BZO

Broker Price Opinions are used by Wall Street financiers to rapidly value large pools of real estate in a common framework.  The BetaZi Opinion™ (BZO) brings this same practice for the first time to the energy capital markets.

 

The BZO™ deliverable is a custom run of BetaZi probabilistic production forecasts on every well in a deal, delivered in a Spotfire interactive project file that allows users to instantly download, filter, and display results for rapid analysis and examination.

 

Because BetaZi’s physics-based, statistical forecasts create stable data points, it's possible to see every deal screen in the same normalized framework. Those data points are used to compute future rates and volumes, production targets, Estimated Ultimate Recovery (EUR) and Present Value (PV), as well as many other derived quantities including equivalent interest rates and time to payout.  


Every BZO contains these features:

 

  • Clickable map showing the location of every well in deal, including PUDs

  • BetaZi well forecast for each well

  • Chart showing EUR vs. Vintage (age)

  • Full forecast BOE, PV, Revenues and Cash Flow estimates

  • Full spread of uncertainty (P10 to P90) based on a pre-set price deck

  • Customizable OpEx metrics, tax rate and price deck

  • Single well economics for every declared type curve in the deal

  • Correct statistical aggregations for deal rollup value – p90s don’t simply add

  • Validation of results using holdback data (possible because of BetaZi’s unique testable and repeatable technology)

  • Export capability for any tables in project to all major economic modeling programs or Excel

  • All well production data

With BZO™ comes the ability to accurately assess and engineer risk.  Currently, oil and gas wells are considered risky assets, but they are no more unsure than other assets such as mortgages and technology stocks. In fact, they should be more secure because they are underlain by physical commodities and production is fundamentally governed by physics, not the ability of debtors to pay or the whims of consumers. BetaZi leverages this potential for engineered risk with calibrated uncertainty, solid bounds that delineate both the upside potential and the risk of an asset. Calibrated uncertainty is what makes BetaZi a disruptive technology and BZO a uniquely powerful tool for dealmakers.

Sample tables:

7-year forward valuation with $50 bbl and $3.00 mcf pricing.

7-year estimated total NRI value using $50 bbl/oil and $3 mcf/gas

Projected Revenues through 2024 based on all PUD locations being drilled before 2020.  P50 (median) case.

Price Sensitivity:  7-vear forward valuation with $45 bbl and $2.70 mcf pricing.