EP1313665A1

EP1313665A1 - Web-based system and method for evaluating oil and gas properties

Info

Publication number: EP1313665A1
Application number: EP01961990A
Authority: EP
Inventors: Clifford Seltzer
Original assignee: GE Capital Services Structured Finance Group Inc
Current assignee: GE Capital Services Structured Finance Group Inc
Priority date: 2000-08-09
Filing date: 2001-08-08
Publication date: 2003-05-28
Also published as: AU2001283208A1; EP1313665A4; WO2002012113A1

Abstract

An Oil and Gas Valuation System includes a fully integrated web-based interactive automated database that determines a valuation of Oil and Gas Properties (90) for a business entity. The system enhances communication between the business entity and its customers by providing the price range of a specific Oil and Gas property (90) based on expected cash flow which includes revenues and expenses. The Oil and Gas Valuation System streamlines processes, speeds up initial valuation and simplifies business entity's review process.

Description

WEB-BASED SYSTEM AND METHOD FOR EVALUATING OIL AND GAS PROPERTIES

BACKGROUND OF THE INVENTION

This invention relates generally to evaluating oil and gas properties, and more specifically, to web-based methods and systems for providing valuation of oil and gas properties based on specific criteria established by a business entity.

A business entity typically conducts many levels of review when determining whether to participate in financing a specific property. Currently, a business creates an information package that includes various supporting documents including a detailed analysis justifying the financing of the property. After the documents are assembled and organized, they are circulated for final approval to various employees at varying levels of authority including corporate executives.

Known management methods and systems involving financing of the properties, or for that matter any financing, have several disadvantages. For example, current management methods and systems are largely paper-based and time consuming to complete. Typically, during a finance transaction, multiple groups of employees participate in discussing the potential leads with various customers, compiling data, evaluating data and finally developing recommendations to senior management. Often, it is a challenge to compile the information pertaining to various leads, and organize and classify these leads on the motivation of the customers. Since most of the current methods and systems are paper based, there are also substantial delays in following up with the customers regarding their specific issues and concerns. Failure to follow-up in a timely manner may result in loss of customer loyalty and ultimately lost revenues.

BRIEF SUMMARY OF THE INVENTION

An Oil and Gas Valuation System (OGVS), which is a fully integrated on-line web-based tool, is described herein. The OGVS is a centralized and integrated business tool that determines valuation of the Oil and Gas Properties for any business entity. The tool enhances the lines of communication between the business entity and its customers by providing a price range for a specific Oil and Gas property based on expected cash flow which includes revenues and expenses. The OGVS streamlines processes, speeds up initial valuation and simplifies the business entity's review process. It also eliminates the properties which do not have merit from the business acquisition perspective. These features are important, particularly in the fast changing E-business environment.

The system captures cash flow related information and determines the valuation range for the customer. In one exemplary embodiment, the system utilizes a

Structured Query Language (SQL) server database with a client user interface front- end for administration and a web interface for standard user input and reports. The OGVS stores cash flow related data in the database in several separate sections and processes information based on a pre-established algorithm to determine the price range for the property as well as the property's strategic fit from the finance perspective. The OGVS provides a formalized process to manage the potential deal/acquisitions relating to oil and gas properties to achieve full compliance. The OGVS also provides a cost benefit to a business entity by streamlining the management process associated with automatically processing the potential leads received from its customers through a web site.

In one aspect, the present invention is a method for determining a current valuation of an oil and gas property on-line using a web-based system including a server system coupled to a centralized interactive database and at least one client system. The method includes the steps of receiving information from a client system, storing the information into a centralized database, processing the information, and providing a valuation of a property based on current and future market commodity pricing conditions. The method involves providing access only to the authorized users by authenticating users through a valid user identification and a password. The server system is connected to a centralized interactive database for receiving oil and gas property information which among others includes receiving a Case Name, a specific selection regarding the user's current situation, an effective date, a total discounted cash flow value by Reserve Class and Location, an Annual summary cash flow by Reserve Class, Expense-related information, an Average Production Tax Rate, estimated average price differentials including all adjustments, number of wells in the first full year of production, a daily rate in numbers of barrels or annual volumes in thousand barrels per year, an economic year of property, and an Expense Escalation Rate.

BRIEF DESCRIPTION OF THE DRAWINGS

Figure 1 is a simplified block diagram of a Oil and Gas Valuation System (OGVS) in accordance with one embodiment of the present invention;

Figure 2 is an expanded version block diagram of an exemplary embodiment of a server architecture of the OGVS;

Figure 3 shows a configuration of a database within a database server of a server system with other related server components;

Figure 4 is an exemplary embodiment of a user interface welcoming the user to the GE Capital Structured Finance Group Oil and Gas Reserve Valuator log-in page;

Figure 5 is an exemplary embodiment of an introduction page displayed to the user after the user has completed an initial log-in process and the user has been authenticated by the server system;

Figure 6 is an exemplary embodiment of a user interface screen identifying the first step involved in determining the valuation of the Oil and Gas Property;

Figure 7 is an exemplary embodiment of a web-based screen downloaded by the server system onto the client system when a user selects a hypertext link "Next" located at the bottom of the user interface of the OGVS shown in Figure 6; Figure 8 is an exemplary embodiment of a web-based screen depicting a third step utilized to input Production Volumes;

Figure 9 is an exemplary embodiment of a web-based screen depicting a fourth step utilized to input Production Expenses;

Figure 10 is an exemplary embodiment of a user interface depicting a fifth step utilized to provide Case Results;

Figure 11 is an exemplary embodiment of a user interface depicting a Case Summary pertaining to a specific Oil and Gas Property based on data entered by the user;

Figure 12 is an exemplary embodiment of a Feedback Page downloaded by the server system when the user selects a "Valuation Feedback" button shown in Figure 10;

Figure 13 is an exemplary embodiment of a "We'll Call You" Page downloaded by the server system when the user selects a "We'll Call You" button;

Figure 14 is an exemplary embodiment of an administration screen layout summarizing information relating to a specific Oil and Gas Property; and

Figure 15 is an algorithm utilized by the Oil and Gas Valuation System (OGVS).

DETAILED DESCRIPTION OF THE INVENTION

Exemplary embodiments of systems and processes that facilitate integrated network-based electronic reporting and workflow process management related to the Oil and Gas Valuation System (OGVS) are described below in detail. The systems and processes facilitate, for example, electronic submission of information using a client system, automated extraction of information, and finally providing a web-based valuation of a property based on current and future market commodity pricing conditions. The systems and processes are not limited to the specific embodiments described herein. Components of each system and each process can be practiced independent and separate from other components and processes described herein.

Each component and process also can be used in combination with other components and processes.

Figure 1 is a simplified block diagram of an Oil and Gas Valuation System (OGVS) 10 including a server system 12 and a plurality of client systems 14 connected to server system 12. In one embodiment, client systems 14 are computers including a web browser, such that server system 12 is accessible to client systems 14 via the Internet. Client systems 14 are interconnected to the Internet through many interfaces including a network, such as a local area network (LAN) or a wide area network (WAN), dial-in-connections, cable modems and special high-speed ISDN lines. Client systems 14 could be any device capable of interconnecting to the Internet including a web-based phone or other web-based connectable equipment. A database server 16 is connected to a centralized database 20 containing revenues and expenses related information on a variety of properties, as described below in greater detail. In one embodiment, centralized database 20 is stored on server system 12 and can be accessed by potential users at one of client systems 14 by logging onto server system 12 through one of client systems 14. In an alternative embodiment, centralized database 20 is stored remotely from server system 12.

Figure 2 is an expanded version block diagram of an exemplary embodiment of a server architecture of an Oil and Gas Valuation System (OGVS) 22. Components in system 22, identical to components of system 10 (shown in Figure 1), are identified in Figure 2 using the same reference numerals as used in Figure 1. System 22 includes server system 12 and client systems 14. Server system 12 further includes database server 16, an application server 24, a web server 26, a fax server 28, a directory server 30, and a mail server 32. A disk storage unit 34 is coupled to database server 16 and directory server 30. Servers 16, 24, 26, 28, 30, and 32 are coupled in a local area network (LAN) 36. In addition, a system administrator's workstation 38, a user workstation 40, and a supervisor's workstation 42 are coupled to LAN 36. Alternatively, workstations 38, 40, and 42 are coupled to LAN 36 via an Internet link or are connected through an intranet.

Each workstation, 38, 40, and 42 is a personal computer having a web browser. Although the functions performed at the workstations typically are illustrated as being performed at respective workstations 38, 40, and 42, such functions can be performed at one of many personal computers coupled to LAN 36. Work stations 38, 40, and 42 are illustrated as being associated with separate functions only to facilitate an understanding of the different types of functions that can be performed by individuals having access to LAN 36.

In another embodiment, server system 12 is configured to be communicatively coupled to various individuals or employees 44 and to third parties, e.g., internal or external auditors 46 via an ISP Internet connection 48. The communication in the exemplary embodiment is illustrated as being performed via the Internet. However, any other wide area network (WAN) type communication can be utilized in other embodiments, i.e., the systems and processes are not limited to being practiced via the Internet. In addition, and rather than a WAN 50, local area network 36 could be used in place of WAN 50.

In the exemplary embodiment, any authorized individual or an employee of the business entity having a workstation 54 can access the Oil and Gas Valuation System (OGVS) to input necessary information in a pre-determined format for evaluation. The basic information solicited by the system involves receiving oil and gas property related information which among others includes receiving a Case Name, a specific selection regarding the user's current situation, an effective date, a total discounted cash flow value by Reserve Class and Location, an Annual summary cash flow by Reserve Class, Expense-related information, an Average Production Tax

Rate, estimated average price differentials including all adjustments, number of wells in the first full year of production, a daily rate in barrels or annual volumes in thousand barrels per year, an economic year of property, and an Expense Escalation Rate from client system 14. Once the necessary information is received, server system 12 processes information through an algorithm to compute the possible range of values for a specific property as well as a strategic fit index for the customer. The information is downloaded by server system 12 onto client system 14 either for displaying or for printing purposes.

One of the client systems includes a senior manager's workstation 56 located at a remote location. Work stations 54 and 56 are personal computers having a web browser. Also, work stations 54 and 56 are configured to communicate with server system 12. Furthermore, fax server 28 communicates with employees located outside the business entity's and any of the remotely located client systems, including a client system 56 via a telephone link. Fax server 28 is configured to communicate with other client systems 38, 40, and 42 as well.

Figure 3 shows a configuration of database 20 within database server 16 of server system 12 (shown in Figure 1). Database 20 is coupled to several separate components within server system 12, which perform specific tasks.

Server system 12 includes a collection component 64 for collecting information from users into centralized database 20, a tracking component 66 for tracking information, a displaying component 68 to display information, a receiving component 70 to receive a specific query from client system 14, and an accessing component 72 to access centralized database 20. Receiving component 70 is programmed for receiving a specific query from one of a plurality of users. Server system 12 further includes a processing component 76 for searching and processing received queries against data storage device 34 containing a variety of information collected by collection component 64. An information fulfillment component 78, located in server system 12, downloads the requested information to the plurality of users in the order in which the requests were received by receiving component 70. Information fulfillment component 78 downloads the information after ^' the information is retrieved from data storage device 34 by a retrieving component 80.

Retrieving component 80 retrieves, downloads and sends information to client system

14 based on a query received from client system 14 regarding various alternatives. Retrieving component 80 further includes a display component 84 configured to download information to be displayed on a client system graphical user interface and a printing component 88 configured to print information. Retrieving component 80 generates various reports requested by the user through client system 14 in a pre-determined format. System 10 is flexible to provide other alternative types of reports and is not constrained to the options set forth above.

Database 20 is divided into several sections to organize the information. The information is linked to owner's name, parcel number or other legal ownership tracking information and various other parameters. For example, in an exemplary embodiment, database 20 is divided into an Oil and Gas Property

Information Section (OGPIS) 90, a Variable Input Information Section (VIIS) 92 including information on economic indicator information such as Forward Price Curve, a Strategic Fit Criteria Information Section (SFCIS) 94, a Property Owners' Information Section (POIS) 96, and a Valuation Information Section (VIS) 98. These sections within database 20 are interconnected to update and retrieve the information as required to cater to members of the management team responsible for implementing overall business acquisition strategy and its execution, business leaders and managers responsible for managing acquisitions of oil and gas properties, and administrative department responsible for access and security of the OGVS.

The architectures of system 10 as well as various components of system 10 are exemplary only. Other architectures are possible and can be utilized in connection with practicing the processes described below.

I. OVERVIEW OF OIL AND GAS EVALUATION SYSTEM

The Oil and Gas Valuation System (OGVS) is an interactive reserve valuator to compute the value of the reserve to help a business entity to provide equity capital to the property owner through joint acquisition or monetization offerings. The system permits the property owners or often called property operators of oil and gas properties to help focus on their core capabilities, managing the property, rather than spending their time in determining the value of their property by contacting several potential buyers and soliciting bids from them for the sale of their property.

The system allows users to quickly estimate a current valuation of their oil and gas properties based on criteria set by the business entity. During the process of establishing a valuation, the user is prompted to answer a few simple questions pertaining to his property and asked to input summarized annual production and expense data. The information required from the user is often available in the property's summarized annual production report, summary engineering report, or economic runs report. Once the information is submitted, server system 12 downloads a valuation range and an index reflecting a strategic fit to the user. The valuation provided to the user is based on forward commodity price curves and current and future market pricing conditions. Additionally, the business entity updates a forward price curve, a current status relating to business entity's ability to either provide loans on the properties or financial strength to acquire properties based on current cash flow, and other economic variables such as money costs. Server system

12 allows access to the system only if the user is registered. If the user is not a registered user, the system provides an option to the user for quick and easy registration. System 10 saves the data allowing the user to make changes or reevaluate the property when market conditions change. In one embodiment, system 10 operates optimally when cases evaluated are those cases with a predominance of

PDP values. In another embodiment, the user is permitted to provide feedback through system 10.

m. DETAIL WEB-SYSTEM FUNCTIONALITY AND REPORTING CAPABILITIES

Figures 4 through 14 are exemplary embodiments of screen displays depicting the OGVS functionality. These various embodiments describe one specific way of practicing invention, displaying data or printing reports. However, one skilled in the art would recognize that there are multiple possible combinations of organizing the data, displaying the data on the screen as well as printing the data in various reporting formats which still express the same essential matter and process steps. Figure 4 is an exemplary embodiment of a user interface 150 welcoming the user to the GE Capital Structured Finance Group Oil and Gas Reserve Valuator log-in page. The user is prompted to enter an e-mail address 154 and a password 160 associated with the user identification. A directory of registered users is maintained as part of database 16 (shown in Figure 1) and if a user wishes to become a registered user, he or she must contact a site manager, who will confirm that the person should have access to the site before issuing a log-in name and a password. As registered users log-in by submitting 162 the information to server system 12 (shown in Figure 1), OGVS 10 authenticates the user before allowing the access. The OGVS is a secured system. The site in the present embodiment can be utilized as an intranet or can be utilized across various networks on the Internet. If the user does not desire to determine the valuation of the reserve through the on-line system offered through a web site, the user selects a navigational button entitled "Click Here . . . We'll Call You!" 164. In one embodiment of the invention, the password utilized by the OGVS is case sensitive and requires that it be matched completely before the user is provided access to the system.

User interface 150 is sometimes referred to as a main page of OGVS 10. As the user logs in with the user's password, the user is navigated through a series of screens or user interfaces to complete the evaluation of a specific property. The top frame utilizes ten different navigational buttons to guide the user through these various alternatives at a given time. These sections are accessed through separate hypertext links such as a "GE Home" 170 hypertext link, a "SFG Home" 174 hypertext link, an "O & G Home" 176 hypertext link, a "Products" 180 hypertext link, an "About Us" 184 hypertext link, a "Transactions" 188 hypertext link, a "Market Commentary" 190 hypertext link, a "Feedback" 194 hypertext link, a "GEPX" 198 hypertext link and a "Log-In" 200 hypertext link. Each navigational button or a hypertext link permits the user to get back to the screen from any other screen in the system.

Figure 5 is an exemplary embodiment of an introduction page 220 displayed to the user after the user has completed the initial log-in process and the user has been authenticated by server system 12 (shown in Figure 1). The user is provided initial information on the process including "Things to Know" 222 before the user processes to the next step. From introduction page 220, the user has an option to either select a new case input page by selecting a hypertext link entitled "Enter New Case" 224 or edit the previously stored information file regarding a specific reserve by selecting a hypertext link "Edit Previous Case" 230.

Figure 6 is an exemplary embodiment of a user interface screen identifying the first step 234 involved in determining the valuation of the Oil and Gas Property. User Interface Screen 234 is downloaded by server system 12 onto client system 14 when a user selects a hypertext link "Enter New Case" 224 (shown in

Figure 5). Through screen 234, the user enters the required data into the system efficiently and effectively. The user enters a descriptive name to his case for future reference under a "Case Name" 238 and indicates his current situation by selecting a plurality of fields denoting various possible situations. In an exemplary embodiment, these situations are: "Looking to Buy" 240, "Looking to Monetize" 244, "Looking to

Sell" 248, and "None of the Above" 250. A specific situation identified 254 by the user enables the business entity to prioritize the customer issues and help establish a strategy for future follow-ups. The user further provides an effective date 260 through a pull down menu as it relates to his current situation or motivation underlying the determination of the value for his reserve. The user has an option to move to the next screen by selecting a button "Next" 264 or clear the entries the user just made by selecting a "Clear" 266 button.

Figure 7 is an exemplary embodiment of a web-based screen 270 downloaded by server system 12 on to client system 14 when a user selects a hypertext link "Next" 264 (shown in Figure 6) located at the bottom of user interface

234 of OGVS (shown in Figure 6). Screen 270 displays various case parameters 274 that are required to be submitted by the owner/ manager of the Oil and Gas Reserve, before system 10 provides a feedback identifying a valuation range. In an exemplary embodiment, this step of the process 278 is referred to as a Step 2. The user is required to enter a total forecasted Discounted Cash Flow (DCF) value 280 by reserve classifications 282. Reserve classification 280 includes wells that are proved, developed and producing (PDP) 284, proved, developed and non-producing (PDNP) 288, and proved, undeveloped (PUD) 290 against reserves. The user inputs the various DCF value against each type of the reserve class. Based on the forecast, or estimates, the user enters the value in dollars 294 against each location 296 or selects a box 298 identifying that the user does not know any of the above amounts or estimates. The user then enters a discount rate used in computing the discounted cash flow through a pull down menu 300.

Under expenses 304 segment of the user interface, the user responds to several questions either by answering "Yes" or "No" through a plurality of fields 308 and/or by entering a specific number. In an exemplary embodiment, the user is required to address whether the data provided is already escalated 310 and if so, what is an escalation rate 312 in a percentage. Additionally, the user is required to clarify whether the Council of Petroleum Accounting Society (COP AS) charges are included in the expense data 316 and if so, the user is expected to enter the user's estimated percentage of operated properties 320. Through a plurality of fields, the user answers the question whether the user knows an Average Production Tax Rate in percentage 324 pertains to his specific situation.

The information relating to Pricing Offsets 330 for Oil in Dollars per Barrel ($ / bbl) 334, for Gas in Dollars per Thousand Cubic Feet ($/MCF) 336, and for

Natural Gas Liquids in Dollars per Barrel ($ / bbl) 338 is entered by the user. Screen 270 also solicits information pertaining to a number of net wells 340 in the first full year of production. A "Next" button 344 downloads the user interface pertaining to step 3 of the process which solicits information pertaining to Production Volumes. A "Back" button 346 will take the user to the previous step of the process in case the user wishes to revise the previously entered data. A "Clear" button 348 clears any newly entered information.

Figure 8 is an exemplary embodiment of a web-based screen 350 depicting the third step of the process for inputting Production Volumes 354. The user is allowed to enter data for Oil 356, Gas 358 and Natural Gas Liquids (NGLs) 360 for any or all reserve classes out of PDP 362, PDNP 364 or PUD 368. The user is requested to enter the daily rate in barrels per day (bbls/ day) 370 or annual volume in thousand of barrels (Mbbls) 374. The data is entered on a year by year 376 basis. Through screen 350, the user enters the data into the system efficiently and effectively. Some portion of the user interface is shaded 380 to represent minimum data required from the user. The user is prompted to enter information relating to an Economic Life of Property in years 382. A "Next" button 384 downloads the user interface pertaining to step 4 of the process which solicits information pertaining to Production Expenses. A "Back" button 386 will take the user to the previous step of the process in case the user wishes to revise the previously entered data. A "Clear" button 390 clears any newly entered information.

Figure 9 is an exemplary embodiment of a web-based screen 400 depicting the fourth step of the process for inputting Production Expenses 402. For example, the user is requested to supply an Expense Escalation Rate 410, to answer whether COP AS is included or not 412, provide an Average Production Tax Rate 418,

Operating Expenses ($M) 422 together with a Capital Expenses 428 for PDP 430, PDNP 434 and PUD 438, as appropriate, for each and every year 444 beginning Year 2000. In an exemplary embodiment, the screen is shaded 450 to denote the required fields. A "Next" button 454 downloads the user interface pertaining -to step 5 of the process which provides information relating to Case Results. A "Back" button 456 will take the user to the previous step of the process in case the user wishes to revise the previously entered data. A "Clear" button 460 clears any newly entered information.

Figure 10 is an exemplary embodiment of a user interface 470 depicting the fifth step of the process providing Case Results 474. This step involves displaying a Valuation Range 478 for the property on which information has been submitted to server system 12 (shown in Figure 1) together with a User Name 480, a Case Name 482, a Case Id Number 486, and a Case Date 488. Server system 12 further displays an index between zero and ten denoting a strategic fit 490 based on an Operations 492 and a Location 494 of the Oil and Gas Reserve. When the user selects a "Case Summary" button 496, the system downloads and displays a Case Summary information (shown in Figure 11, below) through a separate user interface. A "Back" button 498 will take the user to the previous step of the process in case the user wishes to revise the previously entered data. A "Valuation Feedback" button 500 downloads a separate user interface (shown in Figure 12, below) through which the user submits his name, phone number, e-mail address and other pertinent comments to the Structured Finance Group pertaining to the valuation provided through on-line system.

Figure 11 is an exemplary embodiment of a user interface 510 depicting a Case Summary 512 pertaining to a specific Oil and Gas Property based on the data entered by the user. When the user selects "Case Summary" button 496

(shown in Figure 10), the system downloads and displays Case Summary information 512 on to client system 14. The information includes a User Name 520, a Case Name 522, a Case Identification Number, 524, a Case Date 526, and a Valuation Range 530. Server System 12 (shown in Figure 1) further displays a Location 540, an Index identifying Operations Fit Index 542, a Location Fit Index 544 between Zero to ten, a

Reserves Fit Index 546 between Zero to Ten, Owner's Situation or motivation status 548, an Effective Date 550, a. Total Discounted PDP Cash Flow 554, a Total Discounted PDNP Cash Flow 556, a Total Discounted PUD Cash Flow 558, a User Discount Rate 560, an Expense Escalation Rate 564, a status on COP AS 566, an Average Production Tax Rate 568, Oil Offsets 572, Gas Offsets 574, and NGL Offsets

578. A "Print" button 580 permits the user to print the data on an attached printer or a network printer. In another exemplary embodiment (not shown), the data can be sent as an attachment to an e-mail. A "Close Window" 584 button permits the user to submit the data to server system 12 for future retrieval. In another exemplary embodiment, closing the window 584 delivers the information from the client system

14 (shown in Figure 1) to server system 12 (shown in Figure 1) located at the Structured Finance Group's Oil and Gas Department for individualized negotiation and/ or processing. In yet another embodiment of the invention, a message (not shown) indicating that one of the representative from the Structured Finance Group's Oil and Gas Department will follow up with the user is downloaded by the server system as a confirmation to a successful closing of the window. Figure 12 is an exemplary embodiment of a Feedback Page 590 downloaded by the server system when the user selects "Valuation Feedback" button 500 (shown in Figure 10). Through user interface 590, the user submits his name 592, a phone number 594, an e-mail address 596 and other comments 598 to the Structured Finance Group pertaining to the valuation provided through the on-line system. A

"Submit" button 600 directs the server system to transmit the data to a pre-designated electronic location within the Structured Finance Group. A responsible individual follows-up on all feedback received from various users and contacts individual users to address their specific issues.

Figure 13 is an exemplary embodiment of a "We'll Call You" Page

610 downloaded by server system 12 when the user selects "We'll Call You" button 164 (shown in Figure 4) or from any other user interface showing the hypertext link "We'U Call You". Through user interface 610, the user submits the user's name 612, a company name 614, a phone number 616, an e-mail address 618 and other comments 620 through on-line system. A "Submit" button 624 directs the server system to transmit the data to a pre-designated electronic location within the Structured Finance Group. A responsible individual follows-up on all feedback received from various users and contacts individual users to address their specific issues.

Figure 14 is an exemplary embodiment of an administration screen layout 630 summarizing the important information relating to a specific oil and Gas Property. The screen displays OGRN Administration Information 634 including a last update date 638, various Pricing Parameters 648, Pricing Data 660, Risk Parameters 670, SFG Parameters 680 and finally another set of Risk Parameters 690 identifying the property's depreciation 692 and depletion 694. A "Print" button 696 is provided for printing the inputted data and a "Reset" button 698 is provided to clear the entries inputted by the user. A "Submit" 700 submits the inputted data to server system 12 for processing.

Figure 15 is an algorithm 800 of the Oil and Gas Valuation System (OGVS). Under the web-based system 10 (shown in Figure 1), the user accesses 810 home page or often referred to as a main page of the web site through client system 14 (shown in Figure 1). From the main page, the user logs-in to server system 12 with the user identification information and the password. In one embodiment, client system 14, as well as server system 12, are protected from access by unauthorized individuals through an authentication process. After server system authenticates 812 the user, server system 12 (shown in Figure 1) downloads 820 and displays 830 several options. The user selects a specific option out of several options. In one embodiment, selecting 840 option involves either opening a new file to enter information regarding the new case or open an existing file to edit the previous case already existing in the system. Once the user selects 840 a specific option out of various hypertext links, the request is sent to server system 12. Transmitting the request 842 involves sending a request to download a specific option input form request. Transmitting 842 is accomplished either by the click of a mouse or by a voice command. Once server system 12 receives 850 the request, server system 12 accesses 860 the database server 16 and retrieves 864 pertinent information from database 20 (shown in Figure 1). The requested information is downloaded 870 to client system 14 from server 12 in a pre-determined input form. The user inputs 872 the information requested in a pre-determined format. Server system 12 stores 878 the information. The user submits the information to server system 12 for processing 890. Server system 12 processes the information provided and retrieves 892 the requested information from database 20 to the user. The retrieved information involves retrieving valuation information as well strategic fit index based on a pre- established criteria. The information is further downloaded 900 by server system 12. The requested information is provided 904 by either displaying 910 the information on the user's display or by printing 912 it on an attached or a remote printer. Database 20 is updated 930 with new or revised information by the user prior to exiting 950 from system 10.

While the invention has been described in terms of various specific embodiments, those skilled in the art will recognize that the invention can be practiced with modification within the spirit and scope of the claims.

Claims

WHAT IS CLAIMED IS:

1. A method for determining a current valuation of oil and gas property using a web-based system including a server system coupled to a centralized interactive database and at least one client system, said method comprising the steps of:

receiving information from a client system;

storing the information into a centralized database;

processing the information; and

providing a valuation of a property based on current and future market commodity pricing conditions.

2. A method according to Claim 1 wherein said step of receiving information further comprises the steps of:

completing a user registration process;

and obtaining a valid user identification and a password for authentication purpose.

3. A method according to Claim 1 wherein said step of receiving information further comprises the step of receiving at least one of a Case Name, a specific selection regarding the user's current situation, an effective date, a total discounted cash flow value by Reserve Class and Location, an Annual summary cash flow by Reserve Class, Expense-related information, an Average Production Tax Rate, estimated average price differentials including all adjustments, number of wells in the first full year of production, a daily rate in barrels or annual volumes in thousand barrels per year, an economic year of property, and an Expense Escalation Rate.

4. A method according to Claim 3 wherein said step of receiving information further comprises the step of receiving information directly through the client system.

5. A method according to Claim 3 wherein said step of receiving information further comprises the step of receiving information in a pre-determined format.

6. A method according to Claim 3 wherein said step of receiving information further comprises the step of submitting information through a pull down menu.

7. A method according to Claim 3 wherein said step of receiving information further comprises the step of submitting information by selecting at least one option from a plurality of fields.

8. A method according to Claim 1 wherein said step of storing information further comprises the step of organizing information into different sections of the database for easy retrieval of the information.

9. A method according to Claim 1 wherein said step of storing information further comprises the step of storing information to provide the user an ability to make changes or revalue when market conditions change.

10. A method according to Claim 1 wherein said step of storing the information into a centralized database further comprises the step of storing information against unique identifiers.

11. A method according to Claim 1 wherein said step of storing the information into a centralized database further comprises the steps of storing at least one of a Case Name, a specific selection regarding the user's current situation, an effective date, a total discounted cash flow value by Reserve Class and Location, an

Amiual summary cash flow by Reserve Class, Expense related information, an Average Production Tax Rate, estimated average price differentials including all adjustments, a number of wells in the first full year of production, a daily rate in barrels or annual volumes in thousand barrels per year, an economic year of property, and an Expense Escalation Rate.

12. A method according to Claim 1 wherein said step of storing the information into a centralized database further comprises the step of storing information in a pre-determined format.

13. A method according to Claim 1 wherein said step of storing information further comprises the steps of:

tracking information on a real time basis; and

updating stored information by adding the new information to the centralized database on a real time basis to provide current information to the user upon a request.

14. A method according to Claim 13 wherein said step of updating the centralized database further comprises the steps of:

adding and deleting information; and

editing the information.

15. A method according to Claim 13 wherein said step of updating the centralized database further comprises the step of entering information on-line.

16. A method according to Claim 15 wherein said step of entering information further comprises the step of entering information at least through one of a voice activation command and a device connected to the client system.

17. A method according to Claim 1 wherein said step of processing information further comprises the steps of:

analyzing the information received from the client system; computing a valuation range based on a set of criteria established by a business entity; and

identifying an attractiveness index between zero to ten.

18. A method according to Claim 1 wherein said step of providing a valuation of a property based on current and future market commodity pricing conditions further comprises the steps of:

downloading a valuation range based on a set of criteria established by a business entity from a server system;

downloading an attractiveness index between zero to ten; and

displaying the valuation range and the attractiveness index.

18. A method according to Claim 1 wherein said step of providing a valuation of property information further comprises the step of printing requested information in a pre-determined format.

19. A method according to Claim 1 wherein said step of providing a valuation of property information further comprises the step of accepting an inquiry from a user.

20. A method according to Claim 1 wherein said step of accepting an inquiry further comprises the steps of:

displaying information on the client system identifying a variety of options; and

receiving an inquiry from the client system regarding at least one of an option out of all the displayed options.

21. A method according to Claim 20 wherein said step of receiving an inquiry from the client system further includes the step of submitting a request through pull down menus.

22. The method according to Claim 18 wherein said step of displaying further includes the step of displaying an HTML document downloaded by the server system.

23. A method according to Claim 18 wherein said step of displaying further comprises the step of displaying at least one alternative from various alternatives available to the user.

24. A method according to Claim 18 wherein said step of downloading further comprises the steps of:

accessing the centralized database;

searching the database regarding the specific inquiry;

retrieving information from the database; and

transmitting the retrieved information to the client system for display by the client system.

25. A method according to Claim 18 wherein said step of printing requested information in a pre-determined format further comprises the steps of printing the valuation range and the attractiveness index.

26. The method according to Claim 1 wherein the client system and the server system are connected via a network and wherein the network is one of a wide area network, a local area network, an intranet and the Internet.

27. A web-based system for determining a current valuation of oil and gas property, said system comprising:

a client system comprising a browser;

a data storage device for storing information; and a server system configured to be coupled to said client system and said database, said server system further configured to:

receive information from a client system;

store the information into a centralized database;

process the information; and

provide a valuation of a property based on current and future market commodity pricing conditions.

28. A system according to Claim 27 wherein said client system is further configured with:

a displaying component for displaying a variety of options to a user; and

a sending component to send an inquiry to the server system so that the server system can process and download the requested information to the client system.

29. A system according to Claim 28 wherein the sending component functions in response to a click of a mouse button.

30. A system according to Claim 28 wherein the sending component functions in response to a voice command.

31. The client system of Claim 28 wherein said system is further configured to be protected from access by unauthorized individuals.

32. A system according to Claim 27 wherein said server system is further configured with:

a collection component for collecting the information from users into the centralized database; a tracking component for tracking the information on an on-going basis;

a displaying component for displaying the information;

a receiving component for receiving an inquiry from the client system regarding at least one of a Case Name, a specific selection regarding the user's current situation, an effective date, a total discounted cash flow value by Reserve Class and Location, an Annual summary cash flow by Reserve Class, Expense-related information, an Average Production Tax Rate, estimated average price differentials including all adjustments, number of wells in the first full year of production, a daily rate in barrels or annual volumes in thousand barrels per year, an economic year of property, and an Expense Escalation Rate; and

an accessing component for accessing the centralized database and causing the retrieved information to be displayed on the client system.

33. A system according to Claim 32 wherein said server system further configured with a receiving component for receiving an inquiry to provide information from one of a plurality of users.

34. A system according to Claim 32 wherein said server system further configured with a processing component for searching and processing received inquiries against the data storage device containing a variety of information collected by the collection component.

35. A system according to Claim 32 wherein said server system further configured with a retrieving component to retrieve the deal information from the data storage device.

36. A system according to Claim 32 wherein said server system further configured with an information fulfillment component that downloads the requested information after retrieving from the data storage device to the plurality of users in the order in which the requests were received by the receiving component.

37. A system according to Claim 27 wherein said server system is further configured to receive at lease one of a Case Name, a specific selection regarding the user's current situation, an effective date, a total discounted cash flow value by Reserve Class and Location, an Annual summary cash flow by Reserve Class, Expense-related information, an Average Production Tax Rate, estimated average price differentials including all adjustments, number of wells in the first full year of production, a daily rate in barrels or annual volumes in thousand barrels per year, an economic year of property, and an Expense Escalation Rate.

38. A system according to Claim 37 wherein said server system is further configured to receive information on-line directly through the client system.

39. A system according to Claim 37 wherein said server system is further configured to receive information in a pre-determined format established for inputting information for the deal.

40. A system according to Claim 37 wherein said server system is further configured to submit information through a pull down menu.

41. A system according to Claim 37 wherein said server system is further configured to submit information by selecting at least one option out of a plurality of fields.

42. A system according to Claim 27 wherein said server system is further configured to organize information into different sections of the database for easy retrieval of the information.

43. A system according to Claim 27 wherein said server system is further configured to store information against unique identifiers.

44. A system according to Claim 27 wherein said server system is further configured to store at lease one of a Case Name, a specific selection regarding the user's current situation, an effective date, a total discounted cash flow value by Reserve Class and Location, an Annual summary cash flow by Reserve Class, Expense-related information, an Average Production Tax Rate, estimated average price differentials including all adjustments, number of wells in the first full year of production, a daily rate in barrels or annual volumes in thousand barrels per year, an economic year of property, and an Expense Escalation Rate.

45. A system according to Claim 27 wherein said server system is further configured to store information in a pre-determined format.

46. A system according to Claim 27 wherein said server system is further configured to store information into various pre-defined sections for easy retrieval.

47. A system according to Claim 27 wherein said server system further configured to:

track information on a real time basis; and

update stored information by adding the new information to the centralized database on a real time basis to provide up-to-date information instantaneously to the user upon a request.

48. A system according to Claim 47 wherein said server system further configured to:

add and delete the information; and

edit the information.

49. A system according to Claim 47 wherein said server system further configured to enter information on-line.

50. A system according to Claim 49 wherein said server system further configured to enter information at least through one of a voice activation command and a device connected to the client system.

51. A system according to Claim 27 wherein said server system further configured to:

analyze the information received from the client system;

compute a valuation range based on a set of criteria established by a business entity; and

identify an attractiveness index between zero to ten, ten being the most attractive property for possible acquisition by the business entity based on the set of criteria.

52. A system according to Claim 27 wherein said server system further configured to:

download a valuation range based on a set of criteria established by a business entity from a server system;

download an attractiveness index between zero to ten; and

display the valuation range and the attractiveness index.

53. A system according to Claim 27 wherein said server system further configured to print requested information in a pre-determined format.

54. A system according to Claim 27 wherein said server system further configured to accept an inquiry from a user.

55. A system according to Claim 27 wherein said server system is further configured to accept an inquiry from a user.

56. A system according to Claim 27 wherein said server system is further configured to:

display information on the client system identifying a variety of options; and receive an inquiry from the client system regarding at least one of an option out of all the displayed options.

57. A system according to Claim 54 wherein said server system further configured to submit a request through pull down menus.

58. A system according to Claim 54 wherein said server system further configured to display an HTML document downloaded by the server system.

59. A system according to Claim 54 wherein said server system further configured to display at least one alternative from various alternatives available to the user.

60. A system according to Claim 51 wherein said server system is further configured to:

access the centralized database;

search the database regarding the specific inquiry;

retrieve information from the database; and

transmit the retrieved information to the client system for display by the client system.

61. A system according to Claim 27 wherein said client system and said server system are connected via a network and wherein the network is one of a wide area network, a local area network, an intranet and the Internet.