When you need a reliable valuation for your non-reserve oil & gas lands, you can count on Seaton-Jordan. We will ensure your undeveloped land holdings are reflected as part of your corporate asset base at fair market value.
Over the past few years, capital markets have become increasingly tight and auditors have been diving deeper into corporate records. Thorough land evaluations can be time-consuming work. Hiring a trusted, competent professional to provide your company with an independent land evaluation has become more important than ever. Spend your time on other strategic efforts, knowing your land evaluation is in good hands.
Thanks to horizontal drilling and hydraulic fracturing, reserves that were once thought to be unrecoverable are now proving to be very lucrative and continually sought after. Many companies have land holdings that do not have booked reserves, but offsetting land sale data dictates there could be considerable upside potential. By hiring Seaton-Jordan to evaluate your undeveloped lands, as well as developed/non-producing lands, you can unlock value for your shareholders.
Seaton-Jordan will examine each parcel within your current land holdings to ensure a complete analysis of your land base. Your land evaluation – whether undeveloped, developed/non-producing, or both – will provide the information necessary for:
- Quarterly or Annual Reports
- Acquisitions and Divestitures
- Capital Investments
We know regulatory compliance is critical to your business. All evaluations are NI 51-101 compliant and adhere to the following guidelines.
The calculation of value may be based on one or more of the following factors:
- the acquisition cost of the unproved property to the reporting issuer, provided there have been no material changes in the unproved property, the surrounding properties, or the general oil and gas economic climate since acquisition;
- recent sales by others of interests in the same unproved property;
- terms and conditions, expressed in monetary terms, of recent farm-in agreements related to the unproved property;
- terms and conditions, expressed in monetary terms, of recent work commitments related to the unproved property;
- recent sales of similar properties in the same general area;
- recent exploration and discovery activity in the general area;
- the remaining term of the unproved property; or
- burdens (such as overriding royalties) that impact on the value of the property.