Velvet Energy LTD combines Enersight with Val Nav for robust asset planning and increased investor reporting confidence
Velvet Energy Ltd. is a full-cycle exploration and production company producing 31,000boe/d. They’re focused in the liquid-rich gas and light oil window of the Deep Basin of Alberta, Canada. The company executes an organic growth business plan including early land capture, technical evaluation, exploration, and development of internally generated prospects.
Velvet was using a combination of Val NavTM and spreadsheets for all forecasting and budget runs. Their teams built an internal model used for calculating economic details on base wells, as well as scheduling out the development wells.
As they experienced drilling success in new areas, they had larger, more complex development plans on the horizon that would require quicker, more in-depth scenario analysis. Investors were demanding increased due diligence. Velvet knew they needed to update their technology to be more adaptable to a growing and evolving business plan.
Velvet’s internal system began posing problems for them as large files with a number of calculations started pushing the limits of the excel-based model. It was also lacking a visual outlay of the development plan. They knew they needed a better software solution to do the heavy lifting of data entry and modeling, allowing them to focus their expertise on value adds.
With 400 producing wells corporate wide, a more complex infrastructure picture was beginning to unfold. After proof of concept integrating Enersight with Val Nav in smaller fields, Velvet moved to implement Enersight corporately. Enersight’s plug-in from Val Nav exported all of the data housed giving node-by-node and line-by-line analysis to fully reconcile to Velvet’s old models. It enabled the type of modeling required, and the evaluation of development options to reach the asset’s goals.
“Velvet has been extremely pleased with implementing Aucerna’s Enersight software. Now within Enersight, after the base model was built, we can run multiple scenarios in a fraction of the time they would have previously taken. For our teams, it means, improved communication, tighter cycle times and ultimately a more robust analysis.” Lee Marchuk, Manager, Corporate Planning, Velvet Energy Ltd.
Implementing an integrated solution that included Enersight and Val Nav at Velvet allowed for robust asset planning and the confidence to quickly produce accurate forecasts. It has led to enhanced credibility with corporate lenders, investment banking advisors and strategic investors. Velvet saw tighter cycle times for monthly reviews, faster variance analysis for executive review and enhanced cross discipline communication.
The implementation process contributed to overall corporate strength and encouraged changes within the company including updates to roles and responsibilities in alignment with the changes in technology.