This two-day course will provide a practical understanding of appraisal methods and techniques that are applied by the market for acquisition of oil and gas interests. The course while intended to be a primer will include a discussion of standard appraisal concepts, value patterns in the market, commodity price analysis and consideration of risks. Course concepts will be applied to case histories. A complete set of course materials (more than 200 pages with checklists and case histories) are included.
Attendees will be introduced to methods that are commonly used by market participants to value upstream oil and gas properties. The course includes an overview of upstream oil and gas activities and the range of possible oil and gas rights, such as royalties and working interests. The cost approach, comparable sales and income methods of valuation will all be presented. A variety of methods for adjusting value based on risk will be covered. Upon completion of the course, participants will understand how market participants value upstream oil and gas property rights.
No pre-requisites are required for the course. Some familiarity with the upstream oil and gas industry will be helpful, but a brief introduction to the industry will be included in order to promote understanding. Students are required to bring a calculator to class.