The Lay of the Land
Moving Thought Upstream: The Times They are a Changing: By Tim Supple, President
Bob Dylan’s refrain holds true for us all. However, in my 25 years in this business, these changes are unparalleled. For the first time in the history of oil and gas exploration the leases holding undeveloped acreage account for far more reserves than the acreage held by production. Five years ago, 80% of the value of a typical exploration company was based on Proven Producing Reserves (PPR), with some minimal value, normally around 10% – 20%, given to Potential Undeveloped Reserves. However, with the advent of unconventional shale, the opposite is now true. It is common to see E&P company reserves of Proved Producing Reserves in the 20% range and Potential Undeveloped Reserves at 80% of the company’s reserves. The difference is because of the low risk of drilling in the shale plays, the “Potential Undeveloped Reserves” are now carried as a real asset and has a greater value then Producing Reserves.
Proof is in the Metrics
For example, Range Resources reported to investors that at the end of 2011 they owned 4.4 Tcfe Proved Reserves and 44-60 Tcfe Resource Potential Reserves. (January 2012 Company Presentation). For the same period, Chesapeake reported 18.8 Tcfe of Proved Reserve and 111Tcfe of risked unproved resources potential and 338 Tcfe of unrisked unproved resource potential. (February 2011 Investor Presentation)
With the largest “Asset” value of the E&P now in “undeveloped acreage”, the test for E&P Company land departments will be how to maintain the value of oil and gas leases on undeveloped acreage, which will be expiring, or require pugh clause rentals, both vertical and horizontal, and/or timely development. Today, it is common to see leases with many tracts on sophisticated lease forms which include more and more “special provisions”. The days of the standard Producers 88 or standard company forms is quickly coming to an end. The next round of leasing will see even more “special provisions”.
As you already know, reporting new lease acquisitions and lease maintenance with paper, Excel, Word, FileMaker, Google Docs or Access, just will not work.
You Have a Choice
That is why we designed iLandMan to allow the field brokers and their clients to run reports on a tract by tract, well by well and/or unit by unit, basis. By using iLandMan, the Landman now has the ability to greatly increase the profitability of his company, not only during lease acquisition, but also through lease management and maintenance. If you’re not using iLandMan to create and maintain the value of your company’s greatest assets, Non Producing Reserves, you should call us.
At the next management or Board meeting, when they ask you, “What is the value of our company?”, you will have the exact acreage number as of that day. Only iLandMan can provide real time, accurate net acre reporting allowing the Landman to be the main value generator for the company.
“Yes, the times they are a changing”. iLandMan can help you change with the times.
iTech. You are the “i” in iLandMan
Interactive, On-Demand Training Now Available
iLandMan customers can now login anywhere, anytime, to our new on-demand, interactive Web-Based Training. The Training is divided into multiple sections according to the workflow of the program and can be started and suspended allowing the individual to pick-up right where they left off. Each section requires interaction from the user and ends with a quiz. The quiz allows the learner to use their new found knowledge and gauge their proficiency instantly. This sets iLandMan’s training apart from traditional training programs because iLandMan provides hands on experience you need to complete the courses. These new skills are applied immediately in the field.
Here are some of the things you will learn with our first release of training modules.
The Overview helps you understand what can be expected when using iLandMan and visually introduces you to the program. It also provides insight into what you will learn in the training courses.
Tracts are the very substance of the iLandMan program so understanding how it corresponds with the rest of the system is crucial. This section looks into all aspects of what is involved in having a complete tract record. It will cover everything from chain of title to the status of owners who have been contacted for lease negotiations.
Lessees dictate a certain type of ownership that will eventually be tied to contracts. This training helps users understand not only the definition of a lessee but also how to query, add and edit them.
iLandMan offers the opportunity to prepare contracts within the system and track changes that have been made to it. This section provides guidance on how to fill out contract templates that can range from leases to mineral and royalty deeds.
Contracts include all types of contractual documents acquired by he landman in his duties, such as oil and gas leases, assignments, pipeline right of ways and seismic permits. This module explores a typical oil and gas lease and how it is entered and linked to tracts within the system.
Owners range in definition from surface to minerals, each having an address, phone number and tax identification number, etc. This section offers training in how to put in a complete address book record, as well as how to edit and search these records.
Once the training is complete, learners will be “iLandMan Certified” and will be able to print out a certificate demonstrating their new proficiencies.
Access the modules today by going to our website at www.ilandman.com, click on the services icon and go to training. Once you have completed the training please send us a message and tell us what you think!
Map Surface and Mineral Tracts Using Fully Functional Seismic and Leasehold GIS Maps based on both Surface and Mineral Ownership
Now your maps tell you where you have surface rights or mineral rights under contract and what type of contract.
Querry a MPA that shows the tracts where seismic permits exist and mineral leases from surface owners only, mineral owners only, or both.
©2012 iLandMan. All Rights Reserved.
If you have any questions about iLandMan, or want to set up a demonstration, please give us a call at 1-855-445-9629 or fill out our contact form.