The New NormalModern Land Management

Modern Land ManagementThe Focus• State of the Industry

• Do More with Less

• Blaze a New Trail

• Define Work Differently• Elevate and Execute• Leverage Technology• Leverage Resources

State of the IndustryWE SURVIVED 2020…Historical Events of 2020 :

• Oil traded below zero in April 2020 on the WTI May Contract due to decrease in demand from the Pandemic

• Natural Gas traded for $800+/mcf in February 2021 in response to the ‘Arctic-a-pocalypse’ that covered Texas and Oklahoma with record breaking low temperatures

• Remote work became a necessity

• 46 E&P companies filed for bankruptcy in 2020

• 61 Oil-Field service companies filed for bankruptcy in 2020

Yet we still must quantify and manage leasehold ownership to ensure owners are billed and paid correctly.

Land ManagementDO MORE WITH LESS

Today (and Tomorrow’s) Marke t

The Challenges:

• G&A Budgets are shrinking

• Demand for Throughput is Increasing

• Information Silos and Role Separation becoming Extinct

Leverage Technology, Resources and Process Improvements

The Opportunities:• Well Rounded Career – Blended Roles increase

marketability and add value to your team

• Leverage technology to implement process improvements

• Ability to assess projects that are better suited for outsourcing

• All of the above help improve ROI for your team and company

Blaze a New Trail‘Don’t follow the path. Blaze the trail.’ - Jordan Belfort

Blended Roles

Division Order Analyst + Lease Records Analyst + Owner Relations Analyst + Landman =

Alleviate unnecessary duplicative work, better owner relations, data quality between Lease Records, Division Orders and Accounting Decks, centralized data organization and documentation for audit purposes. Increased Throughput, Well -Rounded career development and added value to the team

Bottom Line: Streamlined Processes and Data, Professional Development = Improved ROI

Define Work Differently‘Try new things.’

Throughput, throughput, throughput….What is KanBan?

Kanban is a workflow management method for defining, managing and improving services that deliver knowledge work. It aims to help you visualize your work, maximize efficiency, and improve continuously.

Why try it?The visualization of work that is pending and understanding WIP limits, planned and unplanned work help build a business case for staffing, help set reasonable deadlines, and improve collaboration.

Book Recommendation: The Goal

Start Simple‘Start where you are . Use what you have . Do what you can.’ -Arthur Ashe

Throughput, throughput, throughput….

Start Simple: Write down the WorkOrganize it into Categories:

BacklogWork In ProgressParking Lot or Road BlocksCompleted Work

Determine a weekly or bi -weekly meeting cadence,potentially a daily 10 minute stand -up Meaningful Work

Evaluate and Elevate‘If you define the problem correctly, you almost have the solution.’ –Steve Jobs

Scope the ProjectZoom Out

• Involve Stakeholders – Gain Perspective and Buy In, Thorough Problem Solving, Well Rounded Solutions

Define the Problem, Understand the Impact, Elevate Solutions• Understand and define the existing problem• Risk Assessment - Monetary, Safety, ROI• Propose and Elevate Solutions – Depending on size of the problem and impact to the business, break

solutions up into Phases, Define necessary resources and realistic timelines

Don’t be afraid to start… fail fast…. and adjust quickly

Leverage Technology‘Automation is a good thing, so long as you know exactly where to put the machine .’ –Eliyahu Goldratt

Identify Automation Opportunities and Elevate

• Define the man hours saved, impact to the business, and resources needed• Understand the Process• What do the Software Vendors offer? Open Source API? SQL? Uploaders?• Where is the source data? If multiple sources, work with team to determine a reconciliation and source of truth• What resources would it take to automate or leverage technology to streamline the process?

Leverage Software‘If the challenge exists so must the solution.’ –Rona Mlnarik

• Existing workflows• AFE process, Owner Relations platform, Accounting

Directives, Reporting Platforms, Land Payments, Open Invoice integration, Export process for EnergyLink JIB & REV statements

• Data Import and Export process• Open API? If yes, which applications?• Other methods of integration? FTP site scheduled

drop offs, etc?• Method to access data on the backend

• Development time• Customization turnaround time, Escalation service

request process

• Software Contract• Specify deliverables, details of what is included in

the initial implementation and ongoing services

• Dedicated Resources• Define expected time commitment and resources

from client• Define resources and time dedicated from

software provider• Understand and Define Software Updates

• How are software updates provided? The test environments supported, software company’s internal testing process before release of updates

• Servers• Define and understand how much horsepower it

will take to support your asset/company and what the cost will be incrementally as the company scales

Leverage Software‘If the challenge exists so must the solution.’ –Rona Mlnarik

• Important Questions:• What is the source of truth for N&A Owner information? Can Name and Address Data be imported? Does it

override the existing data? How can I capture and audit N&A change of address updates? How can we create a QC process that is automated to validate the process is running and is accurate?

• Does the software house a place for lease links? How can we further integrate and automate change of ownership processes between Land and ERP systems? How do we preserve original lease and ownership information for potential divestiture and exhibit purposes?

• Can this application or data behind the application be utilized for anything else? Marketing, gas balancing, etc.? • What is the average processing time for this size of asset? • Has anyone else integrated with this Land and Accounting ERP system selection? Can we leverage any of those

types of integrations?• What resources would be needed to integrate to other systems? Is that included in our software agreement?

Leverage Resources‘Greatness is not a function of circumstance . Greatness, it turns out, is large ly a matte r of conscious choice , and discipline .’ -James C. Collins

Identify Outside Resource Opportunities

• Define the man hours saved, impact to the business, and resources needed• Understand the Process and Project

• Is it a one-time project?• Is it ongoing, data entry heavy? • What is the opportunity cost of leveraging external or internal resources needed to complete the project?

Evaluation Effort Example‘If you define the problem correctly, you almost have the solution.’ –Steve Jobs

Problem Statement:Post Production Deductions continue to be a litigation risk. Currently, our Land and Accounting ERP systems do not have a un ique identifier, such as a lease number, that links the Land/Lease ownership to the Accounting/BA ownership, thus costing our current staff 30% of their time and effort month over m onth to research and handle multiple one -off litigation requests.

Risk Evaluation:Litigation, statutory royalty payment requirements, etc. pose a risk of royalty owners not being paid in accordance with leas e terms. The level of work our current staff is burdened with to link the Land and Accounting ownership with the correct Lease Numbers is extraordinary. The continuous loss of G&A dollar s devoted to unplanned litigation work is causing throughput shortage in all other day to day work.

Proposed Solutions:Leverage Technology to create a strategy and plan to execute the project as efficiently as possible. Include the following data points:

Current Rate of execution internally with 30% of staff time devoted to project: 3 yearsCurrent Rate of execution externally with 100% of contractor time devoted to project: 10 monthsIntangible Benefits: Land and Accounting ownership BA numbers are linked, thus ability to reconcile and automate Name and Ad dress master so that shut-in payments, etc. are paid to the correct address is resolved. Automation opportunities to reduce duplicative processes and work between ownership maintena nce in Land and Accounting ERP systems are possible. 30% of current staff time dedicated to unplanned litigation work to handle these types of projects are recovered.

THE ENERGYPOINT ADVANTAGESkilled Energy Professionals with industry experience in the following fie lds:

• Land E&P• Land Administration• AP,JIB,RevenueAccounting, Gas Balancing• Marketing• Asset Management• Revenue Recovery• Lease Linking

Extensive experience with major E&P ERP systems such as:

• Quorum, P2 Bolo, Landdox, W Energy,SAP

• ERP Implementations and Integrations for both Land and Accounting

• Data Management and Reporting (PowerBi)• Best practice solutions

• Flexibility and Industry experience enables best practice recommendations to best fit clients’ needs

Donna Kingdonnaking@energypointllc.com405 818 3033

Justin Zerklejustinze rkle@ene rgypointllc.com317 501 8068

Contact us

Energy Point Consulting LLC