Review of company operations and financial statements including:
Overview of business model and current operations
Review of most recent two-year historical financials including operating costs and capital expenditures
Overview of oil and gas reserves and production including:
Reserve report or reserve feasibility study
Production history; decline curves
Production offtake agreements
Consideration of regional geology and field development with the following:
Review the regional trend, field size, number of wells per field, production rates and ultimate production
Drilling practices, dry hole cost, completion cost, turnkey costs
Natural gas and crude transportation
Most likely producible reserves? Probability of success? Initial rates and declines?
Upside reserves? Probability of success? Initial rates and declines?
For each well: drilling costs, turnkey or day rate
Verify management backgrounds, leasehold and working interest agreements.