Our Barnett Shale analyses began in 2003, well before others knew it existed, and continued for over 10 years. Analyses spanned the switch from vertical to horizontals wells, the growth outside of the early core area, the geometric growth of lease bonuses, the growth and disillusionment with Johnson and outlying counties, and ultimately the crash and decline. All of the major dynamics of modern shales played out on our computer screens in real time in this pioneer of the shale revolution.
When a major, diversified Japanese company wanted to invest in U.S. shales, Mr. Purvis was one of two technical leads for the multi-disciplinary team which provided education and evaluation services for several plays. Most in depth, we evaluated over $2 billion in potential acquisitions in the Eagle Ford play and helped them ultimately secure a successful participation in the play.
On the other end of the scale, clients have asked to prepare purchase/divestiture analyses and to represent them at auctions, as well as to prepare data packages, for interests ranging from $10,000s to the low millions. These assignments, as well as valuation studies described below, generated research into the outcomes of property auctions and the yardsticks of sales.
Fractured carbonate reservoirs can demonstrate various, and non-obvious, behaviors. Mr. Purvis organized and participated in the analyses of multiple such fields including a failed gas-injection project in Africa and 1000-bopd-per-well play onshore US. In both cases our analysis explained the behavior, corrected on-going expectations, and outlined optimizations for the fields.
Twice Mr. Purvis has raised private equity funds for management teams by preparing and presenting technical analyses of the plays to be pursued, including early stage Fayetteville Shale. In a third venture, he organized and managed the entire life-cycle of a drilling fund which participated in nearly 30 wells.
Fair Market Value
Both in and outside of the litigation, the reserves and economics analyses of Mr. Purvis have extended into independent determinations of Fair Market Value. He has performed such analyses for landowners and title companies in the Barnett Shale and used the same techniques to evaluate conventional properties for estates, for oil companies and even for the IRS.
Early stage exploration or delineation is often well-treated by probabilistic volumetric analysis, and Mr. Purvis has performed this kind of analysis in settings from the Paris basin to Central Asia. North Slope operator BP also hired himto do the same kind of analysis for its giant Prudhoe Bay Field in order to provide a sense-check to its overall development plan and reserves.
Before making a major portfolio investment in a gas gathering system, a hedge fund asked Mr. Purvis to analyze the future supply of natural gas to the system, both existing and potential future. The relationship continued as he has provided on-going insight into potential supply for the system.
Waterfloods can tremendously increase the EUR and value of a field. Or not, when it is not well-implemented. Studies by Mr. Purvis have diagnosed the causes of failed floods and begun the recommendations for improvements.