RSK [UK] Limited provides evaluation and advisory services for production and exploration properties throughout the world. RSK provides a unique blend of technical expertise in reserves evaluation, financial services, strategic planning and political advice for buyers and sellers alike.
Our Services at a glance:
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Asset Management
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Advisory & Evaluation Services
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M&A Transactions*
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Asset Management
- Technical Services - RSK has complete in-house services, including a state of the art 3D theater, to operate sophisticated exploration and production properties. These assets bring value added for either a potential future sale or "know-how" transfer in the creation of an operating staff on behalf of the owner. RSK provides asset management for non-operating working interest investors and the exploration, development and or production of hydrocarbons as an extension of the operator’s capabilities. In summary, RSK can fill in operations, G&G and engineering gaps or provide comprehensive program management.
- Information Technology - RSK strongly believes the job cannot be done without proper organization beforehand. Far too often the organization of electronic information is dealt with as an after-thought or by an engineer or geoscientist without an adequate understanding of the demands of the task, the adequacy of IT to be employed or the business practices specific to the IT industry. Increasingly the oil and gas industry relies upon IT to multiply the output of the dwindling pool of petroleum engineers and geoscientists. There is, of course, a corresponding increase in the complexity of the IT. To meet that challenge, RSK has in house a senior IT professional with the skills to calibrate the IT tools to the task and to manage the organization of the digital archives to make the access and use as easy and efficient as possible. We take on tasks as simple as organization of project data for data rooms to assisting a complete start-up organization requiring hardware and software for processing information and a system to organize and archive data.
- Exploration Management - RSK provides comprehensive exploration services at scales from the unproven basin to prospect assessment in established plays. Accordingly, we offer play element mapping based on tectonic reconstructions and seismic sequence evaluations down to mapping individual prospects. These evaluations typically are tied to the economic evaluation in a full cycle Monte Carlo format of chance of success, volumetrics and economic metrics. These assessments include evaluations of oil versus gas based on not only source geochemistry mapping but also seal evaluations. RSK also performs portfolio management carefully attuned to the business strategy and risk profile of the client.
- Field Development Plans - RSK provides dynamic and economic modeling to determine the most economically advantageous and or the highest recovery factor field development and production plan. Proper field development planning requires a comprehensive and simultaneous understanding of the reservoir, the technology and methods available, the fully risked range of outcomes from any given course of action and the expected value of those outcomes to the operator. To ensure that risks are identified and, more importantly, clearly communicated to the experts who can assess and address them, RSK employs truly integrated, multidisciplinary work processes and utilizes state of the art technology, such as our in-house 3D visualization theater. The resulting plans are ultimately integrated in a full cycle geologic, engineering and economic model and presented in a clear, objective report that informs and supports the operator from the boardroom to the field.
- Drilling Management - RSK provides wellbore location and drilling prognosis for the design of completions as a stand-alone service or as part of a comprehensive development plan. RSK employs 3D visualization combined with the client’s choice of modular or fully integrated geologic, engineering and economic software to evaluate and optimize the path, design and performance of the wellbore, create a comprehensive prognosis and compile a fully risked economic evaluation. As an independent consultant, RSK is free to objectively consider and recommend the full spectrum of tools, services and methods available to the industry. In addition to supporting the initial well proposal, RSK’s services allow non-operating partners, potential investors and state oil companies to fulfill their obligations by evaluating proposals with their own risk and economic criteria and on an equal technological footing with large operators and service companies.
- Technology Transfer - RSK provides training in the latest methods of resource valuation and recovery. It is not enough to become familiar with the latest IT, geophysical and reservoir management practices. Our training focus is to place technology in an economic context. Competency with technology is of little consequence without a contemporaneous understanding of its economic impact. RSK’s own practices stress redundancy in determining the economic impact of the collection of additional information, field development and reduction of uncertainty.
Advisory & Evaluation Services
- Geologic and Engineering Services - RSK is unique in its integration of disciplines by use of collaborative software and analytical processes that reduce the risk of miscommunication in discipline interfaces, reduce time and cost to solution, and better identify and quantify risk. RSK does design and interpretation of geophysical programs including aeromagnetic surveys, gravity surveys and 2D, 3D, 4D land and marine seismic surveys. Additionally RSK interprets the geologic setting from the basin to prospect/field level assessing source, migration, seal and reservoir properties in reports as well as maps used to generate trap geometries and volumes. Additionally RSK performs traditional petroleum engineering services such as reservoir modeling, production profiles, water-flood design, well-bore architecture and prognosis, drilling simulations, specification of production facilities and economics.
- Evaluation - A shortage of skilled geoscientists and reservoir / reserves engineers makes production and potential evaluation difficult for potential buyers, investors and lenders. RSK performs industry-standard technical and economic evaluations of exploration and production opportunities in support of project sanctioning. Through its association with the independent reserves evaluation company, Ryder Scott, RSK can arrange independent reserves certification. However, what reserves certificates do not yield is the additional resource potential, the probability of reserves migration of 3P to 2P and 2P to 1P, the work program required for reserves migration and risk and potential not otherwise identified under the stringent reserves audit criteria of the SEC and other regulatory bodies. Although reserves certificates are an important part of the evaluation they provide an incomplete picture by which to make investment and operating decisions. RSK provides the rest of the story beyond reserves certificates. When evaluating exploration potential our reports identify the chances of adequacy of the play elements and the independent minimum field sizes for oil and gas cases. For production we assess a range of outcomes of production rates and EUR bookended by a no further investment scenario and an investment scenario to maximize total resource recovery to economic limit at current market conditions. Within the range of outcomes the client can analyze the rate of return and NPV of the development and field management options. The work by the reserves auditor and RSK are complimentary and need not be duplicative.
- Risk Analysis and Decision Matrix - As a part of the evaluation process, RSK models chances of success at each step of the process and includes them in its Monte Carlo probabilistic simulations. The RSK methodology is aimed to identify the unknown and to quantify the uncertainties. This information is used to generate an economic decision matrix that helps the operator evaluate whether to use solely internal funds, to spread the risk through partnering, or to divest. There are a number of factors to be weighed in investment decisions that are clarified through the way RSK presents information in a decision matrix.
- Advisory Services - Favorable terms, competitive advantages and risk mitigation may sometimes be best secured through local partnering. Transparency and alignment of interests between the operator and the host government is increasingly complex and RSK is experienced in the arrangement of partnering commercial operators with state and privately owned enterprises resulting in win-win scenarios. RSK understands the energy business and the return expectations of the operators. This understanding is fundamental in assisting the seller in optimizing the return from the asset.
- Government Affairs - RSK’s staff is comprised of political talent commensurate with its high level of technical and financial skill. We have a deep understanding of emerging market political dynamics and the players. Our specializations are Africa, Latin America and the Mideast. This skill is enhanced by our close relationships with premier former foreign services specialists.
- Strategic Planning - RSK can assist operators and investors in strategic planning by integrating both the geoscience and business considerations consistent with client objectives. This is achieved by analyzing not just the value of a specific asset but how that asset contributes or detracts from the corporate portfolio and competitive advantages.
- Market Analysis - RSK can assist sellers in identification of buyers with appropriate technical skills, financial capacity, reserves replacement requirements and geographic range of operations to match the asset for proposed sale. The above mentioned factors are relative in both the price of the sale and the ultimate value recognized through the productive life of the divested asset.
M&A Transactions*
- Deal Flow - High commodity prices and a shortage of high quality opportunities are the challenges of the 21st century E&P business. RSK specializes in the arrangement of quality opportunities through private sales. RSK maintains top-level contacts with oil ministries throughout the world and operators and is often in the position to introduce the parties for negotiated sales. Also through its association with the independent financial advisory firm, The Scowcroft Group, RSK can access unique proprietary deal-flow and structure deals.
- Financial Services - RSK provides boutique investment banking services in-house and more comprehensive financial products through its partnering with a select group of major financial institutions. We offer a broad range of products including arrangement of equity, debt, debt swaps, M&A, political risk coverage, and structuring. Information on financial institution partners available upon request.
- Sales Process Management - RSK arranges public sales and data rooms as well as private sales for more challenging projects. Because property value may vary greatly by development method and the relative skill of the operator, the value to the operator and the state can be significantly enhanced by alignment of need with skills. RSK is highly proficient at identifying the projects needs and evaluating the skills of the prospective buyers and the effectiveness of the proposed work plan.
- At-Risk Investment - RSK will uniquely arrange the funding and execution of engineering and geoscience (G&G) work to optimize the understanding of commercial potential and value to the seller. Subject to stringent criteria for avoidance of conflicts of interest, RSK on occasion will take at risk positions in the form of success fees and or make co-investment with the client. This level of commitment aligns our interests with the client’s and incentivizes RSK to maximize asset value.
*M&A Services provided through an affiliate company, RSK Financial Services, Ltd.