E&P Strategy Case Studies

Issue
The Company had undergone a period of rapid growth fuelled by successful exploration and corporate acquisitions.  They needed to scale up exploration spend and outcome (find more!) to match the growth of the Company and increased barrels needed for reserve replacement.  The Company was also concerned that the current portfolio spread did not have the depth necessary for continued growth.

Consulting Approach
Paras consultants carried out an integrated project that covered the following topics:

• Look back and performance analysis
• Review current future portfolio in the light of lessons learned
• Implement a transparent process (web enabled) for prospect submission, ranking and capital allocation
• Set up a process for a systematic basin review to frame exploration strategy
• Implement a consistent play fairway analysis approach across the Company
• Review resource/capital spend in to support revised exploration strategy

Outcome
The Company has stepped up exploration spend and resourcing.  Corporate executives are happy with the case presented and are enthusiastically supporting exploration.

Issue
The Company wanted to find out if there was any information that could be gleaned from our benchmarking data that would indicate a ‘best spend’ allocation between staffing, drilling and geophysics.  They also wanted a briefing on the key results on what makes for successful exploration, again based on the benchmarking work.

Consulting Approach
Paras consultants prepared a presentation on the highlights from the benchmarking study.  They also analysed the relationship between geophysics, drilling and staffing and concluded that there was no ‘correct’ relationship.  However what was shown was that the most successful companies had consistent levels of investment independent of oil price.  The Company’s expenditure fluctuated wildly.  Paras also introduced the concept of exploration efficiency – the ratio of staff to drilling and geophysics. 

Outcome
A success – The thinking developed here has been very useful to the Company.

Issue
The Client, a Government Energy Department, wanted to re-invigorate exploration interest in the region. Currently under-explored, and considered challenging, the Client needed to look at an over-all strategy.

Consulting Approach
Paras consultants worked with the client over a period of almost two years. The first task was to take a look at the prospectivity, and work on a gap analysis, and build the geological story. Once this was achieved, a marketing campaign was initiated, including conference, magazine and seminar engagements. At each stage, Paras consultants worked alongside client personnel, training and encouraging onward internal expertise.

Outcome
The client was very happy with the increased interest in the region. An ongoing campaign has resulted in successful licence rounds.

Resources
This was a large project with a variety of skills involved. Paras provided key personnel with both geological and marketing expertise over the course of the project.