Client
Our client is a large Canadian energy company with operations spanning heavy oil, natural gas, condensate production, and oil sands development.
Challenge
DMA had successfully partnered with the client on Gas Cost Allowance (GCA) reviews for several years. Following the acquisition of an oil sands project, the client recognized an opportunity to evaluate whether all eligible royalty recoveries associated with the newly-acquired operation had been properly identified and claimed.
Because the project had previously been managed by another operator, historical reporting practices and available supporting documentation varied, creating potential challenges in identifying all recoverable costs.
Solution
DMA expanded its relationship with the client to include a comprehensive review of the acquired oil sands operation. The engagement included an in-depth analysis of end-of-period royalty statements, operational activities, project expenditures, and historical records from both the current and former project operators.
DMA’s Crown royalty experts performed a detailed comparison of available data sources to identify inconsistencies, validate existing claims, and uncover eligible expenditures that had not been previously captured.
Result
Through our review, DMA identified multiple opportunities to improve the project’s royalty position, including eligible Authorizations for Expenditure (AFEs) and project-related costs that had not been consistently claimed.
By evaluating both historical and current operator data and correcting claim deficiencies, DMA uncovered more than $2 million in royalty recoveries for the client.
Key outcomes included:
- Identification of previously unclaimed eligible project expenditures
- Discovery of inconsistencies between historical and current reporting practices
- Improved accuracy and completeness of royalty claims
- More than $2 million in recoveries through amended project filings
Supporting Success Beyond the Initial Review
The engagement further strengthened DMA’s longstanding relationship with the client. In addition to royalty recovery services, the client regularly relies on DMA for audit support, acquisition and divestiture assistance, and ongoing royalty advisory services.
By combining technical expertise with responsive service and proactive communication, DMA continues to help clients maximize recoveries, reduce risk, and navigate the complexities of Crown royalty compliance with confidence.
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