In 1984, E. Hunter Herron, PhD founded Petro-Analysis Inc., the predecessor company of Petroleum Equities Inc. Certain assets of Petro-Analysis, including its trade name, were sold to ICF Consulting in 1990. The consulting services of Petro-Analysis have since been conducted by Petroleum Equities.
In 1989, Dr. Herron was appointed director of petroleum projects at CORE International Inc., a management consulting firm specializing in the assessment of industrial projects in developing countries. Petroleum Equities and CORE have since collaborated on numerous assignments in Asia, Europe, and South America. Review a summary of a mission to India.
Following a 1991 equity acquisition in World Energy Systems Incorporated, Petroleum Equities has directed all technical aspects of the commercialization of World Energy Systems' proprietary process for producing very heavy crude oils and natural bitumens. Review a brief report on heavy oil as an alternative to conventional petroleum supplies.
Petroleum Equities entered into an agreement in 1997 with J.D. Hughes & Associates Inc. to cooperate in the identification and evaluation of acquisitions and divestitures of oil and gas assets.
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Expert Testimony
Analysis and expert testimony for litigants in civil disputes regarding the value of oil and gas properties. Clients include:
- Estate executors
- Individual investors
- Independent operators
- Limited partnerships and joint ventures.
Analysis of Petroleum Ventures
Economic projections and feasibility studies for a variety of clients with differing objectives:
- Independent operators with new drilling programs who are seeking funding from limited partners or joint-venture participants
- Financial entities conducting due diligence prior to committing investment capital to oil and gas projects
- Government agencies conducting infrastructure planning in the energy or petroleum sectors.
Acquisitions and Divestitures
Identification of oil and gas assets for acquisition compatible with a client's guidelines for purchase. Alternatively, identification of appropriate purchasers for assets a client is seeking to divest. Such assignments are conducted in strict confidence and accompanied by whatever economic evaluations and level of due diligence the client requests.
Property Appraisals
Petroleum Equities typically conducts property appraisals either for operators and financial entities considering acquisitions and divestitures or for individual investors considering charitable donations of their oil and gas interests.
Technical Reports
Technical reports prepared by Petroleum Equities include:
- Documentation of economic analyses and feasibility studies for distribution to clients' potential investors
- Business plans and technology proposals for clients developing advanced methods of recovering unconventional oil and gas
- Compilation of patent filings for clients developing new technologies
- Documentation of infrastructure studies, conducted for government entities in compliance with government guidelines.
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Fraud-Derived Damages from Oil and Gas Investments
For the general partner of a group of limited partnerships, Petroleum Equities analyzed damages caused by the misrepresentation of the value of royalty interests in producing wells purchased by the partnerships. Based on this analysis, the general partner filed suit on behalf of the limited partners. At trial, the jury awarded a $5.5 million judgment to the partnerships.
Economic Viability of Appalachian Gas Wells
For an independent oil and gas operator, an analysis was conducted of the economic outlook of a limited partnership formed to drill natural gas wells in central Pennsylvania. The partnership was successfully funded for $1.2 million and now operates profitably.
Due Diligence on a Limited Partnership Drilling Program
For an investor considering substantial participation in a drilling partnership, due diligence showed the general partner’s projections of production from the natural gas wells to be drilled were not justified by actual production from existing wells. Consequently, it was unlikely the drilling partnership would provide satisfactory returns, even after accounting for the high gas prices currently being realized.
Development of Technology for Heavy Oil Production
For an independent petroleum research company, Petroleum Equities compiled two extensive patents covering the company's proprietary process to produce deposits of very heavy hydrocarbons. Both patents were awarded in the United States, and filings have since been completed in Canada and Venezuela.
In addition, a comprehensive proposal regarding commercialization of the technology covered by the patents was prepared. Based on the proposal, an independent petroleum company entered into an agreement with the research company to develop a commercialization structure.
Application for Exploration Concession in South America
For a private investor group, a technical proposal was developed to acquire a 500,000-acre tract for petroleum exploration in the Llanos Basin of Colombia, South America. Based on the proposal, a major independent producer joined the group as operator and the concession filing was completed with Ecopetrol, the Colombian national oil company. But ultimately, Ecopetrol reserved the concession for its own development.
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Petroleum Equities has conducted assignments on behalf of:
etroleum Equities Inc. is an independent management consulting firm that specializes in the evaluation of projects involving the exploration and production of crude oil and natural gas.
