Market Analysis

Is Benchmarking good business practice?

When making the decision to farm in or farm out many companies approach the issue with less professionalism than the technical work and assessment that has gone into the prospect generation and evaluation. Companies have been known to require their commercial group to perform the task (farming in or out) with unreasonable expectations and out of date opinions. JSI maintains a database of most of the publicly available farm outs as they come onto the market and also records all the announced deals, who has farmed in, under what terms & costs, and when wells are drilled how successful the farm in may have been. 

The benchmarking tools supplied by JSI help to ensure that deal making is carried out with realistic expectations.

Can you answer these questions?

  1. Do you know the right price to pay for a farm in or the right price to ask for a farm out?
  2. Do you know how the market is changing?
  3. What happened when the oil industry cycle was in a similar state to today last time round? 
  4. Can you be sure you have done all that is possible for success? 

JSI's Benchmarking Reports allow you to:-

  1. Compare the level of promote in a region against world averages or against another region
  2. Compare the price paid in a region against world averages or against another region 
  3. Look at farm out turn over in terms of volume & time taken 
  4. Look at how terms have changed in the past in a region 
  5. Check farm in drilling success rates and finding costs by region

Reports are available region by region so that companies can select just those areas that are of key interest. They are prepared at the beginning of each year with a mid year update included in the price. Alternatively a summary, comparing all the regions, can be supplied bi-annually.

More information is available if you email