DETERMINATION OF BANK COLLATERAL VALUE

Watts & Associates, Inc. works with banks to determine Borrowing Base and Loan Value amounts, taking into account operational and market factors.  

• Borrowing Base & Loan Value Calculation
  

• Future Net Revenue Estimations on an Unrisked and Risked basis

   

• Risk Discussion & Application
  

 

• Current & Roll Forward Effective Dates at Base, Sensitivity, and Strip Price Decks
  

 

• Volumetric & Production Payment Transaction Analysis
  

 

• Deliverables Tailored to Each Specific Financial Institution Including;     

                    
                         i.    Lease Operating Statement Reconciliation

                         ii.   Results Presented With or Without Hedging 

                         iii.  Cash Flow Preparation if Needed

                         iv.  Reconciliation of Results from "Review" to "Review"

                         v.    E&P Loan Policy Preparation 

                         vi.  Borrowing Base Calculation per Institution Policy