Our Business Model:

Although RSK provides traditional engineering and geologic/geophysical services, the emphasis is on transactions and asset management. Our core business model is the acquisition and disposal of oil and gas exploration and production assets. RSK brings value added to the transaction by its in-depth understanding of the technical and commercial risks and attributes of upstream oil and gas assets.

Our model also differs from traditional energy consultants in that RSK provides evaluations that go beyond 1P, 2P and 3P reserves reports. RSK provides and in dept analysis of the play elements, the EMV of investment to reduce uncertainty and the risked volumes of hydrocarbons, both oil and gas cases with the expected NPV by use of an appropriate discount rate, rate of return and reserves growth potential. In some cases RSK will co-invest with the client putting its own capital at risk. Our preferred investment model is to achieve a reasonable risk-weighted rate of return which is not dependent upon leverage.

For the RSK model to be successful the level of technical expertise needs to be extremely high, a geographic focus is a necessary discipline (which results in a higher level of institutional knowledge) and the investor must be prepared to accept a high level of uncertainty. However, there are play types wherein the uncertainty can be quantified to acceptable and manageable levels of risk. There is a great deal of certainty that the market for viable oil and gas exploration and development projects will remain robust at historically high levels even should they be sold in markets with substantially lower price decks than those experienced in 2006 and 2007. The challenge is to find those prospects.

RSK has been highly successful in the identification of opportunities with low barriers to entry and high prospective gains through a combination of quantifiable technical, commercial and political value added. These opportunities are typically found in "Emerging" sedimentary basins.

We typically work on a handful of assignments at any given time with the emphasis on finding previously un-recognized value and or risk. The range of historic transaction sizes varies from $100MM to $3B US dollars. Our fees are generated from a combination of fee for services work relating to asset management and advisory services and at risk success fees for completed transactions.