About the project.
The Abbadesse development is part of the San Marco exploration concession in the Po Valley that was granted to a UK Developer.
Following the initial exploration activities, natural gas was found in the field in the year 2005 and the proven reserves were assessed equal to 87 bcf (141 bcf proven).
The Developer had set up a cooperation agreement with an Italian natural gas trading company, being our customer, who took part in the investment and acquired interests in the development.
Following unexpected financial difficulties on the side of the Developer, the continuity of its operation was at risk and the Abbadesse field was pledged in favor of a major creditor bank.
Our scope was to assist our customer in the difficult task of preserving the value created by the project.
Approach to the task and results.
In the first instance we analyzed the contractual arrangements and evaluated the position of both sides. We provided our customer with advise about the way ahead options.
We assisted our customer in the complex negotiations with the developer, aimed at ensuring a smooth transaction, whereby we assisted the Developer in selling the whole gas field’s interests.
The transaction was to be completed on the basis of a fair value appraisal, that was prepared by us and negotiated with the Developer.
The outcome was very positive and both the Developer and our customer recovered their investment and materialized a significant value added after selling all the interests to a major oil & gas operator.