The standard of value required by the IRS for estate tax purposes. FMV represents the price at which a property would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the facts, and neither being under any pressure to buy or sell. Unlike “book value” or “investment value,” FMV is designed to reflect a neutral market price as of a specific valuation date.

A specialized appraisal required by the IRS when someone passes away. It establishes the taxable value of the decedent’s assets—such as oil and gas properties, so estate taxes can be calculated. The valuation must follow IRS rules under Section 2031, which specify acceptable methods, assumptions, and reporting standards.

The Execution phase involves drilling the well and demands 24/7 field coordination, continuous communication, and active risk management. Pre-spud preparations include Drilling the Well on Paper (DWOP) session, rig mobilization, and alignment of all personnel and services. Drilling operations follow the program closely, with real-time monitoring via surface and downhole sensors. KPIs such as rate of penetration (ROP), non-productive time (NPT), and cost per foot are tracked to optimize performance. Daily reports, cost control, logistics management, and ongoing safety audits ensure full control of operations throughout this phase.

One of IPT’s distinguishing strengths in the industry is its approach to field execution supervision. IPT provides 24-hour wellsite coverage with both drilling and HSE supervisors to ensure the drilling program is executed precisely as planned. All IPT wellsite supervisors are trained in our Management Integrity System and hold the necessary regulatory certifications. This structured approach ensures that execution is consistently driven by a proven process, not by individual interpretation or best-effort approaches.

Running concurrently with execution is the Monitoring and Controlling phase, which ensures the well is drilled safely, efficiently, and within budget. Progress is tracked against the plan (e.g., time vs. depth, actuals vs. AFE) using FieldPro software, configured internally to align to IPT processes, with a target of keeping actual costs within 5 percent or less of estimates. Performance benchmarking, variance analysis, and proactive change management allow for dynamic adjustments to the plan. Quality assurance of materials and services is maintained, while regular updates are shared with the client to ensure transparency and alignment.

The official tax form used to report the estate’s value to the IRS. It includes schedules for real estate, securities, business interests, and natural resource properties like oil and gas. An estate tax valuation report, like the one IPT provides, is often attached as supporting documentation.

Oil and gas reserves that are already producing from existing wells. These reserves have the highest certainty and generate current cash flow. They are a critical part of the estate’s appraised value because they represent income-producing assets.

Reserves that are reasonably certain to exist but require drilling new wells or significant capital investment before they can produce. PUDs add value to an estate but are riskier than PDP reserves, so they are discounted more heavily in a valuation.

The primary approach for valuing oil and gas assets. It involves projecting the future cash flows a property is expected to generate (revenues minus expenses) and then discounting those amounts back to today’s dollars using an appropriate discount rate. DCF reflects both the earning potential of the asset and the risks of achieving those earnings.

The percentage rate applied in a DCF analysis to bring future cash flows into present value terms. A higher discount rate lowers the appraised value, reflecting higher risk. In oil and gas estate tax valuations, typical industry ranges are 10–15%, depending on the risk profile of the reserves.

The percentage of production revenue an owner receives after royalties and other burdens are deducted. For example, if a well produces 100 barrels and an owner has a 20% NRI, they receive revenue from 20 barrels after royalty owners are paid.

The share of ownership that carries both the rights and obligations of an oil and gas property. Owners with WI must pay their share of operating costs, capital expenditures, and taxes, but in exchange they receive their proportionate share of revenues.

Categories used by petroleum engineers to define the certainty of oil and gas resources:

• Proved: Reasonably certain to be recoverable under current conditions.

• Probable: Less certain, but more likely than not to be recoverable.

• Possible: Lower probability of recovery, but still potentially economic.

A set of forecasted prices for oil, gas, and natural gas liquids (NGLs) used in economic models. Price decks may be based on historical averages, published futures prices, or company forecasts. The assumptions made here have a large impact on valuation results.

Funds required to develop and maintain oil and gas assets. This includes drilling new wells, completing PUDs, upgrading facilities, or performing major workovers. In valuations, CapEx is deducted from projected revenues before calculating net cash flow.

Day-to-day expenses of running oil and gas properties, such as labor, electricity, water disposal, repairs, insurance, and regulatory compliance costs. These reduce net revenue and must be factored into valuation forecasts.