The Importance of Investment Recovery...

Sam Reynolds

Overview

My Experience

Mature Assets

Resource Plays

Training New Hires

My Experience

Marathon Oil’s Rocky Mountain Operations (RMO)

How I got involved in investment recovery

Start from scratch

Hardships

Moving forward and roll out

Figures: Over 30 lots sold

Sales occurred across 7 fields

…in a Mature Asset

Test Projects Repair & Maintenance (R&M)

a surplus producer

Surplus – Good Keeps necessary parts on

hand Utilizes company’s previous

investment

….. and Bad Limitations Expectations

Investment Recovery: Sets a precedent to utilize on

hand material in an effective manner

Establishes a process that can be measured and monitored

Cleans up field Reduces unneeded inventory

and equipment

Brings cash back to Company

…in a Resource Play

Maintaining performance in one region while another is starting up

Communication

Utilize material intercompany

Take advantage of investments already made

Redeploy useful equipment where applicable –Extends the value of the material

Capitalize on opportunity of market price

Pumping Units, Casing, Tubing

Start Investment Recovery Program in the beginning

Facilities, Drilling, Warehouses and Special Projects–One-off or replicating

….Training New Hires

Understand surplus Positive and negative

Importance of communication

Idle surplus is lost cash

Excess surplus Eye sore Loss of value Takes up space Requires man hours to manage Creates potential safety hazards

Starting a program Develop a process – prove process

Advantages Ease of sales Larger auction group All inclusive fee(s) including marketing Fee(s) only charged on auction value

7

Steps to Dispose of Surplus Equipment