Transactions and Case Studies:  $9,200,000 The Lower Alabama Gas District

Gas Reserve Valuation and Sale – In 2013 our team advised Lower Alabama Gas District in the valuation and sale of its “Participation Shares” in Production Sharing Agreements with Public Gas Partners.  Since its formation in 2004, PGP has made acquisitions and capital investments in excess of $500 million in primarily natural gas properties consisting of over 3,300 wells in 16 states producing in excess of 30,000 Mcf per day. We modeled and valued LAGD’s Participation Shares based on the numerous reservoir engineering reports associated with the current assets as adjusted for various costs and recovery assumptions, and compared our results to similar valuations prepared by PGP and the proposed purchaser. Additionally, we conducted a cost benefits analysis relative to LAGD retaining its Participation Shares.  We delivered a detailed 66 page report with respect to our valuation of the Participation Shares, variances from valuations prepared by others, and the cost benefits analysis for use by LAGD’s management and its governing body in their evaluation of the sale and negotiations with the purchaser.  We assisted in the negotiation of the sale with the prospective purchaser of LAGD’s Participation Shares in conjunction with LAGD’s management and its counsel, including making recommendations with respect to the acceptance or rejection of transaction terms. In summary, our valuation of the Participation Shares identified several material errors and other questionable assumptions in the valuations of others, and contributed directly to a significant savings of LAGD in its successful negotiations with the purchaser.

Natural Gas Reserve Acquisition Advisory and Financing – Our team successfully advised The Southeast Alabama Gas District and The Municipal Gas Authority of Georgia relative to the competitive sale of Tampa Electric Company’s interests in 700 wells and 200 billion cubic feet of coal bed methane gas reserves located in Alabama’s Black Warrior Basin. We identified the opportunity, reviewed the reservoir engineering reports associated with the reserves, developed the pricing models, advised on the bid process, and ultimately financed the acquisition for each entity.