Due Diligence – Martindale Consultants, Inc.

Whether an operated or non-operated property, understanding the unique language or provisions in an operating agreement or accounting procedure is critical to being able to properly implement the agreements and understand what costs can and cannot be charged.

Also, companies need precise and clear language in their Purchase and Sale Agreements (PSA) detailing how certain types of costs should be handled:

How are outstanding audit claims to be resolved and which party receives credits?

Which party has joint interest billing and revenue audit rights for the pre-effective date period?

Is the PSA language clear enough as to the cut-off dates for costs and revenues?

Are vendors aware of company policies and procedures or are conflicts of interest present?.

Does the vendor carry insurance, per stipulations in the MSA?

There will likely be transitional accounting performed; is the PSA language clear enough as to the specific dates and time periods each party pays costs and is entitled to revenues?

Previous slide

Next slide

At Martindale, our services are designed to ensure accuracy and compliance. Trust us to handle these critical accounting functions, allowing you to focus on your core operations with confidence.

Primary Contact

Matt Pilkington