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MASTERCLASS: ADVANCED & EXPERT STRATEGIES IN OIL & GAS FINANCE AND ACCOUNTING

05 - 09 MARCH 2012 HOTEL FUERTE MARBELLA SPAIN

FINANCE SERIES

Limited Seatsk Boo Available. Today! ats Your Se

WHY YOU CANNOT MISS THIS EVENT


Finance and accounting is one of the core management functions in all organizations. The maximisation of financial resources may be the key factor for success. However, in the challenging oil & gas industry, the rapid changes in geopolitical and economic climate has brought forth a growing need for change in regulatory framework regarding environmental, governance and reporting issues. It is crucial that leaders in the oil & gas industry be equipped with wide-ranging knowledge in finance & accounting to achieve strategic planning & decision-making. This will give them a boost in achieving long term success. There is a need for the demonstration of risk identification and financial management to be grounded in timely, accurate forecasts and performance data. These have caused the industry to be one of world most challenging and complex business environment.

YOUR INT YOUR INTERNATIONAL COURSE FACILITATOR


Betty J. Simkins, Ph.D. Professor of Finance Oklahoma State University
Betty J. Simkins, Ph.D., is the Professor of Finance in the Department of Finance at Oklahoma State Universitys Spears School of Business where she teaches, corporate finance, energy finance and risk management, advanced financial management, corporate valuation, and case studies in finance. She frequently presents her research at leading academic conferences around the world. Prior to entering academia, she worked in the energy industry for ConocoPhillips, Williams, Inc., and Williams Pipeline Company, among others. Dr. Simkins has also worked as a consultant or advisor for Wells Fargo, ConocoPhillips, Deloitte Touche, Morgan Stanley, Conference Board of Canada, the National Association of Security Dealers (NASD), Southwest Airlines Company, Williams, Inc, and EKF (Eksport Kredit Fonden, Denmark). She is frequently interviewed and quoted in the press regarding her research and expertise on energy finance, including such publications as the Wall Street Journal, the Chicago Tribune, and the Houston Chronicle. Her research was recently used in testimony to the U.S. Senate Banking Committee. She has over 50 publications in academic & practitioner journals and has won awards for her risk management research. She has a 2012 forthcoming book, Energy Finance and Economics: Analysis and Valuation, Risk Management, and the Future of Energy, which will be published by Wiley. Her 2010 book, Enterprise Risk Management: Todays Leading Research and Best Practices for Tomorrows Executives, is a Wiley top seller. Her publications rank her in the top 5 percent of finance researchers. In addition, Dr. Simkins has won a number of teaching awards including the highest at OSU, the Regents Distinguished Teaching Award. Her current research and consulting focuses on the oil and natural gas industries, energy finance, enterprise risk management, and energy risk management. She currently serves on the Board of Directors for the Financial Management Association, as co-editor of the Journal of Applied Finance, as Editor of FMA Online, as past president of the Eastern Finance Association, and on the editorial boards of several prestigious finance journals.

Excellent coverage of financial forecasting, risk analysis, and planning.


- ConocoPhillips
Key reasons why your organization would benefit from this course:
Establish crucial insights of the oil & gas industrys current and future prospect Improve key analytical skills and techniques in oil and gas capital budgeting and project evaluation including risk analysis for better decision-making and strategic planning Review the critical issues related to International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) and its application in oil & gas companies Understand the most important issues related to valuation of oil & gas prices & properties under current and proposed international accounting standards Manage and mitigate risks effectively Gain knowledge on derivatives and hedging due to the complexity of the industry

Great course that gives me the good ideas in financial accounting strategies which will help me in my work.
- Ministry of Oil & Gas Oman

Most teachers are passionate about what they teach: however, Dr. Simkins has raised the bar for her peers by bringing the real world into the classroom. - Ernst & Young, Inc.

360 BSI (M) Sdn Bhd (833835-X), Level 8 Pavilion KL, 168 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia.

COURSE CONTENT
ALL SESSIONS WILL BE THEORY AND PRACTICAL BASED
Participants should bring their calculators to all 5 days of the course. It is highly recommended that participants also bring laptops on Days 2, 3 and 4 for the practical exercises.

DAY1 BUDGETING AND FORECASTING STRATEGIES


IN THE OIL AND GAS INDUSTRY
Session One: Laying the foundation -- Global energy outlook, supply and demand balance brought about by a rapidly changing world Setting the stage for finance and accounting strategies for oil & gas companies Global energy outlook Energy supply and demand issues Current views on energy price projects Human capital shortages, unproven technology & unknown geology Future trends of oil and gas Session Two: How oil and gas companies differ from other industries and key issues in oil and gas accounting and finance To understand the financial prospects of an oil and gas company, one must understand how they differ from other industries and key issues related to reporting. Special accounting treatment for Oil and Gas companies Analyzing the different accounting methods and financial statements Determining the proper classification of oil and gas costs: capitalize, expense, exploration costs, development costs, production costs Revenue recognition: when is it revenue and when it is not? Fair value accounting issues Industry accounting issues Session Three: Observing the role of International Accounting Standards (IAS) and future issues as they apply to Oil and Gas companies Overview of critical issues related to international petroleum accounting Observing the role of International Accounting Standards (IAS) in the future of financial statements for oil and gas companies - Where they came from - What does it mean to companies now and in the future Value chain and significant IAS accounting issues Upstream Oil and Gas specific differences between IAS and U.S. GAAP Session Four: Analysis of international oil companies financial statements Part 1 This two-part session will continue with topics covered in the prior session on IAS by applying them to financial statement analysis. Delegates will learn 10 important factors in reading and analyzing the financial statements of international oil companies. The main focus will be on learning how to analyze the companys success in exploring and producing oil and gas reserves and understanding the concept of competitive benchmarking of the company against other energy companies. This session is helpful in gaining knowledge as a business professional working in the energy industry, a potential investor or lender in the oil and gas industry and an individual seeking employment in this industry. Delegates will analyze the financial statements of a leading international oil company.

DAY2
OPTIMIZING BUDGET MODELS AND CAPITAL INVESTMENT ANALYSIS
Session One: Analysis of international oil companies financial statements Part 2 Delegates will analyze the financial statements of leading international oil companies. - Case studies and Excel applications - Bloomberg applications Session Two: Competitive benchmarking This session will cover the critical topic of competitive benchmarking. What is this? Competitive benchmarking an understanding of how well a company is doing relative to other companies. These are performed to identify individual investment, institutional investment, employment, benchmarking, and Merger and Acquisition potential. When companies compare themselves to their peers, they usually have a number of significant advantages over outsiders. Session Three: Capital budgeting and risk analysis in the Oil and Gas industry Valuation of Oil and Gas assets is a critical and challenging process. The uncertainty of production, prices, capital costs and construction delays, among other factors, makes it difficult to value projects. In this session, leading analytical skills and techniques used in Excel will be discussed and illustrated using real case studies on financial forecasting and analysis. Recap of traditional capital budgeting methods - Net present value (NPV), internal rate of return (IRR), modified IRR, payback period and discounted payback period Advanced analytical skills, techniques, and challenges in oil and gas capital budgeting including: - Oil and gas production, oil and gas prices, cost of capital, construction costs, and startup delay Session Four: Case study applications and open discussion of crucial issues Participants will analyze case studies of actual international firms operating in the oil and gas industry to further explore issues covered in the sessions covered today. Attendees will also have the opportunity to discuss crucial issues facing them with delegates in attendance. Open discussion will follow with suggestions and recommendations. This is an excellent opportunity to interact in a stimulating group setting with other participants.

Topics covered include: Energy ratios specific to oil and gas companies Reading oil and gas reserve disclosures Analyzing production replacement and reserve replacement Analyzing finding costs and reserve replacement costs Reserve life index Key profitability indicators

Very beneficial course.


- PTT Exploration & Production, Bangkok, Thailand

COURSE CONTENT
ALL SESSIONS WILL BE THEORY AND PRACTICAL BASED

DAY3 ADVANCED CAPITAL BUDGETING AND RISK


ANALYSIS IN THE OIL & GAS INDUSTRY
Session One: Advanced capital budgeting and risk analysis in the Oil and Gas industry Would you like to master financial forecasting and analysis? If so, this session is a must in gaining the cutting-edge skills necessary for sophisticated financial analysis and modeling of oil and gas projects. In this session, Monte Carlo simulation will be used to model uncertainty for key value drivers of large oil and gas projects. Monte Carlo simulation is a powerful tool that can help evaluate what can happen to an investments future cash flows and summarize the possibilities in a probability distribution. This is particularly helpful in oil and gas project analysis since the outcomes from large investment projects are often the result of the interaction of a number of interrelated factors (or value drivers) that are highly uncertain. Risk analysis of oil and gas projects using Excel - Sensitivity analysis, sensitivity charts, and scenario analysis Advanced risk analysis using Monte Carlo simulation - Distribution fitting and correlation assumptions - 5 basic rules of thumb in choosing probability distributions - Three popular probability distributions for use in simulation models - Displaying and understanding output -- Tornado Charts, etc Modeling energy prices in capital budgeting risk analysis - Techniques and challenges in modeling energy prices - Modeling energy prices using mean reverting processes incorporating Poisson jumps Case studies and Excel applications Session Two: Case study applications and open discussion of crucial issues related to advanced capital budgeting and risk analysis Delegates will analyze case studies of actual international and Middle Eastern firms operating in the oil and gas industry to further explore issues covered in the sessions covered today. Attendees will also have the opportunity to discuss crucial issues facing them with delegates in attendance. Open discussion will follow with suggestions and recommendations. This is an excellent opportunity to interact in a stimulating group setting with other participants. Session Three: Current issues about derivatives and risk management in the Oil and Gas industry Oil and gas companies are facing many financial risks currently and risk management is a critical issue for these firms. Risk management encompasses the identification and assessment of the risks that materially affect company value and enterprise risk management addresses the implementation of a company-wide strategy to manage those risks. In this session, participants will learn about the following topics: - What do we mean by risk management and why do firms manage risks? - How hedging can increase firm value - Introduction to terminology and instruments used in the energy derivatives markets - Energy price volatility, types of derivative markets - Lessons from hedging mistakes: Recent hedging disasters Session Four: Advanced topics in hedging and risk management Do you need more knowledge or want to learn more about derivatives and hedging in this complex industry? If the answer is yes, this session is a must for you. Topics covered include: - Hedging, basis risk, and factors affecting basis - Petroleum and natural gas price risks and risk management strategies - Options (calls, puts, collars, floors, caps) - Energy swaps - Value-at-Risk (VAR) and Cashflow-at-Risk (CAR) - The Greeks (delta, vega, theta, rho, and gamma) and what they mean - Energy trading

DAY4
ADVANCED TOPICS IN VALUATION OF OIL AND GAS COMPANIES
Session One: Valuation of Oil and Gas companies using relative valuation using market comparables Part 1 Introduction to relative valuation for oil and gas companies Valuation of oil and gas companies using the Method of Comparables Valuing an IPO Most commonly used valuation ratios (multiples) and DCF valuation techniques for oil and gas companies Enterprise valuation using EBITDA and EBITDX multiples EBITDA and firm free cash flow Why use EBITDA/EBITDX multiples rather than cash flow multiples? Session Two: Valuation of Oil and Gas companies using relative valuation using market comparables Part 2 Valuing a privately held firm The effect of risk and growth potential on valuation multiples Adjusting the multiple valuation metric for the private oil and gas firm discount Equity valuation of an oil and gas firm using the price-earnings (PE) multiple Valuing a division using the PE method example for Exxon Mobils Chemical Division Case study applications Session Three: Case Study: Valuation of ExxonMobils Acquisition of XTO Energy using Relative Valuation Session Four: Open discussion of crucial issues from Days 1 through 4 In this final session of day 4, delegates will have the opportunity to further explore issues covered in the course. Attendees can choose cases to analyze that most closely match their areas of interest and will have the opportunity to work in a stimulating group setting with other participants. Delegates can share experiences, make suggestions, and query the group for their insights on topics of high concern in the oil and gas industry. This is an excellent opportunity to interact with other delegates in a stimulating group setting with other participants.

her discussion, in-depth knowledge, and cases used were very effective. Great course!
- Reliance Industries Limited (Oil & Gas, India)

COURSE CONTENT DAY5 ADVANCED TOPICS IN INTERNATIONAL


ACCOUNTING STANDARDS AND US GAAP FOR OIL AND GAS COMPANIES
Session One: Accounting for Hedging Under IFRS IAS 39 and US GAAP Financial Accounting Standards (FAS) 133 What are the current accounting standards as they relate to risk management? In this session, we will discuss these very issues as they relate to US GAAP and IAS. Topics included cover: - How should a company account to its shareholders for the derivatives it holds? - Example of a speculating position and hedging position - FAS 133 and IAS 39 (fair value hedge, cash flow hedge, speculative transaction) including definition of hedges, accounting of hedges, and criteria for hedging - Measuring hedge effectiveness under FAS 133 and IAS 39. - How should a company account to its shareholders for the derivatives it holds? Case study illustrations on risk management applications and mistakes in the Oil and Gas industry Session Two: Case study applications in hedging and risk management for oil and gas and accounting applications Session Three: Accounting for production costs and company evaluation Production costs refer to the costs incurred in the production phase. Typically these costs include the cost of producing or lifting the oil and gas to the surface, field treatment, field transportation, gathering, and storage. In this session, accounting for production costs will be covered. Topics covered include: - Typical production costs - Allocation of production costs - Crude oil production - Gas production - Performance measurement and evaluation - Revenue determination in joint operations Case examples Session Four: Course wrap-up In this final session, delegates will have the opportunity to further explore issues covered in the course.

WHY THIS EVENT


This workshop gives delegates crucial insights on the oil & gas industrys current and future prospects. Participants will develop key analytical skills & techniques in oil & gas capital budgeting, project evaluation, risk analysis & strategic planning. This course will also review the critical issues related to IFRS and IAS and its application to the oil & gas industry. Vital knowledge of derivatives and hedging will also assist in risk management & mitigation. The trainer, through years of experience in finance and the oil & gas industry, will conduct a dynamic and resourceful training that you wont want to miss! The combination of interactive presentations, hands-on exercises and open discussion groups along with real case studies, ensures you will obtain maximum value from attending.

WHO SHOULD ATTEND


Finance Managers and Directors Finance Controllers Accounting Managers Public Accountants & Auditors Financial & Business Analysts Staff Accountants in a Leadership Role Key personnel in the oil & gas industry

That is what learning is. You suddenly understand something you've understood all your life, but in a new way.
- Doris Lessing

COURSE SCHEDULE
8.00 8.30 10.30 - 11.00 12.30 - 13.30 15.00 - 15.30 16.30 Registration & Coffee/Tea Workshop commences Morning coffee/tea Lunch Afternoon coffee/tea End of day

MASTERCLASS: ADVANCED & EXPERT STRATEGIES IN OIL & GAS FINANCE AND ACCOUNTING

REGISTRATION FORM
Fax: +603 9205 7788 Tel: +603 9205 7778 Mobile: +6016 3326 360

05 - 09 MARCH 2012 HOTEL FUERTE MARBELLA SPAIN

Email: kris@360bsi.com

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IN-HOUSE TRAINING
360 BSI is passionate about providing strategic technical programs and high potential training solutions across the region to build personal competencies and organizational capability. You will receive practical training from a professionally qualified educator with over twenty years of teaching and training experience. Please feel free to mix-and-match topics from the areas listed below to get the right training content for your staff. Other topics may be available upon request.

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For Room Reservation, contact us for our corporate rates. Hotel Fuerte Marbella Avda. El Fuerte s/n. 29602. Marbella (Mlaga). Espaa Telephone: +34 95 286 15 00

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Closing date for registration is 27th February 2012. The fees cover lunch, tea breaks, materials and certificate. Official confirmation will be sent, once registration has been received. Participants will need to arrange their own accommodation. Attire: Smart Casual

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Cancellations/Substitutions
Substitutions are welcome at any time. Please notify us at least 2 working days prior to the event. All cancellations will carry a 10% cancellation fee, once a registration form is received. All cancellations must be in writing by fax or email at least 2 weeks before the event date. Cancellations with less than 2 weeks prior to the event date carry a 100% liability. However, course materials will still be couriered to you.

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COURSE FEES

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PAYMENT DETAILS
Payment is required within 5 days upon receipt of the invoice.
Bank transfer: 360 INTERNATIONAL LIMITED Standard Chartered Bank P.O.Box 999 Al Fardan Building, Al Mankhool Area, Bur Dubai, Dubai, U.A.E Account No: 02-2077311-01 USD Swift No: SCBLAEADXXX IBAN No: AE920440000102207731101

USD 4,495 per delegate USD 4,200 per delegate -

register before 15-DEC-2011

The fee does not include any taxes (withholding or otherwise). In case of any taxes applicable the client has to ensure that the taxes are paid on top of the investment fee paid for the course. Compliance with the local tax laws is the responsibility of the client.

* Save up to 50% for In-house Training program

All payments must be received prior to the event date


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360 BSI (M) Sdn Bhd (833835-X), Level 8 Pavilion KL, 168 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia.