource constraints
- Team composition and discipline coverage
- Data room structure and typical content
- What is normally provided and what is normally absent
- Question and answer process and its use
- Management presentation and site visit value
- Working with advisers and technical consultants
- Documenting findings as work proceeds
- Red flag identification and escalation
Module 3 - Subsurface Due Diligence
- Reviewing the geological and geophysical basis
- Validating in-place volume estimates
- Testing structural and property assumptions
- Reviewing petrophysical interpretation and cut-offs
- Assessing reservoir model quality and its history match
- Validating reserves against classification requirements
- Testing recovery factor assumptions against analogues and performance
- Reviewing enhanced recovery assumptions and their maturity
- Assessing undeveloped location assumptions and spacing
- Identifying upside not captured in the seller's case
- Constructing an independent subsurface view
Module 4 - Production Forecast Validation
- Reviewing the seller's production forecast and its basis
- Testing decline assumptions against production history
- Assessing forecast against well level performance
- Reviewing downtime, deferment and uptime assumptions
- Assessing infill and intervention assumptions in the forecast
- Testing water and gas handling constraints
- Facility capacity constraints on the forecast
- Building an independent base case forecast
- Constructing low and high cases
- Quantifying the difference between seller and buyer views
- Sensitivity of valuation to forecast assumptions
Module 5 - Wells, Facilities and Integrity
- Well stock review: count, status, age, completion type
- Well integrity status and annulus pressure history
- Intervention and workover backlog and its cost
- Idle and suspended wells and their liability
- Artificial lift condition and replacement requirement
- Facility age, condition and inspection status
- Integrity backlog and deferred maintenance
- Safety critical element status and verification
- Capital requirement to sustain production
- Compliance status and outstanding regulatory actions
- Operating cost review and its benchmarking
- Identifying liabilities not disclosed in the package
Module 6 - Decommissioning Liability
- Decommissioning scope: wells, facilities, pipelines, site restoration
- Well abandonment cost estimation
- Facility removal cost estimation
- Basis and vintage of the seller's provision
- Cost escalation and its treatment
- Timing of decommissioning and its dependence on field life
- Discounting decommissioning and its effect on present value
- Regulatory requirements and their evolution
- Residual liability, joint and several liability and decommissioning security
- Security arrangements and their cost
- Effect of field life extension on liability timing
- Decommissioning as a value item in the transaction
Module 7 - Valuation
- Discounted cash flow valuation and its inputs
- Discount rate selection for asset valuation
- Post-tax and post-fiscal valuation
- Effective date and interim period adjustments
- Valuation of proved, probable and possible categories
- Risking and its application to upside
- Comparable transaction analysis and its use
- Value per barrel and other metrics and their limitations
- Option value and its treatment
- Sensitivity and probabilistic valuation
- Buyer and seller valuation differences and their sources
- Constructing a bid range
Module 8 - Risk, Findings and Negotiation
- Categorising findings by materiality and certainty
- Quantifying the value effect of each finding
- Findings that adjust price against findings that adjust terms
- Warranties and indemnities as risk allocation
- Conditions precedent arising from technical findings
- Completion adjustments and their mechanics
- Escrow and holdback arrangements
- Presenting findings to the deal team
- Technical support during negotiation
- Walking away and its justification
- Post-completion transition and integration
- Reviewing transaction outcomes against due diligence conclusions
Upon successful completion of this training course, delegates will be awarded an official Certificate of Completion issued by the Petroleum Engineers Association (PEA), an ISO 9001:2015 certified training organization. The certificate carries 10 Credits and formally records the total learning hours completed.
Each certificate is signed by the Course Facilitator and the CEO of the Petroleum Engineers Association, and serves as verifiable proof of professional training that delegates can present to employers and professional bodies worldwide.
Your expert course leader is a senior petroleum engineering consultant, certified trainer and university lecturer with more than 25 years of experience, specialising in A&D, asset valuation and technical due diligence.
His technical expertise covers transaction process and structure, data room review and its limitations, subsurface and facilities due diligence, reserves and production forecast validation, liability assessment, valuation methods, risk identification and the technical input to negotiation and completion.
Over the course of his career, he has provided consulting and project support to international operators and national oil companies across the Middle East, North Africa, Asia Pacific and the Americas, working on asset acquisition and divestment reviews, technical due diligence assignments and asset valuation studies across a range of transaction types.
He has designed and delivered technical training programmes on A&D, asset valuation and technical due diligence for engineers and technical teams, conducting these sessions both onsite and online across the Middle East, Asia Pacific, Africa and Europe.
Frequently Asked Questions
All course bookings made through PEA are strictly non-refundable. By registering for a course, you acknowledge and accept that all fees are payable in full and are not subject to refund under any circumstances, including changes in personal or professional commitments or partial attendance.
PEA reserves the right to make reasonable adjustments to course content, trainers, or schedules where necessary, without entitling delegates to a refund. Comprehensive details of each course — including objectives, target audience, and content — are clearly outlined before enrolment, and it is the responsibility of the delegate to ensure the course's suitability prior to booking.
For any inquiries related to cancellations or bookings, please contact our support team, who will be happy to assist you.
