Using the SEC’s “Reliable Technology” concept for Buy/Sell Transaction
Examine what the concept of a “Reliable Technology” means for those in the Acquisition & Divestiture world and how they can use it.
While the term “Reliable Technology” came from SEC Reserve Reporting regulations, the concept behind it has much broader implications than just regulatory disclosures. A methodical evaluation and documentation of a “Reliable Technology” provides the high confidence in estimates of future oil and gas recoveries. In the world of acquisitions and divestitures, confidence in reserves directly relates to transaction values – giving the seller a better value and allowing the buyer to more fully justify the potential that was paid for.
So, Rod Sidle – Research Fellow, Aucerna and SPE Distinguished Lecturer – has put this paper together to help.
Topics covered in this paper include:
- Making your acquisitions and selling opportunities viable
- Quantifying the value of reduced uncertainty
- Examples of documented reliable technology to prove resources are present
- Capture value from a “reliable technology” from the buyer‘s or seller’s perspective