Magnum Forge’s client is a privately held company focused on the acquisition of onshore oil and gas assets in the United States and Canada, and it targets assets where opportunities exist to add value through low risk development, operational enhancements, and the application of proprietary technical knowhow. The client installed Enertia software to handle its ERP needs but was unable to fully utilize the software subsequent to the closing of two recent acquisitions. Financial data associated with the acquisitions needed to be cleansed and assimilated before it could be integrated into the client’s accounting and financial reporting system. This was a labor-intensive and formidable task for a staff lacking the training and expertise specific to the Enertia software platform. To make matters worse, management did not have confidence that the software provider had the capability to integrate the newly acquired production data in a timely manner to produce the needed regulatory reports, and the client’s production group was understaffed, so it was critical for them to find a team that understood production accounting within the oil industry, had deep functional expertise within their software, and required very little to no oversight to complete the project.
With more than 25 years of combined experience on integration projects involving Enertia, Magnum Forge was hired to bring a series of asset purchases online that involved a large number of wells that would require considerable assistance from Enertia. Our integration team worked with the client to secure delivery system schematics from each of the previous owners. These schematics needed to be analyzed and converted into Enertia within eight weeks of the project start date. Magnum Forge worked with existing production team members as well as newly acquired production resources from the new assets to review the setup of the new delivery systems as well as the allocated results. With little input from the client, Magnum Forge manually built out all master data and delivery systems, and the data was validated against records from the state regulatory website. Within 60 days of the start of the project, the client was able to produce state regulatory reports using Enertia. With the help of Magnum Forge, our client was able to better utilize the Enertia software as well as to take advantage of additional functionality that was not previously utilized.
Magnum Forge understands that integrating acquired properties requires speed and the unique knowledge of a client’s systems and the properties themselves. By establishing a plan to review gathering systems with key resources from the seller’s organization, then load and test the systems in the client’s ERP solution, Magnum Forge was able to get the client up and running to meet organizational deadlines for allocating volumes to drive revenue distribution and filing state regulatory reports. This quick action helped the client avoid the time-consuming effort of running initial allocations and revenue manually and allowed the client Aethon to make the most of its existing ERP solution. Along the way, Magnum Forge also provided critical training to the client’s resources to be better-positioned to handle their next acquisition without assistance.