Due Diligence and Pre-Investment Services

 Challenge:

Group of International Oil Prospectors seeking Investors in the development of a Block in Ghana.

Solution Approach:

• Detailed Review of the various geological and depositional model concepts presented by the Prospectors
• Three days of detailed due diligence covering technical, economic, commercial and political landscape
• Followed by 5 hours of face to face meeting with International Prospectors

Results:

• Incoherent Geological concepts and inconsistencies in the depositional model theories (Prospectors acknowledged that IFDC Team was the most Technically competent team they ever worked with)
• Lack of data to support detailed modeling process
• Significant commercial and political/environmental risks
• Outcome was a significant investment risk

Lessons Learned:

Need for an effective due diligence necessary – saved the group over $20 million potential phase one investment.