ACQUIRE
Identifying value
finding opportunities that others overlook
NP Oil & Gas's acquisition strategy encompasses both negotiated and marketed transactions. The team at NP Oil & Gas has a strong track record of identifying and quantifying upside potential that is often overlooked by firms marketing the assets. These insights are typically generated through a combination of data science methodologies and sound engineering and geoscience principles.
By focusing on the underlying data, NP Oil & Gas places less emphasis on geographic area or basin concentration, prioritizing instead the asset's overall profile. This approach allows the company to uncover value in less attention-grabbing areas, whether due to logistical complexities or other factors that create market opacity.
When considering asset profiles, NP Oil & Gas primarily targets and acquires assets with large, low-decline production bases that can be leveraged to finance future growth.
operate
NP Oil & Gas’s operating strategy strives to maintain 100% of wells producing 100% of what they’re capable of 100% of the time. In cases where NP Oil & Gas maintains a non-operated position, this means identifying ways to improve production and proposing them to the operator.
Production operations has the tremendously important task of ensuring that the lifeblood of the company is preserved. NP Oil & Gas achieves this by:
Encouraging an idea meritocracy amongst field and corporate office employees alike
Measuring the data that’s important
Paying attention to things that change, responding appropriately
Committing to continual growth and improvement
Creating value
continual improvement
Develop
Maximizing value
Determining where to deploy capital
The assets that NP Oil & Gas acquires have a bend towards quality. One aspect of this is the presence of multiple ways to win. In this context, maximizing asset value includes deploying capital in a way that limits risk, forces asset appreciation, and allows for sustainable growth. These objectives are easier to realize in a balanced way on assets with more options.
Certainty comes at the cost of optionality. In a sector that is known for having a high degree of uncertainty, NP Oil & Gas’s management team believes it is prudent to prioritize optionality over certainty so that the firm can adjust to prevailing market conditions in a way that allows it to deliver strong shareholder returns over the long term.
recompletions & Workovers
A deep inventory of low F&D, repeatable, low risk operations can offset production decline and keep the business performing consistently.
infill drilling & downspacing
Large assets that have previously seen significant capital development cycles have appraisal and production data that can be used to identify remaining low-risk drilling opportunities. These opportunities, while more capitally intensive, give an ability to realize growth targets.
secondary & tertiary processes
Producing conventional assets lend themselves to the application of engineering techniques that ensure all economic value has been extracted. These techniques may involve waterflooding, gas injection, or EOR processes.