| Statistical analysis done by Energy Spectrum Advisors Inc. (“ESA”) shows that a potential buyer or seller can use the property’s Proved R/P in order to determine the appropriate rate multiple and, thereby, the approximate sale price (R is defined as Total Proved Reserves, and P is defined as Current Net Daily Production Annualized.) ESA publishes a quarterly report that incorporates this analysis of the U.S. upstream M&A activity for the trailing 12 months (see bottom of page for links to past and present M&A Activity Reports.) Click here to see press releases for the oil and gas deals used in the most recent R/P analysis. The two graphs below show the results of our most recent analysis for both majority gas and majority oil transactions. Please note that our data set only includes publicly announced transactions. |
