In an industry historically known for highs and lows, sometimes extreme, the last few days have no doubt left E&P’s scrambling for revenue. While most have been fairly disciplined about keeping up with information around operated assets necessary for everything from D&C efficiency to marketing to accruals, the love and attention shown to non-op assets has always been minimal, if not non-existent. The most efficient of operators have traditionally used a combination of their revenue accounting and production departments to try and track their OBO assets and associated revenues, but most fell into the camp of simply cashing checks whenever they arrived.
With rigs now “falling” on a near daily basis, resources fortunate enough to be retained will undoubtedly be tasked with seeking immediate relief in the form of revenue and efficiencies, but also setting the stage for when things come back. Remember the 80’s bumper sticker “please God, give me $18 oil one more time, I promise not to screw it up this time”? Here we all are yet again counting on a forgiving God.
While existing technology has enabled all willing participants myriad options for staying on top of operated asset data as well as all of the latest and greatest high tech analytical offerings around publicly available production, drilling and completion data, a significant portion of the industry does not begin to optimize their rights to their OBO data.
PDS Energy Information has a nearly 30-year history of managing the secure distribution of partner data for our clients. Borne out of the need to insure compliance with JOA, Lessor, and Statutory reporting obligations, our data integration capabilities now enable us to drive near real-time efficiencies for not only our clients, but also their working interest owners.
Three major areas where your third-party operated well data can enhance operations and financials:
Non-op Daily Production Volumes – our clients typically exceed 70% of their non-op production volumes within 4 days, versus the 90-120 days when obtained through the traditional providers. Flowback reports, revenue capture, a litany of opportunities which fall directly to the bottom line.
Drilling Report Data – PDS’ proprietary software sits atop dozens of our client’s well databases (seamless integrating with WellView, OpenWells, etc.) allowing PDS to exchange daily report data in a near real-time environment between partners. No more hoping the scanning and mapping process hits 50% accuracy…. our normal is 100%. We are also able to, in most cases, rebuild your OBO data into our easy-to-use structured environment, undeniably increasing the value of the assets as well as enhancing your ability to utilize that intelligence for your own operations. Simple analogy – try selling a corporate aircraft with no maintenance records.
Supplemental D&C Analytics Data – there are a number of new AI and BI solutions around drilling and completion efficiencies. If it is worth $50,000 to utilize data from your most recent 50 wells to optimize your drilling and completion processes, does it not make sense to greatly enhance that source data with near real-time data from an additional 50 wells where you have OBO interests and rights to the data? Utilizing direct OBO data access through PDS’ Well Data Exchange as well as AMI-type reciprocal sharing agreements, our clients are no longer relegated to source data for wells 3, 5, or 10 miles away, we are providing near real-time data from immediate offsets.
PDS currently manages not only standard partner sharing obligations, but substantial asset/basin wide data sharing arrangements between clients such as XTO, WPX, Concho, Shell, Oxy, Continental, Devon and others. If you are interested in learning more about what your peers are achieving around revenue tracking, OBO data integration and asset value enhancement, give us a call. If you are still waiting for the return of $18 oil, let’s hope you are wrong.