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Multi-Basin Energy Company Accelerates Balance Sheet Objectives with $1B divestiture

CHALLENGE

This leading energy company was seeking to accelerate the preparation of a $1 billion divestiture with a key result to gain a complete understanding of the potential defects a buyer could strategically leverage against their assets. Utilizing ThoughtTrace, the company was able to perform a reverse due diligence campaign to quickly assess key fact patterns across oil and gas leases and other material contracts to strategically negotiate key components of the purchase and sales agreement. The company selected ThoughtTrace to address all functional requirements and dramatically improve the speed, accuracy, and data quality of the divestiture due diligence.

“Are you in a strong negotiation position if you don’t know what land you actually own? Absolutely not!”

– Data Management & Process Manager, Land and Geology & Geosciences

SOLUTION

The company implemented ThoughtTrace to provide a fast and accurate solution to protect its allocation of value it was seeking. Previously, they had performed analytical work using internal land staff, brokers, and land data management systems. While this process had been successful, it was slow, cumbersome, and sometimes incomplete. The management team saw an opportunity to utilize artificial intelligence with ThoughtTrace to locate critical information across their assets much more efficiently.

"We loaded 9,000 leases in a day and a half and ThoughtTrace extracted both vertical and horizontal pughs in a matter of minutes." – Land Admin Manager

RESULTS

Superior Understanding & Domain Expertise

Processed and analyzed over 9,000 leases in one week

Depth of Extraction

Over 97% Accuracy

The ThoughtTrace Difference

52x faster

Very Quick Time-to-Value

Immediate ROI

ThoughtTrace allowed the company to quickly process and analyze 9,000 leases in one week and accurately extract Vertical and Horizontal Pugh Clauses, Pooling, Surface Use, and Consent Language from all of the leases in a matter of minutes. Prior to ThoughtTrace, the company had multiple brokers manually reading approximately 30 leases per day. The pairing of the ThoughtTrace software platform and the project team resulted in data extraction and analysis being 52x faster than traditional methods with accuracy in excess of 97%. Highly skilled workers were able to be re-tasked to help with other critical aspects of the divestiture program.

Today, the company considers ThoughtTrace a trusted strategic vendor with an ongoing role to support its Land and Business Development activities.

"Are you in a strong negotiation position if you don't know what land you actually own? Absolutely not!"

Land Administration Manager

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