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JVViews: January 2016 Issue

President's Message
Editor's Note
January Luncheon
Automated Submission Of Exhibit “A” To The Unit Agreement
Early Morning Discussion
JV Administration Corner
Pub Night
Mini Information Session
Upcoming Events
Social Media
Member Benefits

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President's Message

Happy New Year to all of our membership. Like most people in this industry I am glad to see 2015 behind us. Unfortunately, by most of the forecasts I read 2016 is going to be another year to forget.

Enough doom and gloom. 2016 is going to be an interesting year for us in the PJVA. We will be working to get ready to move our certificate program to SAIT from MRU. This will signal a return to classroom based courses, from our exclusively on-line courses. I know there will be two camps on this, but we felt that moving the courses to SAIT was a positive one and in discussions with the SAIT people they feel that it is a better experience and leads to better learning for the students. For those of you who prefer on-line, we will still have our E-Studies course available.

Back in September at our PJVA Board strategy session I was tasked with drafting a 5 year vision. We had decided to put this together to provide continuity between past and future boards of directors. With our long term projects, such as our on-going educational offerings and the fact that we are a volunteer based association, we have to be careful not to sacrifice quality for quantity. With our 5 year vision supported by an action plan we will be able to move forward those actions which we think are important for our association and industry.

I want to thank every one of you for your support of the association over the years. And if you have made your wish to volunteer known but have not yet been contacted, please be patient. Scott Wolfson (our membership director) is working with the other directors to find meaningful opportunities for you.

Stay safe.

Marcel

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Editor's Note

To all PJVA members, a belated welcome back from what was hopefully an enjoyable break over Christmas and New Year’s. So far 2016 is shaping up to be another challenging and difficult year in the oil and gas industry. So to add a little bit of levity to the economic circumstances that we find ourselves in, I thought I would include some “Oil Industry Tidbits” in my Editor’s Notes each month; an assortment of interesting things that perhaps you didn’t know.

Oil Industry Tidbits

1778 -	Peter Pond recorded the occurrence of bituminous sands at confluence of the Athabasca and Clearwater Rivers.
1820 -	John Richardson made the first scientific examination of Athabasca’s “bituminous sands”.
1846 -	Dr. Abraham Gesner demonstrated the wonders of kerosene for illumination on Prince Edward Island. Dr. Gesner's process used coal or natural asphalt as a raw material rather than crude oil found in pits and seeps.
1857 -	Canada’s first oil production at Oil Springs, Ontario - from a shallow pit.
1858 -	Canada’s first oil well at Oil Springs, Ontario. Note: this well was probably “dug” not “drilled”.
1883 -	Gas was first found in Alberta, at Langevin, near Medicine Hat while drilling a water well for the CPR.
1897 -	A well drilled at Pelican Rapids, Manitoba struck gas and blew out for 21 years.

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January Luncheon

Date:	Thursday January 21, 2016
Time:	11:30 AM - 1:30 PM
Location:	The Petroleum Club 319 - 5 Avenue SW

Price:	PJVA Students:	$20.00 (+GST)
	Members:	$45.00 (+GST)
	Non-Members:	$55.00 (+GST)

Topic:	Insights to a Startup E&P Through Acquisition
	Simon will discuss his insights in starting Jupiter Resources. While many Joint Venture professionals are familiar with producing asset acquisition, this speech will highlight a founder's perspective in building company culture, finding and acquiring the right asset, and empowering the new team.
Speakers:	Simon Bregazzi, CEO Jupiter Resources
	Simon has over 20 years of experience in the petroleum industry in corporate finance and mergers & acquistions. From 2009 to 2014, Simon served as Chief Financial Officer of Canbriam Energy Inc., a Calgary-based private oil & gas company. Prior to Canbriam, Simon spent over 11 years in investment banking in both Calgary and New York, most recently as Managing Director and Head of Canadian Energy Investment Banking for Goldman, Sachs & Co. Simon holds a B.Sc. (Hons) in Actuarial Science from the University of Western Ontario.
Reserve:	Register online here by Wednesday, January 20, 2016. Or download a registration form here! See the event page here!

Cancellations made 72 hours prior to event will receive a refund (minus $10 transaction fee)

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Automated Submission Of Exhibit “A” To The Unit Agreement

Alberta Energy (AE) is developing an application to assist with the submission of Exhibit “A” revisions through our current secure web interface Electronic Transfer System (ETS) in partnership with our industry clients. Enabling unit operators with this functionality via ETS will provide many benefits to both industry and AE. The anticipated project timeframe is from now until the end of March 31, 2016 when the new process will be implemented.

Background

The Unit Agreement establishes the foundation of the Unit. It defines the relationship between the tracts of land, royalty owners, working interest owners, their working interest and tract participation for the allocation of production. Each Working Interest and Royalty Interest Owner, who becomes a party to the Unit Agreement, is noted on Exhibit “A”. In accordance with the Unit Agreement, each time there is a change to one of the components on Exhibit “A”, a revision is required and is distributed to Owners and to Alberta Energy. For example, if Company XYZ assigns their interest in the Unit Agreement to Company EFG, then the Unit Operator revises Exhibit “A” in accordance to the Unit Agreement and distributes accordingly.

Currently, AE receives hardcopy of Exhibit “A” revisions from Unit Operators. AE enters this information manually into our land system which holds approximately 11,000 revision records. A chronological sequence of revisions (per unit agreement) is maintained in our records for timely and accurate assessment and calculation of royalty.

What will be automated?

The automated submission of Exhibit “A” revisions will enable the Unit Operator to:

Update Unit Operator
View all Exhibit “A” revisions recorded with AE within the open years
Create a new Exhibit “A” revision
Create a new Correction to an Exhibit “A” revision, within the open years

Data elements available for on-line update in Exhibit “A” revisions are:

Royalty Owner
Overriding Royalty Owner
Working Interest Owner
Share of working interest %
Share of tract participation %

Benefits from this initiative:

Direct on-line access to the Exhibit “A” information
Improved turnaround time and communication between the Unit Operator and AE
Data integrity based on applied business rules at time of submission
Reduced resubmissions, errors and potential backlogs
Reports available to Unit Operator (Exhibit “A” – Part I and Part II) in Excel or PDF format
Controlled security for viewing and submitting Exhibit “A” revision requests

Out of scope at this time:

On-line submission of Exhibit “A” for NEW Unit Agreements which will still follow AE’s current manual business process.
On-line submission of Exhibit “A” revisions due to an enlargement, reduction or amendment to the Unit Agreement.
Retrieval of Exhibits “B” (unit area map), “C” (well log) and “E” (unit well list) documents

A working committee of AE staff and PJVA volunteer members has been collaborating on this initiative since November 2015. A presentation, demonstrating the new application and process, will be held on February 18, 2016 at ConocoPhillips Auditorium at 1:00 pm.

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Early Morning Session - Wednesday, January 27th 2016

Date:	Wednesday, January 27, 2016
Time:	8:00 AM - 9:30 AM Doors open at 7:30 AM
Location:	The Petroleum Club McMurray Room 319 - 5 Avenue SW

CO&O Task Force Update

Members of the CO&O Task Force will provide an overview of some of the proposed revisions to the model CO&O. The focus of this session will be on the financial matters contained in the CO&O Agreement. This session will consist of an overview of proposed changes to the CO&O Agreement and will provide an opportunity for feedback and discussion on the topic.

Click Here to RSVP

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JV Administration Corner

We would like to introduce you to the new Administration Corner of the JV Views…

The Administration Corner will showcase and share industry information at an administration level, answer questions or concerns, get a second opinion on an issue, create and promote best practices and consistency and the raise the general understanding of the Administration Role and Administration Procedures across diverse company structures.

Here’s what the ADMINISTRATION PORTFOLIO GROUP is up to:

The Administration Portfolio group was formed to help create a forum where Administrators can go for consistent, accurate and concise information. Since it is an Administrator’s role to deliver superior, customized and timely Joint Venture service and support to meet the needs of their stakeholders, the Administration Portfolio group is working toward standardizing cover letters and best practices to create a PJVA standard for Administration.

The current members of the JV Administration Portfolio are:

Lorie Caron – Chair
Lindsay Barbaro
Monica Betancourt
Angela Carneiro
Linda Egilsson
Carolina Hodgson
Linda Leong

Maureen McCall
Maria Murray
Farida Noormohamed
Brenda Penny
Trudi Thomas

Past members of the JV Administration Portfolio who we would also like to recognize for their contributions are:

During the review of the Administration processes, it has become quite apparent that Contract Administration is a crucial component to ensuring paperwork is completed in accordance with the agreements and is concluded in a timely and efficient manner. We tip our hats off to all JV Administrators for their diligence, expertise and flexibility to ensure the job is well done!

Look here next month to read interesting and thoughtful facts on our PJVA model agreements, general facts regarding industry processes and a fun little quiz here and there.

Signing off until next month…

Trudi Thomas, Brenda Penny and Lorie Caron

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Pub Night - January 20, 2016

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Mini Information Session - February 10, 2016

Date:	Wednesday February 10, 2016
Time:	Registration:	8:00 AM - 8:30 AM
	Session:	8:30 AM - 10:00 AM
Location:	ConcocoPhillips Auditorium 401 - 9 Avenue SW (+30 level on the west end of Gulf Canada Square)
Price:	PJVA Members:	$20.00 (+GST)
	Non-Members:	$25.00 (+GST)

(Coffee & muffins will be supplied)

Topic:	Working with Canada’s Natural Gas Midstream Industry
	The processing business is becoming more complex, thus it is vital for the PJVA to be current in both the midstream and downstream aspects of our business. This midstream seminar will provide a little bit of history on the evolution of the midstream sector, the three key areas in midstream commercial arrangements that you should concern yourself with, and other important considerations such as plant turnaround costs, plant product recovery efficiencies and plant on-line reliability.
Presenter:	Bart van Schaayk, Principal – GPMi
	Bart van Schaayk is a Professional Engineer with 30 years’ experience focused predominately on the infrastructure, commercial, economic and regulatory aspects of the natural gas industry in Canada.
Reserve:	Register online by clicking here! Or download a registration form here!

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Upcoming Events

January 20, 2016 - Pub Night Networking

January 21, 2016 - PJVA Luncheon

January 27, 2016 - Early Morning Discussion

February 10, 2016 - Mini Information Session

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Social Media

@PJVA

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Member Benefits

Don’t forget to check out the Resources link of the website for Member Benefits.

PJVA was incorporated in 1985 to represent individuals and organizations involved in petroleum joint ventures. JVViews is published to keep members informed about upcoming PJVA and industry events, courses and seminars offered and/or sponsored by PJVA and current projects being facilitated by the Association.