"The interface between PowerTools and IHS data provides such an efficient way to evaluate oil and gas properties, that for me, it's the most cost effective way. Then I can pass those cost savings on to clients."

— Allan Heinle, PE, President

Heinle & Associates prepares reserve and economic appraisals of properties to assist banks and other financial institutions in determining the amount of capital that can be collateralized by oil and gas assets. Industry clients turn to the firm during acquisitions and divestitures to provide third-party objective assessments of fair market value, reserves, future net income and risk associated with oil and gas properties. Or, they request that Heinle prepare annual reserve reports to meet SEC guidelines for public companies or to support annual bank loan reporting requirements.

Three Methods of Evaluation Enhance Results
Using PowerTools in combination with IHS well and production data, Heinle & Associates can determine a wide range of factors critical to client evaluations, including offset well performance, undeveloped reserve potential, well interference, type curve analysis, reserve distribution analysis, and reserve determination based on multiple methodologies. The ability to perform material balance, decline curve and volumetric analysis in PowerTools enhances the accuracy, thoroughness and confidence in Heinle's evaluations, particularly when historical production data does not define a predictable decline history.

"Combining volumetric, material balance and decline curve analysis, and comparing them with offset wells, is really easy to do in PowerTools," explained Allan Heinle. "This increases the accuracy and reliability of the reserves estimates and the associated value, which is ultimately what my clients want."
Because many of Heinle's clients also use PowerTools, the firm can provide databases and reports it creates to clients. Then, clients can update those files and track actual production versus projections throughout the year. When it comes time for Heinle to prepare another report, clients can simply provide their updated files for Heinle to upload, saving both sides time.

Once Heinle completes evaluations, the firm creates presentations for users in PowerTools, taking advantage of the ability to make maps, spreadsheets and other charts to visually display findings, and communicate evaluations and recommendations. They can also smoothly export results into Access and Excel.

Seamless Interface Saves Time
Yet, Allan Heinle points out that the seamless interface between PowerTools and IHS well and production data contributes most to his efficiency in performing evaluations. Because he doesn't have to waste time downloading data from state sites or creating databases, he can focus his efforts on the evaluations themselves.

Once Heinle has created a database, if he wants to evaluate a well or group of wells that he looked at six months ago, it's simply a matter of clicking on the property and the decline curve is automatically updated with the production history. This integration allows him to update wells and build databases very quickly, which again cuts costs.

"The interface between PowerTools and IHS data provides such an efficient way to evaluate oil and gas properties, that for me, it's the most cost effective way," he said. "Then I can pass those cost savings on to clients."