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Success Story - Solving E&P Accounting Issues

Consulting on accounting and finance issues

Superior consulting services delivering successful accounting and finance solutions

When a publicly traded exploration and production company found itself facing a variety of complex accounting issues and new financial reporting requirements, including IFRS reporting, Aventine Hill Partners was prepared to meet the challenge though with accounting and finance consulting. 

Our Solution

The first issue we approached was the improper allocation of overhead. Our consultant reviewed the accounting processes and methodology the company was using and streamlined the allocations resulting in a more accurate and useful view of costs all the legal entities.

Next, the company found they were having difficulty forecasting revenue and depletion. After reviewing the existing process, our consultant identified where inaccuracies were being generated and implemented improvements that solved the problems.

Intercompany accounting for this company was complicated due to the number of entities involved. The existing accounting processes were becoming cumbersome and leading to incorrect entries being made. Our consultant reviewed the intercompany accounting process and made revisions, which saved time and increased accuracy.

The company was also having challenges with its CAPEX accrual predictions. Using prior experience working with similar issues, our consultant implemented a new methodology tailored to this company that improved the process and results.

When the company was required to provide financial reports based on IFRS accounting standards, our consultant led the conversion from Full Cost Accounting to Successful Efforts Accounting to make IFRS reporting possible.

Results

With the improvements implemented by Aventine Hill Partners, this exploration & production company could more efficiently and confidently account for its growing, complex business structure as well as prepare for future challenges. Learn more about our Accounting and Finance capabilities.

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