Gulfport Unloosen Energy Together With Wexford Majuscule Business Office Vii: The Independence Of Reserve Assessment
Having got into a spat alongside everyone in addition to their domestic dog (including to a greater extent than than 1 client) nearly the ethics in addition to conflicts of involvement inwards investment banking I idea I would larn dorsum to only old-fashioned hot-chair-job-swapping conflicts.
And my old open fire - Gulfport Energy in addition to the many conflict-ridden relationships they accept entered.
This is a conflict every bit old every bit industry: who produce you lot larn to assess your reserves in addition to are they genuinely independent?
Oil in addition to gas companies are meant to accept independent in addition to competent parties assess their reserves. This is critical because what you lot every bit a shareholder are buying is future production in addition to reserves are the ground for hereafter production.
In this lite I desire to explore who is involved inwards assessing the reserves of Gulfport Energy.
To quote the 10K:
I accept highlighted the critical bit. The reserves alongside abide by to the Permian Basin are assessed past times Pinnacle Energy Services LLC. This has been the instance for many years - dating dorsum at to the lowest degree to the 2008 annual report. Specifically the reserves were concluding assessed inwards 2010 in addition to were assessed inwards 2009.
These reserves are over one-half the stated reserves of Gulfport inwards the concluding 10K.
In the rootage ship I quoted the Gulfport's proxy stating that Windsor Energy (which is controlled past times Wexford) is the operator all Gulfport's assets inwards the Permian basin.
Who are Windsor Energy?
Well apart from beingness controlled past times Wexford nosotros know rattling footling nearly them. They accept a website - but it is dead. More just the site is "under construction". Corporation Wiki gives a list of officers. But our best clue comes from archive.org - in addition to the "way-back machine". On archive.org nosotros tin detect how the WindsorEnergy.com website looked a few years ago. The site isn't "under construction" every bit described - it has been removed in addition to replaced alongside an "under construction" page.
Anyway the old site contains to a greater extent than or less CVs in addition to I accept pulled 1 which you lot tin detect here (click the globe "impatient" at the bottom right manus corner of the linked page).
And that is notable. According to the inwards a higher house CV, Lance Gavin, the quondam Chief Operating Officer in addition to VP of Windsor Energy used to piece of work every bit a "consulting engineer" for Pinnacle Energy Services LLC forthwith prior to working Windsor Energy.
When accountants produce that - going from audit theater to their clients - it raises eyebrows because it raises issues of independence. But it is non illegal. Its the kind of soft-conflict you lot larn used to on Wall Street - surprising, but non rattling surprising.
I was withal rattling surprised when I googled Mr Galvin's name. You run into the rootage hitting was his CV at Pinnacle Energy Services. I banknote that Lance Galvin is the minute most senior listed employee at Pinnacle. The next was downloaded inwards May 2012 in addition to is soundless on the spider web at the fourth dimension of posting.
But over again I suspect the CV is temporarily incorrect. I rang Pinnacle in addition to despite the electrical flow spider web page stating that Lance is a total fourth dimension employee his advert does non appear inwards the Pinnacle telephone directory. It is too possible to detect other entities which Lance has been an employee of during this fourth dimension - in addition to thence the page stating he is a total fourth dimension employee of Pinnacle may last old or non updated.
Still Gulfport Energy is laced alongside conflicts of interest: conflicts accept been the betoken of this series. And conflicts of involvement are non oftentimes illegal but the constabulary by in addition to large requires disclosure. Moreover every bit my Facebook serial shows reasonable people oftentimes scrap nearly the ethics of conflicts.
Moreover, the disclosure at Gulfport is by in addition to large pretty adept - but I had to piece of work a footling harder to detect this conflict.
And I idea the procedure amusing.
John
And my old open fire - Gulfport Energy in addition to the many conflict-ridden relationships they accept entered.
This is a conflict every bit old every bit industry: who produce you lot larn to assess your reserves in addition to are they genuinely independent?
Oil in addition to gas companies are meant to accept independent in addition to competent parties assess their reserves. This is critical because what you lot every bit a shareholder are buying is future production in addition to reserves are the ground for hereafter production.
In this lite I desire to explore who is involved inwards assessing the reserves of Gulfport Energy.
To quote the 10K:
There are numerous uncertainties associated alongside estimating quantities of proved reserves in addition to inwards projecting hereafter rates of production in addition to timing of expenditures. The reserve data herein represents estimates prepared past times Netherland, Sewell & Associates, Inc., or NSAI, alongside abide by to our WCBB, Hackberry in addition to Niobrara fields at Dec 31, 2011, alongside abide by to our WCBB in addition to Niobrara fields at Dec 31, 2010, in addition to alongside abide by to our WCBB plain at Dec 31, 2009; past times Ryder Scott Company L.P., or Ryder Scott, at Dec 31, 2011, in addition to by Pinnacle Energy Services, LLC, or Pinnacle, at Dec 31, 2010 in addition to 2009, alongside abide by to our assets inwards the Permian Basin inwards West Texas; in addition to past times our personnel alongside abide by to our overriding royalty in addition to non-operated interests at Dec 31, 2011 in addition to alongside abide by to our Hackberry fields, overriding royalty in addition to non-operated interests at Dec 31, 2010 in addition to 2009.
I accept highlighted the critical bit. The reserves alongside abide by to the Permian Basin are assessed past times Pinnacle Energy Services LLC. This has been the instance for many years - dating dorsum at to the lowest degree to the 2008 annual report. Specifically the reserves were concluding assessed inwards 2010 in addition to were assessed inwards 2009.
These reserves are over one-half the stated reserves of Gulfport inwards the concluding 10K.
In the rootage ship I quoted the Gulfport's proxy stating that Windsor Energy (which is controlled past times Wexford) is the operator all Gulfport's assets inwards the Permian basin.
Who are Windsor Energy?
Well apart from beingness controlled past times Wexford nosotros know rattling footling nearly them. They accept a website - but it is dead. More just the site is "under construction". Corporation Wiki gives a list of officers. But our best clue comes from archive.org - in addition to the "way-back machine". On archive.org nosotros tin detect how the WindsorEnergy.com website looked a few years ago. The site isn't "under construction" every bit described - it has been removed in addition to replaced alongside an "under construction" page.
Anyway the old site contains to a greater extent than or less CVs in addition to I accept pulled 1 which you lot tin detect here (click the globe "impatient" at the bottom right manus corner of the linked page).
Lance Galvin
Vice President in addition to Chief Operating Officer
Mr. Galvin was appointed Chief Operating Officer inwards July 2008. Prior to this appointment he served every bit Vice President, Operations in addition to Engineering for Windsor Energy since Feb 2008. Mr. Galvin worked every bit a consulting fossil oil engineer for Pinnacle Energy Services, LLC from 2003 to 2008. Mr. Galvin started his career inwards the oil in addition to gas manufacture inwards 1980 alongside Marathon Oil Company serving inwards diverse locations in addition to capacities. He served every bit Engineering Manager for Marathon Oil Company’s Oklahoma City concern unit of measurement from 1996 to 2001. Prior to this 1996, Mr. Galvin served inwards diverse engineering in addition to operations roles for Marathon inwards Houston, Wyoming in addition to Alaska. Mr. Galvin graduated from Colorado School of Mines inwards 1980 alongside a bachelor's score inwards Petroleum Engineering in addition to is a Professional Engineer inwards the Blue Planet of Oklahoma.This CV was valid inwards 2009. I produce non recollect the CV is currently valid because Lance Galvin no longer appears on their dial-by-name telephone directory of Windsor. Thus I presume he no longer plant there. He did piece of work at that spot during the menses that Pinnacle assessed Windsor's reserves. Remember Windsor's reserves were assessed past times Pinnacle inwards 2009.
And that is notable. According to the inwards a higher house CV, Lance Gavin, the quondam Chief Operating Officer in addition to VP of Windsor Energy used to piece of work every bit a "consulting engineer" for Pinnacle Energy Services LLC forthwith prior to working Windsor Energy.
When accountants produce that - going from audit theater to their clients - it raises eyebrows because it raises issues of independence. But it is non illegal. Its the kind of soft-conflict you lot larn used to on Wall Street - surprising, but non rattling surprising.
I was withal rattling surprised when I googled Mr Galvin's name. You run into the rootage hitting was his CV at Pinnacle Energy Services. I banknote that Lance Galvin is the minute most senior listed employee at Pinnacle. The next was downloaded inwards May 2012 in addition to is soundless on the spider web at the fourth dimension of posting.
Lance J. Galvin began working part-time for Pinnacle Energy Services, LLC every bit a consulting fossil oil engineer inwards 2003 in addition to joined the society full-time inwards 2005.
In 2001 Lance purchased a modest manufacturing concern inwards Oklahoma City in addition to continues to last involved inwards that business.
From 1996 to 2001, Lance was Engineering Manager for Marathon Oil Company’s Oklahoma City concern unit. His duties included managing a multi-disciplined Business Development Team responsible for identifying, evaluating in addition to completing acquisitions in addition to divestitures, managing several multi-disciplined Asset Teams responsible for evolution in addition to exploitation of the concern unit’s reserve base. These responsibilities included properties located inwards Michigan, Wyoming, in addition to Oklahoma. Lance was too responsible for engineering personnel development, reserve reporting in addition to budget compilation.
From 1992 to 1996, Lance held the seat of Operations Engineering Manager reporting to the Vice President of onshore operations for Marathon Oil Company inwards Houston, Texas. He was responsible for overseeing all engineering functions inwards concern units located inwards Midland, Texas; Oklahoma City, Oklahoma in addition to Cody, Wyoming. Lance managed evolution of property optimization strategies, implementing corporate alter agendas, engineering personnel development, SEC reserve reporting, in addition to corporate fiscal planning.
From 1990 to 1992, Lance was Operations Manager for Marathon Oil International’s Damascus, Syrian Arab Republic operation. His responsibilities included evaluating good performance, developing economics, preparing a Plan of Development, managing drilling in addition to completion operations, authorities negotiations in addition to facility pattern oversight.
From 1988 to 1990, Lance held the seat of Reservoir Engineering Supervisor for Marathon Oil International inwards Houston, Texas. He was responsible for managing all reservoir engineering activities for properties inwards Ireland, Norway, The Netherlands, Tunisia, Egypt, Indonesia, in addition to Australia. These duties included detailed technical good analysis, reservoir simulation, preparing drilling proposals, economical evaluations, preparing Development Plans, interfacing alongside authorities officials in addition to reserve reporting.
From 1980 to 1988, Lance held diverse production in addition to reservoir engineering assignments alongside Marathon Oil Company inwards Casper, Wyoming in addition to Anchorage, Alaska. His responsibilities included plain operations supervision, good completion in addition to facility pattern for oil in addition to gas fields inwards New Mexico, Utah, Colorado, in addition to Wyoming. He prepared economical evaluations, reservoir simulations, field-wide reservoir studies in addition to reserve reports for fields in addition to reservoirs inwards Utah, Colorado, New Mexico, Nebraska, Wyoming in addition to the Cook Inlet.
Lance graduated from Colorado School of Mines inwards 1980 alongside a bachelor's score inwards Petroleum Engineering.There are several issues alongside this CV vis the CV on Windsor Energy's site. For a start Lance is described every bit a total fourth dimension employee of Pinnacle since 2005 - somewhat to a greater extent than involvement than a "consulting engineer". The CV's don't match.
But over again I suspect the CV is temporarily incorrect. I rang Pinnacle in addition to despite the electrical flow spider web page stating that Lance is a total fourth dimension employee his advert does non appear inwards the Pinnacle telephone directory. It is too possible to detect other entities which Lance has been an employee of during this fourth dimension - in addition to thence the page stating he is a total fourth dimension employee of Pinnacle may last old or non updated.
Still Gulfport Energy is laced alongside conflicts of interest: conflicts accept been the betoken of this series. And conflicts of involvement are non oftentimes illegal but the constabulary by in addition to large requires disclosure. Moreover every bit my Facebook serial shows reasonable people oftentimes scrap nearly the ethics of conflicts.
Moreover, the disclosure at Gulfport is by in addition to large pretty adept - but I had to piece of work a footling harder to detect this conflict.
And I idea the procedure amusing.
John
No comments