FARMOUT PROCESS

Get Started. It's Free
or sign up with your email address
Rocket clouds
FARMOUT PROCESS by Mind Map: FARMOUT PROCESS

1. 1. PREPARATION

1.1. Decision to farmout

1.2. Why are you farming out?

1.2.1. Budgetary?

1.2.2. Timing?

1.2.3. Lack of appropriate expertise?

1.2.4. Portfolio optimization (risk management)

1.3. What do you need?

1.3.1. Seismic/well

1.3.2. Back costs

1.4. How long do you have?

1.5. What is the value of your project?

1.6. Who is the ideal partner?

1.6.1. Do they have money, expertise?

1.7. Prepare budget for the Farmout

1.8. Data

1.8.1. Collation of all data

1.8.2. Independent audits

1.9. Prepare Documents

1.9.1. Term sheet/HOA

1.9.2. Prepare Confidentiality Agreement

1.10. Are there any barriers?

1.10.1. Regulatory or partner?

1.11. Teaser/summary preparation

1.12. What is your Marketing methodology

1.12.1. “AIDA”

1.12.2. Focussed

1.12.3. Public

2. MARKETING

2.1. Contact Farmees

2.2. CA signed

2.3. Data Room Preparation

2.3.1. Outline

2.3.1.1. Operations Plan - Exploration & Appraisal

2.3.1.2. Operations Plan - Development

2.3.1.3. Project Costs

2.3.1.4. Markets

2.3.1.5. Legal

2.3.1.6. Funding and Finance Plan

2.3.1.7. Economic & Financial Analysis

2.3.1.8. Comparable Aset & Corporate Trades

2.3.1.9. Risk Evaluation

2.3.2. Operations Plan - Exploration & Production

2.3.2.1. The Program

2.3.2.2. Operating Environment

2.3.2.2.1. History

2.3.2.2.2. Other Operators

2.3.2.3. Program Costs & Schedule

2.3.2.3.1. Tsrget

2.3.2.3.2. Reasonableness of Schedules

2.3.2.3.3. Management & Execution Plan

2.3.3. Operations Plan - Development

2.3.3.1. Forecast Reserves & Production - success case

2.3.3.1.1. Inhouse Reserves, 3rd party, reguatory reporting

2.3.3.2. Development Plans & Approvals

2.3.3.3. Development Costs & Schedule

2.3.3.3.1. Cost estimates, detail, equipment avaliablity, timing

2.3.3.4. Management & Execution Plan

2.3.3.4.1. Key Skills in Place

2.3.3.4.2. Work Permits

2.3.3.5. Environment & Social Community

2.3.3.5.1. Base line studies, EIA, hazardous materials

2.3.3.5.2. Local community relationships

3. ENGAGEMENT

3.1. Terms Sheet/LOI

3.2. Farmout Agreement and SPA

3.3. Data Room Management

3.3.1. Follow Up and answer every question

3.3.2. Consolidate Q&A list and questions

4. CLOSING

4.1. Finalize FOA

4.2. JV approval

4.3. Govt Approval

4.3.1. Finalizing CPs

5. POST-CLOSING

5.1. Assigning Operatorship

5.2. Managing the JV relationship