Oil and Gas Divestment Services
There are five major themes that are standard with all our sales and which differentiate Albrecht & Associates, Inc. from our competition: (1) We do our early evaluation without charge; (2) We estimate the selling price at the time we do that evaluation and, if this appraisal meets your expectations, we hope to proceed with marketing the properties, although you are under no obligation to use us; (3) You may always reject all bids; (4) Most of our payment is due only when you accomplish a sale; and (5) We believe the seller should be relieved of all presentation, distribution, marketing, and data room activity minutiae (We do all the work).
Market Evaluation
Albrecht & Associates, Inc. performs a market assessment of all the properties being considered for sale. Only if our estimate of likely selling price meets your requirements will we proceed. Our engineering report will be quickly converted into the formal marketing package that will reflect current market conditions and will cover both the producing and undeveloped properties.
- We will engineer every well, behind pipe opportunity, PUD, and any other upside opportunity we can identify.
- We will review your lease operating statements, make any necessary adjustments, and use that data for our engineering.
- We will analyze oil and gas prices, develop the appropriate price differentials for your properties, and use pricing projections consistent with the current market.
- We do not use third-party engineering reports.
- To obtain consistency among our offering documents, Bob Albrecht supervises all of our engineering.
We will need your help only for a limited time to provide ownership information and data for our engineering. We will also need you to spend a day or so with our technical team to discuss upside opportunities. When we have finished our work, you will need to review our valuation and offering documents.
Our engineering evaluation results in: (1) determination of a realistic sales price that we will share with you, and (2) the marketing document that serves as the “road map” for the aggressive buyers that will help them stretch above the competition.
Marketing
Albrecht & Associates, Inc. places heavy emphasis on marketing our offerings. This is done in a carefully orchestrated, competitive environment. We seek the best of both worlds, i.e., (1) competition to achieve the highest price, and (2) a negotiated sale environment that avoids scaring away potential buyers with the “sealed bid” approach.
- We will distribute a complete sales package to a wide spectrum of active buyers and do telephone follow-up until each either makes a bid or determines he has no interest. (We can never know when a particular buyer may shift his regional preference or will find that his interest changes among operated and non-operated properties.) It is our responsibility to find the company that has to make an acquisition today or can find exceptional value in the assets being offered. We put our packages into all potentially receptive hands and then we follow up, follow up, follow up.
- We staff and run the data room in our offices in Houston. We believe it important that the people who have done the engineering are available to tell the story to potential buyers.
- We will screen offers (including bidders’ financial ability to close) and we deliver all legitimate offers to you.
It is normal for us to bring 10 to 30 legitimate offers to the seller, unless some bidder preempts the process by meeting the aggressive target that we have agreed to prior to the offering. Harrison Williams is our point man on marketing and negotiation.
Fees
Our fee structure is designed for performance: the achievement of full market value. We have a single upfront charge that covers all our engineering, travel and marketing expenses. The vast majority of our fee is only paid upon a successful closing.