Wellsite Liability Assessment

A privately owned oil and gas producer was considering acquiring 115 wellsites and small facilities. For due diligence, they tasked Earthmaster with assessing the environmental status of each site to estimate overall liability and identify any major issues requiring significant future expenditure.

Given the tight timeframe, Earthmaster swiftly assembled a team to review existing files and past environmental assessments. They conducted historical air photo reviews at the Alberta Air Photo repository and performed site visits on most locations. The liability assessment was completed and the report delivered within 22 days.

The deal closed with Earthmaster’s findings enabling the client to negotiate a $4.5 million reduction in the purchase price due to two major environmental issues identified. The assessment cost $34,000, yielding a substantial return on investment for the client.