S E C T I O N S

REPRESENTATIVE EXPERIENCE – Upstream and Midstream

The energy value chain begins with knowledge and exposure to upstream supply, and the expertise of MCDRS begins there also. We can assess the key risks of exploration (source, trap, timing, seal, and reservoir), and address the fiscal parameters of different petroleum contracts and their impact on the economics for upstream projects. Our staff have experience in drilling, production, reservoir engineering, and processing oil and natural gas into either a) transportable fluids and/or b) into commercially, marketable energy forms. We are experienced in upstream and midstream asset portfolio ranking, divestments and acquisitions, and the negotiations required to close a deal. Our upstream and midstream experience covers North America and the world. We have proprietary data to benchmark development and operating costs for onshore and offshore, oil and gas fields that is used in our due diligence evaluations. Some select examples of our upstream and midstream experience are:

Guatemala – Upstream / Midstream Business Unit Asset Valuation: Provided independent due diligence review of the upstream assets, validating proved, probable, and possible reserves as well as providing our risked assessment of the exploration resources to be discovered.  We valued export pipelines and a local refinery for supplying the domestic markets.  Economic business models were developed for each commercial entity / each contract with the outcomes consolidated to provide a series of discounted cash flow summaries for the business unit under different price and cost scenarios.

Russia – Upstream Technical Due Diligence: Our staff accessed a confidential data room to develop a technical due diligence review of the first, and largest, oil and gas development project in far Eastern Russia. We assessed the reserves, the development plans for the fields, the costs, the pipeline systems, the processing systems and the export systems for our client. We summarized the key issues and risks and the expected project value.

Argentina – Upstream Portfolio Review and Optimization Planning: An international operator asked us how they could create maximum value from their upstream portfolio in Argentina. We assessed each field development, reserves, expected remaining life, production facilities and exploration prospects. We recommended strategic divestment plans for certain assets that had greater strategic value to others than to the client. We also identified assets with efficiencies and economies of scale that would compliment the remaining assets of the client.

Mexico / North America – Natural Gas Supply / Demand: Our staff provided a bottom up evaluation/forecast, from the basin level, of the natural gas supply for North America from all domestic and potential import sources. They also forecast the natural gas demand curve for the United States and for Mexico under different macro-economic conditions and pricing scenarios.

Namibia – Upstream Development Design, Planning, and Benchmarking: We provided scoping development plans for a natural gas find off the remote coast of Namibia. We designed drilling and production scenarios, equipment sizes and capital and operating costs project. We developed a financial model of the cash flow profile for project financing as part of our scope.

Iraq – Research in Global Best Practices for Upstream Oil & Gas Fiscal Terms: Our staff were part of a USAID project for the Iraqi Ministry of Oil to understand global best practices in the fiscal and legal terms for oil and gas contracts. We benchmarked and provided summaries of the different types of oil and natural gas agreements, along with a balanced perspective of the terms and of their impact to both the host government as well as to the investors.

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