A reserve report
Reserve and cash flow analysis prepared in-house by our engineers — decline behavior, economic limit and a valuation of the interest as it stands today.
Consulting
Reserve reports and valuations
The same engineering that underwrites Terravon's acquisitions is available on a consulting basis, whether or not you intend to sell.
Owners who are not selling
Estate and trust planning, gifting and basis questions, divorce and partnership divisions, lending, or simply establishing what an inherited interest is actually worth.
A flat consulting fee
Quoted up front once we see the scope. The engagement is independent of any transaction — there is no obligation to offer the interest to Terravon, and no obligation for Terravon to bid.
Scope
What a report covers
Each report is built from the well data up, using the same workflow the firm applies to its own acquisitions.
- Production history and decline analysis — each well’s oil, gas and NGL streams, with fitted forecast segments.
- Reserve estimates by category — producing, non-producing and, where supported, undeveloped.
- Cash flow and present value — at a stated price deck and discount rate, with sensitivities to both.
- A valuation of the interest — net to your ownership, whether royalty, non-operated or operated.
- Operator and development outlook — what the current operator is doing on the lease and what that implies for the interest.
- Revenue statement review — a check that what is being paid reconciles to what is being produced.
- Written summary — the findings in plain terms, suitable for an attorney, lender, trustee or family member.
Common Uses
When an independent valuation is needed
Most engagements begin with a question that has nothing to do with selling.
Estates and trusts
Establishing a basis at death, dividing an interest among heirs, or giving a trustee a defensible number.
Gifting and planning
Supporting a gift or transfer with an engineering-based valuation rather than a guess.
Divorce and partnership divisions
A neutral valuation both sides can work from when an interest has to be split or bought out.
Lending
Reserve-based support for a loan secured by the interest.
Inherited interests
Finding out what an interest you did not choose to own is actually worth, and whether it is being paid correctly.
Evaluating an offer
An independent view of value before accepting an offer from another buyer — including one from Terravon.
Process
From enquiry to report
Send what you have
API numbers for the wells, recent check detail or revenue statements, and a legal description or lease name where you have one.
Scope and fee
We confirm the wells and the ownership, define the scope and quote a flat fee. Nothing proceeds until you approve it.
Report delivered
The reserve report and written summary, with a call to walk through the findings if you would like one.
Independence
No obligation either way
A consulting engagement does not commit you to sell, and does not commit Terravon to bid. If you later decide to divest, the firm will evaluate the interest on the same terms as any other — and you will already know what it is worth.