Contact An Expert

Case Studies

Enhancing Asset Recovery through Diligent Planning

Back to Case Studies

Canada / 2016 / Asset Management

Maximum asset value recovery in receivership process

Target to increase production, reduce costs

Small and efficient management team

Successful sale for maximum return

Challenge

  • A client was the court appointed receiver for an insolvent E&P company, and was tasked with the management, operation and eventual sale of assets to maximize recovery for the secured creditor
  • An effective action plan was required to efficiently and cost effectively increase production, reduce operating costs, and package the assets for sale within the one-year receivership period

Solution

  • The Niven Fischer team was hired to create a capitally efficient budget and development plan to optimize and increase existing production, and reduce operating costs
  • We imbedded a small, focused team of experts to take over the day-to-day management of the field operations, engineering, land and accounting functions, which immediately reduced the monthly G&A costs for the client
  • Our team implemented a strategy to evaluate the company’s assets, verify the accuracy of the land and accounting records, and prepared the assets to be marketed for sale
  • Following a successful marketing effort, Niven Fischer prepared the requisite conveyance documentation, and closed the sale of the assets to an independent third party E&P company

Value

  • Niven Fischer’s successful implementation of its management plan enabled the client to show increased production revenue and reduced costs, which ultimately increased the value received for the insolvent company’s assets
  • Our small and efficient team allowed an instantaneous reduction in G&A costs for the client, further increasing the bottom-line value of the company