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Market Research Report
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1005579

State of Exploration Farm-Outs Report

Published: | Douglas-Westwood | Delivery time: 1-2 business days

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State of Exploration Farm-Outs Report
Published: April 22, 2021
Douglas-Westwood
Delivery time: 1-2 business days
  • Description
  • Table of Contents

The 2020 oil price crash and Covid-19 pandemic were the catalysts for a 60% decrease in farm-out activity (outside of N.America) in comparison to 2019. Deal terms remain flat with 50% of deals on ground floor terms. The two highest value deals were both in emerging plays and were completed by NOC's farming out to Supermajors. Despite the lower activity levels, exploration performance from farm-out wells is at a five-year high, with a 38% commercial success rate driven by improved performance in maturing/mature play wells across NW Europe.

FIGURE 1: EXPLORATION FARM-OUT DEALS SINCE 2010
WITH AVERAGE BRENT SPOT PRICE

                  SOURCE: WESTWOOD WILDCAT AND EIA

The report covers:

  • Exploration Farm-Outs in 2020
  • Deal-making by Company
  • Deal Terms
  • Exploration Performance from Farm-Out Drilling

Table of Contents

Summary

Introduction

  • Definitions

Exploration Farm-outs in 2020

  • Overall activity levels
  • Farm-outs by region
  • Deals by water depth
  • Deal type by play maturity
  • Equity traded

Deal-making by Company

  • Farm-outs by peer group in 2020
  • Most active farm-in companies
  • Most active farm-out companies
  • Net farm-in/out deal value by company
  • Net changes in equity

Deal terms

  • Exploration deal value
  • Promote levels
  • Licence value
  • Time from deal announcement to deal completion
  • Time from deal completion to well completion

Exploration performance from farm-out drilling

  • 2020 exploration performance
  • Farm-out discoveries of 2020

Discussion

Conclusions