Client
Client is an independent E&P company focused on U.S. unconventional resource plays.
Industry
Energy – Oil & Gas
Project Timeframe
April – May 2023
Revenew Services
Performance Improvement – Post Close Reviews
Key Value Proposition
Reviewed Client’s Purchase and Sale Agreement (“PSA”) with Seller for assets priced at $3B. We provided Client with a final report of total recoveries including adjustments to the closing statements for the PSA and the Transition Services Agreement (“TSA”) within 50 days of Client’s receipt of the closing statements.
Project Scope
Revenew provided Subject Matter Experts (“SMEs”), specialists and analysts focused on the following areas for the Post Close Review:
- Property Costs which included:
- Drilling Capital Costs
- Completion Capital Costs
- Surface Equipment Capital Costs
- Lease Operating Expenses
- Transition Period and Fees
- Annual and Corporate Costs
Sponsored by Accounting, Revenew coordinated efforts with the Purchaser’s Asset team, Accounts Payable, Joint Interest Accounting, and equivalent Seller teams to validate findings and ensure review work was not being duplicated. Revenew also assisted Purchaser in obtaining missing Seller’s documents, invoices, checks, and journal entry records for the transition period for future audits.
Key Outcomes
TSA
Findings consisted of time writing overcharges, unapproved bonus payments, pre effective date costs for vacation pay outs, erroneous charges, and pre-effective date sales and use taxes.
PSA
Findings consisted of pre-effective date costs, miscoded invoices, time writing overcharges, pre-effective severance and payroll, off-cycle payroll errors, and duplicate invoices.
Other recoveries
Findings consisted of overbilling of net costs to Purchaser on drilled wells due to incorrect bill deck set up by Seller. Purchaser to issue Joint Interest Billing to working interest owner to recover costs.