Commercial, M&A Studies
ICON undertakes commercial studies for business opportunities our clients may have.
These commercial studies include technical and commercial assessments and may result in a bankability statement for that business opportunity.
It often takes many moving parts to make an offshore field development commercially profitable.
Configurating assets differently can sometimes give a new outcome for a marginal field.
Calculating decommissiong and abandonment liabilities are a crucial component of late life M&A deals..
We are very often used by banks, project investors and partners to carry out PEER reviews to challenge assumptions and development plans and to provide alternative solutions.
ICON can provide independent reports at a Board of Directors level with impartial, arm’s length analysis of M&A transactions.
ICON's field development, concept selection and execution planning skillsets are generally complementary to the client's traditional in-house expertise of G+G, finance and drilling/completions.
ICON offers independent, practical, risk-assessed advice to our clients based on our significant in-house development expertise.
1. After divesting its existing portfolio due to shareholder and investor concerns and following a strategic review of its portfolio, a listed exploration company needed to conduct due diligence on a number of identified M&A opportunities that had been presented to the Board of Directors.
ICON was able to conduct high level analysis of the various opportunities and challenge the development scenarios and assumptions. For one project , as an example, this enabled the Board to revisit development options and cash flow requirements, and crucially, look at an alternative development model using leased production facilities paid out of cashflow as opposed to a conventional dilutionary, capex-intensive approach.
2. Another case involved a company which for a number of years was marketing a portfolio of assets for divestment to third parties (via conventional farm-in or complete divestment). A fresh look at the portfolio by ICON resulted in a different development approach and an updated execution plan with an emphasis on staged, cashflow reliant investment versus significant upfront capex.