Asset and Portfolio Valuation

Assessing natural resources

Asset or portfolio valuation is the process of assessing the value of an organisation’s assets or a group of assets. Valuations apply to many different types of assets across industries. For RISC, this normally involves the estimation of subsurface natural resources with the most relevant industries including:

• Oil and gas (including LNG)
• Natural Hydrogen
• Geothermal
• Mineral extraction via aquifer brine refinement
• Infrastructure

Our approach

When conducting evaluations, one of our central objectives lies in determining the key value drivers. Through early identification of these factors, RISC streamlines the assessment process, allowing our experts to concentrate on what matters most. In collaboration with our clients, we tailor our approach to accommodate the characteristics unique to each evaluation.

Understanding uncertainty

Uncertainty is an inherent part of evaluating natural resource assets. RISC’s experienced team excels at providing independent estimates of these variables, helping our clients better understand asset and portfolio value.

The uncertainties associated with an asset depend on several factors including size, maturity and industry. Each variable affects the approach taken during evaluation. For a single asset, the key uncertainty may be a particular component of the resource estimate. For a large portfolio of assets, it could be important to high-grade assets by anticipated resource size or expense liabilities. Similarly, the considerations for exploration assets differ significantly to those of more mature assets in the development or production phases. When assessing major projects, schedule estimations can be one of the most important components.

Understanding uncertainty is essential to an effective asset valuation.

What is involved in asset valuation?

Depending on the type of assets in a portfolio, valuations may include:

• Exploration valuation, prospect assessment
• In-place resource estimates
• Development plans, costs and schedules
• Production profiles and recoverable resources
• Economic assessment and evaluation
• Commercial assessment and risk
• Environment, Social and Governance (ESG)
• Decommissioning, abandonment, and rehabilitation

We are experienced at delivering valuations across the full life cycle of assets from exploration and appraisal to development, production and abandonment.

Certification

If required, RISC can advise on appropriate classification of resource estimates and offer independent certification.