An Exploration and Production company grew rapidly through a series of acquisitions, resulting in ownership and management of both developed and undeveloped properties in various states. The company quickly realized they had outgrown their business processes and systems. The revenue and production accounting systems handled a limited set of assets and much of the production and accounting tracking was done using spreadsheets. While the systems in place met the current demands, the company had plans to expand into other regions that would require integration of different assets into existing processes. The systems would need additional capabilities to support a more diverse portfolio as a result of the company’s expansion.
Trenegy was hired to evaluate the company’s production, AFE, reporting, procurement, and accounting processes and determine the best-fit ERP solution that would support the company’s business goals. An in-depth review of the company’s entire business practices and supporting applications was performed. The current environment required manual intervention and expansion of the business would require more manual effort and staff to operate the system. The land systems were not integrated with the revenue accounting system, causing discrepancies and excessive prior period adjustments. The production systems were not integrated with the accounting and AFE systems, causing reporting issues and manual efforts managing the well life cycle. Trenegy worked with the company to identify a future state vision and conduct a gap analysis to determine the best-fit solutions and roadmap for the company.
The comprehensive system assessment along with Trenegy’s experience with peer companies allowed the project team to select the right set of solutions with confidence. The solution was supplemented with best in breed solutions to manage the well life cycle, strategic sourcing, contract management and planning and forecasting. A detailed business case for the new systems was developed and presented to the board for approval. The board approved the solutions that would automate accounting, well life cycle, production, land, and reporting processes and accommodate a larger portfolio of assets.