A financing body sought input on the ARO value of a potential property acquisition.
Vertex, in a very compressed timeline, was able to generate a bottom-up cost estimate for the ARO and inactive liability value on the asset which included nearly 900 wellbores, 600 productive wells, 100 surface facilities, hundreds of kilometers of roads, and thousands of acres of land for reclamation and remediation. The comprehensive review was conducted and compared to previously developed assessments. A number of cost oversights were identified and remedied.
The client was able to proceed with the financing of the property acquisition with an increased degree of confidence.
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