Christmas update from EDR
I thought we’d write to give you an update on what we’ve achieved over the last 4 months and inform you about the plans we’ve already made for 2019.
As you might expect, it’s been an extremely busy time as we went to the market with our new proposition in late Summer. I’ve personally been on a plane almost every 3 days since September and the reaction has been overwhelmingly positive. Some of the highlights have been:
A hugely encouraging reaction from the consultants on our transparent approach. With EDR only taking a fixed margin on the consultant day rate, we’re ensuring people are better incentivised and remunerated. We are also some 10-15% less expensive on our top line, which means operators are making direct savings.
We’ve attracted several very high-profile people, some of whom I’d never have thought we’d get working with us. Having a core team of outstanding individuals will ensure we win bids with our unique proposition.
I though the Majors would have pushed back more than they have… Typically, C&P have been the stumbling block/barrier, but to some extent the tough last few years has helped in that we’re genuinely trying to save them money.
We have now re-established contracts with 7 IOCs and 5 Independents. That’s not a bad achievement in 4 months and there is more good news to follow in Q1 2019.
I have surrounded the business with a team of core partners and of particular note is SG Kleinwort Hambros Bank, Guernsey. KH is Société Générale’s private banking arm and they will support the business internationally. That being said, we are fully capitalised, have no debt and have sufficient working capital to grow.
Deon and Claire, who both supported me at EPI (for 9 and 7 years respectively) add a solid internal capability, which combined with the additional external accounting resources mean we can handle a good number of projects. From January, Deon will look after the consultant network and support with field operations.
Under our EP&D Insource® model, we have put together our first E&P team compromising of geophysicist, reservoir engineer, petroleum economist and development geologist which we should be deploying under an O&G company in early 2019.
We have now formed 8 partnerships of complementary businesses. In particular a few highlights:
Monarch Geophysical gives us access to 8 full time geophysicists and all the associated software (OMNI, MESA, Kingdom, Dug Insight etc.)
We have teamed up with ION to look at how to make 3D marine operations slicker, adding some serious technology to our QC toolbox.
We are working very closely with an environmental mitigation and environmental field consultant consultancy to add some world-class resources to the QC team. This is really exciting; particularly given their strong track record in East & West Africa and the number of joint opportunities we’re working on as ‘partners’.
Gneiss Energy are heavy hitters in the corporate M&A advisory market and act for a large number of AIM listed and Independent O&G operators. We’re working together on several high-profile projects and a press release will be out in the market shortly.
We continue to work with SMC and are collectively helping one another broaden the geographic spread.
So, whilst it’s still early days, we have had a great start and there is no reason for this not to continue next year.
Clearly, this could not be achieved without your help and support. Sam and I are personally very grateful for the trust which people have once again put in us.
It only remains for us to wish you all a very Merry Christmas and a happy and prosperous New Year.