We believe the level of expertise and quality of due diligence in the oil and gas acquisition market right now is sub-par. It is why Russ Darbyshire decided, after working over 30 years in the oil and gas business, to focus on just the acquisition and divestment of oil and gas properties and in particular, due diligence.
Russ is the Managing Member of Mesilla (“mee-see-uh”) Energy Acquisition LLC. Russ has been involved in the due diligence of production acquisitions and divestments since 1981, performing due diligence on 10+ oil and gas asset sales over the span of his career, either as a manager, or as a consultant working in data rooms, in almost all the major producing regions of the Lower 48. His latest project was managing a 2 year due diligence effort for a $200mm acquisition of minerals in the Marcellus shale play.
We have always felt that Land brokerage firms are ill-equipped to run due diligence projects. Throwing bodies at jobs by advertising at the last minute in LandNews or CareerBuilder for anyone that will apply and paying low wages does not get the best people. Mesilla is not a Land brokerage firm. We manage the Due Diligence Trust™ network of independent contractors and it’s these Trust Members that make the difference. The collective wisdom and experience of these Trust Members, plus their work ethic, is what matters and becomes evident with every due diligence job that is undertaken.
We at Mesilla are always trying to innovate. The Diligence DataBank™ is one example of our efforts to streamline and make more efficient the communication link with our clients, as well as insure a high standard of examination by the Trust in our due diligence projects. Another area of innovation is how we charge our clients. Russ has always been concerned with the traditional “day rate” structure utilized by consultants, charging an hourly or daily rate, because it disincentivizes productivity and efficiency. As a result of that, Mesilla has introduced Work Product Pricing (“WPP”). WPP charges the client for the work product produced in due diligence, not the hours worked. WPP is a game changer, as it allows the client to know upfront what a due diligence project will cost. To find out more about how WPP works, see our WPP FAQ’s.
Disclaimer: The “Due Diligence Trust” is not legal entity. The use of the word “Member” to describe those who are part of the Trust, is used for descriptive purposes only and does not imply a position in any corporate entity.