| Reservoir Engineering/ Special Projects |
| The estimation of reserves with a corresponding production profile and cash flow forecasts are the initial steps to providing many of our services. These work products form the basis for company year-end reserve reports, economic evaluations, investment decisions, bank lending requirements, planning and other client needs. H&A's evaluation experience includes primary production, secondary and enhanced recovery. We also perform supply studies for gathering systems, pipelines and gas processing plants. |
| Field and reservoir studies provide clients with detailed summaries of their properties' historical performance and future potential. These studies are useful to managers and operating personnel for purposes of understanding current producing zones and planning future capital investments. |
| H&A has consulted with lenders negotiating the funding of several large midstream and downstream investment projects. These assignments dealt with due diligence concerning assurance that there were adequate reserves and producing capacity to support pipelines, processing facilities and/or power plants requiring large capital investments. |
| H&A performs a Lower 48 Natural Gas Supply Study each year for a large downstream consulting firm. The project consists of breaking down Lower 48 gas supply into 16 major producing regions and vintaging the production from new wells and recompletions by year of first production starting in 1990. Mobile Bay is studied and forecast by itself due to the unique characteristics of the producing reservoirs in this area. Results of the study provide unique insight into trends of reserves per well, initial rates per well and decline rates. The output from our study is used as input data to our client's comprehensive model which forecasts gas supply, demand and price for the major consuming areas in the U.S. |
| This same methodology has been used to forecast future gas supplies in trends experiencing rapid exploration and development such as the Barnett Shale and Cotton Valley. |
| Hite & Associates Petroleum Engineers / Business Advisors |