Arcadia Operating: Intelligent Well File Streamlines Acquisition Process

Transcription

1 Arcadia Operating: Intelligent Well File Streamlines Acquisition Process Arcadia Operating has a successful track record of growth by participating in the acquisition of operated oil & gas properties across Texas and Louisiana. The company planned to double its operated property base by participating in the acquisition of 67 wells. Arcadia needed a smart and efficient way to evaluate the large volume of data associated with these properties and streamline the well data onboarding process after the sale. 901 Main St, Suite 6260 Dallas, TX rex@archeio.com

2 Arcadia Operating: Intelligent Well File Streamlines Acquisition Process Synopsis Arcadia Operating has a successful track record of growth by participating in the acquisition of operated oil & gas properties across Texas and Louisiana. The company planned to double its operated property base by participating in the acquisition of 67 wells. Arcadia needed a smart and efficient way to evaluate the large volume of data associated with these properties and streamline the well data onboarding process after the sale. Background Arcadia Operating has a rich history as an oil & gas producer across North America. Headquartered in Dallas with field offices in East Texas, the company s operations are supported by more than 50 employees and subcontractors. Arcadia s current operations focus on infield development in the Talco Field of East Texas and deep, high-pressure gas wells located in South Texas. With additional production across the Texas and Louisiana Gulf coast, the company operates a total of 156 oil & gas wells which account for approximately 2,500 BOE per day. Additionally, the company manages nonoperated positions in 300 wells. Arcadia s proven ability to weather economic cycles in the petroleum industry positions the company to participate in strategic acquisitions of oil & gas properties. As evidence of this, the company recently increased its operations from 89 wells to 156 wells by participating in a single acquisition. Challenge During the recent acquisition, Arcadia needed to carefully evaluate the economic potential of 67 wells. To do this, the company would assess key asset information for each well, a process that had historically placed a tremendous burden on Arcadia s staff who needed to quickly analyze a large volume of well data. Based on its experience with previous acquisitions, Arcadia knew that well data could be sent by the seller in multiple formats, physical files, and disk drives with thousands of poorly organized electronic documents. The company s technical staff could spend weeks trying to find reliable data in order to clearly understand historical asset performance, processes, and strategies used by the seller. Arcadia had also encountered challenges in the past integrating the information for newly acquired wells with its own systems. Because effective management of producing wells requires up-to-date information, a disruption to the flow of well data can impact production and cash-flow. Poorly organized data and documents in physical and digital form had often impeded the onboarding and integration of critical well data. Evaluation of the wells under consideration began with the delivery of boxes full of paper documents from the seller. This well information combined with a limited amount of electronic well files represented more than 20,000 documents. Considering the difficulties it had faced in the past, Arcadia wanted to streamline the data evaluation and onboarding process not only for its current operated property growth but future acquisitions as well. Solution With the acquisition pending, Arcadia needed to organize the overwhelming amount of unstructured well data It had received. The company selected Archeio Technologies to address the short-term challenge of analyzing data related to the acquisition it Arcadia Operating 1

3 was participating in as well as the long-term goal to improve well information management on a daily basis within the company. Archeio deploys technology and processes designed specifically for oil & gas information management. Key goals of the Archeio solution include: 1) convert physical documents into digital files, 2) adequate context and data validation for structuring well information, and 3) the ability for users to intelligently search and quickly analyze document content. Because the majority of acquisition data had been sent by the seller in hardcopy form, a large volume of printed information would need to be digitized. Archeio s all-inclusive solution provided Arcadia with the services required for converting a wide range of document types such as drilling and completion reports, well logs, and production histories. Archeio s cloud-based intelligent well file software was used to provide Arcadia with centralized management of well information. More than 20,000 well files related to the acquisition, equivalent to 100,000 pages, were loaded into the new solution by leveraging Archeio s high-speed document processing and machine learning technology. Because many of the well files were merely scanned images of a physical document, the process used optical character recognition (OCR) to convert images into a machine readable form that could be indexed and searched by the solution. An important final step in the well file loading process was tagging each document with key information to describe its content, also known as metadata. However, such important information as well name or API number were inconsistently used and located within documents, making it difficult even for human readers to quickly identify metadata. Archeio s document processing technology applied smart algorithms to automatically extract required metadata, accelerating accurate classification of well files. Important to making well information easier to search and analyze was the adoption of a common well file taxonomy. Archeio provides out-of-the-box data taxonomies that are based on industry best practices but can be further configured to meet specific business needs. The collection of metadata and enforcement of minimum metadata requirements helped ensure that all documents fit into the common structure, and included state, county, well name, API number, and type of well. With key well data associated with the acquisition loaded and classified, Arcadia s staff were given access to Archeio s powerful search capabilities which could be accessed on any web-enabled device (such as tablets and smart phones). Leveraging the underlying metadata and taxonomy, users were able to quickly navigate to well information. Additional search features Measuring Success K % 75% Wells and their data tracked and managed Well related documents managed in the cloud High value document types easily accessible Employees and subcontractors with efficient data access Faster data onboarding during acquisitions Employee time saved preparing joint interest billings 2 " Archeio streamlines property acquisition because it enables easy access for the multiple parties involved in a purchase, giving us a common place to gather the data needed to evaluate an asset. - Rus Richards, President

4 Data onboarding and integration time was cut by 30%, helping to minimize well down time and ensure regulatory compliance. included keyword searching on OCR text, document preview, and search term highlighting within a document. The Archeio solution also enabled users at Arcadia to find wells of interest visually on a map. The GIS interface combines the location of wells with geospatial data (such as leases and pipelines) to provide an operational view of wells with easy drilldown to detailed well information. Additionally, the solution features sophisticated data analytics to provide important insight into the well information being managed. Results Equipped with Archeio s intelligent well file solution, Arcadia performed due diligence on the property under consideration in record time. With well information centralized and classified in digital form instead of physical boxes, the company s technical staff were able to spend less time searching for data and more time evaluating asset integrity. By structuring acquisition data and empowering users with easy ways to evaluate key well information, Arcadia gained the confidence it needed to make an informed decision, opting to participate in the property acquisition. And because asset information for the newly acquired wells was already loaded into Archeio s well file software, data onboarding and integration time was significantly reduced. This enabled critical well data and documents to remain available during the transition of producing assets, helping to minimize well down time and ensure regulatory compliance. Archeio s intelligent well file solution solved the shortterm challenge of providing efficient access to the newly acquired well data. Building on this success, Arcadia has adopted Archeio s software companywide as its permanent well information management solution. Archeio has migrated additional well files for the company s entire operation into the system which is Arcadia Operating 3

5 now being used to manage more than 40,000 documents (equivalent to 200,000 pages). Archeio s solution has bridged the information gaps that used to exist between systems and departments. Today, Arcadia uses Archeio s solution to manage data for 75 high value types of well information, including well logs, regulatory data, and engineering schematics. Arcadia s staff also benefit from easier access to large datasets such as seismic data. Establishing a common well file taxonomy and enforcement of minimum metadata standards has dramatically improved well information access and accuracy. From a desktop computer or mobile device, in the office or in the field, energy professionals at Arcadia are able to quickly find the well information they need through Archeio s intelligent search or map. The combination of metadata-driven search, document preview and search term highlighting has been an especially important feature, helping users rapidly identify the files they need to work with, all streamlined through one intuitive user interface. Archeio s intelligent well file solution has become an important tool for employees at Arcadia who leverage the software for many operational workflows. For instance, compliance staff benefit from easier assembly of the myriad types of well data required to submit a regulatory filing. Similarly, the time needed to prepare an approval for expenditure (AFE) package has been significantly reduced because key information is easily accessible, including well prognosis, maps, wellbore diagrams, and variance reports. The Archeio solution has also enabled Arcadia s accounting staff to spend as much as 75% less time preparing joint interest billings (JIB). an important capability as the volume of asset information that must be optimized continues to grow. For example, performing a data completeness check or enforcing minimum well file standards for regulatory compliance is expedited, helping to improve data quality and lower risks. Arcadia s continued success depends on its ability to make confident A&D, exploration, and production decisions. Through agile technology, document classification, and intelligent search, Archeio is delivering the well information Arcadia needs to drive informed decisions, reduce acquisition cycle time, and drive operational efficiency. Roadmap Arcadia is planning to extend its areas of operation beyond its core focus in Texas and Louisiana. This includes bringing additional production online in Kansas in the near future through new prospect development. The company plans to use the Archeio well file solution extensively for its drilling initiative to manage regulatory information and ensure compliance. The company also plans to use the Archeio solution to track well data and documents for its extensive portfolio of managed non-operated wells. And with hundreds of investors and a few key capital providers with interest across all of its operated wells, Arcadia wants to use the solution to share information with partners. Archeio is helping the company prepare for this large scale initiative by automating the process of importing joint interest billings from Arcadia s accounting system directly into its well file software. Arcadia expects to begin sharing well information, including JIBs and production reports, with working interest owners in the near future. At a glance, Arcadia s well information administrators can now see a breakdown of data across departments and regions using Archeio s analytic dashboards. With interactive charts and graphs, the solution provides valuable insight and analysis for well file management, 4

6 About Archeio Technologies Archeio Technologies improves the way oil & gas operating companies manage and use well information. The company s innovative approach leverages cloud computing, machine learning, and intelligent search technology to make unstructured well data and documents more accessible to energy professionals. Archeio s Skywell software improves exploration and production decisions by giving engineers, geoscientists, land and regulatory staff on-demand access to accurate well information on any device, including tablets and smart phones. Founded in 2014, Archeio is headquartered in Dallas with a growing customer base that includes large, publically traded companies and independent operators. The company s software is currently used to manage information for thousands of wells across North America. Arcadia Operating 901 Main St, Suite 6260 Dallas, TX rex@archeio.com 5