Gossans Extraction economics & production optimisation
Discipline
Reservoir, mine planning and project economics on one model
Sectors
Oil & gas, coal, helium, uranium, rare earths, lithium, industrial minerals
Clients
Operators, private capital, royalty funds, reserve-based lenders
Engagement
Fixed fee, fixed scope, no software licence

Your production data already holds the answer. It is usually being read wrong.

We rebuild your assets as one auditable economic model, fit it to what they actually produced, and hand you a ranked list of what to do next with a price and a probability on every line. Not a dashboard. A decision.

14%
How much one in-house model overstated its own project's value, from a single timing error nobody had reason to look for.
One basis
A coal mine and a shale pad valued the same way, so their competing capital requests can finally be ranked against each other.
Two weeks
From two spreadsheet exports to a reconciled model and a written finding. That is the entry engagement, and it is fixed fee.
PositionWhat we sell

We do not sell software. We sell the finding.

Every operator already owns a model. It lives in a spreadsheet, it was built by someone who has since left, and nobody has checked it against what the asset actually did since the year it was made. The tools that would replace it are licensed by the seat, siloed by commodity, and priced for a major.

Gossans works the other way round. We bring the modelling engine, you bring the data, and what you receive is a study: a written report, the underlying model files, and a workshop with the people who run the asset. There is no seat to license and nothing to administer after we leave.

The engine handles the physics each commodity actually has. Wells decline on a hyperbolic curve nobody chooses; mines run at a rate somebody does choose, against a strip ratio that climbs; uranium leaches on its own kinetics years after the wellfield was paid for; helium is separated out of a gas stream that is declining underneath the plant. One cash-flow engine values all of them, which is what makes the comparison honest.

ServicesFixed fee, fixed scope

What we do, and what it costs

Fees are fixed on scope agreed before we start. Travel and third-party data are billed at cost. Multi-asset work is discounted against the portfolio rate rather than repeated per asset.

Asset Health CheckStart here

One producing asset. We rebuild it from your own production and cost history, fit the decline or the mine schedule to outturn, and report where your current forecast is wrong, in which direction, and what the error is worth. Two spreadsheet exports is usually all we need.
2 weeks
1 asset
$14,500fixed

Opportunity Screen

Everything that could be improved on the asset, tested one at a time by re-running the whole model. We workshop the cost and the odds of each with your operations team, then rank them on risked value so a study competes fairly with a capital project.
4 weeks
1–3 assets
$46,000fixed

Debottleneck & Sizing Study

For a live expansion question. We shadow price every constraint by relaxing and tightening it against the full model, then size the dial with its capital properly coupled. The output separates what is binding from what is merely large.
4 weeks
1 facility
$52,000fixed

Portfolio Capital Allocation

Five to twenty assets on one valuation basis. A single ranked ledger of every priced opportunity across all of them, an exact allocation of your budget, and the value-against-budget curve that shows where more capital stops buying more value. Board-ready.
8 weeks
5–20 assets
$128,000fixed

Transaction Diligence

An independent model of an acquisition or a lending target, built from public filings and the data room. Breakeven price, downside distribution, and a written list of the assumptions the seller's model is carrying that ours would not.
3 weeks
per target
$38,000fixed

Model Build & Handover

You keep the model. We build your assets as version-controlled scenario files, train two of your analysts to run and change them, and leave the documentation. Every assumption is one line in a text file, so next year's change is a diff rather than an archaeology project.
6 weeks
+ training
$72,000fixed

Quarterly Reforecast

For assets we have already modelled. We re-run against the latest actuals, decompose the variance into volume, price and cost, and flag any parameter that has drifted far enough to need refitting. Bought per quarter, not by subscription.
per quarter
existing model
$9,500per run

Advisory & Expert Support

Board papers, lender questions, reserve committee support, and second opinions on someone else's model. Billed by the day against a scoped block.
by the day
min. 3 days
$3,200per day
DataWhat we ask forand where it comes from

The data request is one page long

The most common reason a modelling project stalls is a data request that reads like a discovery motion. Ours does not. For a producing asset in the United States, roughly two thirds of what we need is already public, and we pull that ourselves before asking you for anything.

From you, once

  • Monthly volumes by well or by pit, with producing days and active well count CSV export from Enertia, Quorum, W Energy, P2 or your own sheet
  • Monthly operating cost by lease or by cost centre General ledger export; account detail is useful, not required
  • Authorisations for expenditure and actual capital spent One row per well, pattern, or major package
  • Realised price by month, or the revenue distributions it comes from This is where basis and quality deducts become visible
  • Lease and fiscal terms: royalty, working interest, net revenue interest, severance and ad valorem rates Usually one page from the land department
  • Optional, and worth having: downtime and workover logs, water disposal contracts, offtake terms These turn a good model into a defensible one

We collect ourselves

  • Well-level production and completion records Texas RRC, PA DEP, Wyoming OGCC, NDIC, OCD and equivalents
  • Mine production, employment and hours MSHA quarterly data, published per mine ID
  • Reserves, grades, recoveries and cost estimates on comparable projects SK-1300 filings on SEC EDGAR; NI 43-101 on SEDAR+
  • Price history, basis differentials and heat content EIA series, published index settlements
  • Deposit type, host geology and analogue parameters USGS Mineral Resources Data System, national assessments
  • Peer cost structures and capital intensity Public company filings, back-calculated per unit

Nothing leaves our custody. Data arrives under an NDA signed before the request goes out, is held in a single-client workspace, and is returned or destroyed at your instruction when the engagement closes.

MethodWorked exampleData to decision

What actually happens to the data

The engagement below is a representative example, modelled on a six-well tight oil pad. The figures are model output used to show the method, not a named client's results.

Six-well pad · Delaware Basin · 34 months of history Illustrative engagement
01

What arrived

Two CSV exports. Monthly oil, gas and water by lease with producing days and well count; monthly operating cost from the ledger. Plus one page of lease terms. Nothing else was requested.

02

What the existing forecast said

The in-house model fitted a single decline curve to total field rate. Three more wells had come online in month twelve, so the rate rose in the middle of the history and no decline curve could fit it. The regression was reported without its quality measure.

fit to field rate R² 0.15 implied pad recovery 5.0 MMbbl b exponent 0.00 which is a straight exponential
03

What we did to it

Normalised rate per producing well, so adding wells stopped looking like a reservoir doing something impossible. Segmented the history at the last step up in rate, so the fit saw one curve instead of two vintages. Dropped the flowback month. Fitted on the logarithm of rate, because production spans two orders of magnitude and a fit on raw rate ignores the tail the reserve lives in.

fit per well R² 0.977 recovery per well 705,000 bbl initial decline 54% secant b exponent 1.00 independent type curve 725,000 bbl — agreement within 3%
04

What that changed in the economics

The annual model charged drilling capital and first-year flush production to the same period, which flatters the cash flow a discount rate weights most heavily. Separating spud from first sales moved two numbers that matter to different people.

net present value $80.6M$70.8M overstated by 14% peak capital exposure $0.8M$30.9M the number treasury needs
05

What we recommended

Four improvements were priced with the operations team and ranked on risked value. The one everybody wanted did not survive it. The one that ranked first needed no capital at all.

renegotiate basis marketing cost $0 risked +$1.0M 45% odds pit-side water recycling cost $6.5M risked −$3.3M 90% odds refrac three parent wells cost $9.6M risked −$6.7M 55% odds convert tail to gas lift cost $2.4M risked −$2.4M worthless

The gas lift conversion returned nothing because the recovery cap already bound the well: flattening the tail moved no barrels. That is not a judgement about gas lift. It is what this asset's own physics says, and it is invisible without a model that carries it.

FindingsRecurring defectsRedline list

Eight ways a production model quietly lies

These are the errors we find most often, in models built by competent people. Each one is invisible in the output and each one moves the answer in the same direction, which is toward approval.

Decline fitted to field rate instead of per-well rate

Adding wells makes total rate rise. No decline curve can fit that, so the regression collapses onto a straight exponential and the recovery estimate follows it.

R² falls from 0.98 to 0.15.
Recovery misread by a factor.

Decline quoted on the wrong basis

A "70% decline" is three different numbers depending on whether it is secant, tangent or nominal. Type curves are quoted one way and modelled another more often than not.

15–25% on estimated
ultimate recovery.

Capital and flush production in the same period

A well spudded during a year does not produce for that whole year. Charging both to period one moves cash into exactly the period a discount rate rewards most.

14% overstatement of value.
Peak funding need hidden.

Constant strip ratio, constant grade

A pit deepens and its best ore goes first. A mine modelled at one strip ratio and one grade across its life is not conservative; it is describing a different mine.

Unit costs understated
across the back half.

Reclamation capitalised rather than expensed

By the time closure is paid there is no production left to depreciate it against. Pooled into capital under units of production, the deduction is stranded entirely.

Real cash, and it lands
in the terminal years.

Nameplate mistaken for a bottleneck

A plant can be exactly the right size while something upstream is binding. Expansion capital is routinely proposed against the constraint that is easiest to measure, not the one that is holding the asset back.

Capital spent where the
shadow price is zero.

Opportunities ranked on gross uplift

Every asset team's best idea wins its own study, because none of them carry a cost or a probability. Ranked on risked value across a portfolio, the ordering usually inverts.

The free commercial fix
loses to the big project.

Variance reported as a single number

"We were eleven million light" points nobody at anything. Split into volume, price, cost usage and cost rate, the same eleven million names the department that can act on it.

A month of argument,
every month.
ProcessHow an engagement runs

Six steps, and the first two are free

  1. Scoping call45 minutes, no charge

    What the asset is, what decision is pending, and whether we are the right people for it. We will say so if we are not.

  2. Data request and NDAOne page, no charge

    Sent after the call, scoped to the specific asset. We start collecting the public half while you assemble yours.

  3. Build and reconcileWeek 1–2

    The model is built and then fitted to what the asset actually did. Any gap between the two is reported before anything is optimised, because a model that has not been checked against outturn is an opinion.

  4. Costing workshopHalf a day, on site or remote

    Your operations and engineering people put a cost, a probability and a lead time on each candidate improvement. We supply the value; they supply the judgement. This is the step that makes the ranking defensible.

  5. DeliveryWritten report and read-out

    A self-contained report, the model files, the year-by-year cash flow as a spreadsheet, and a two-hour session with whoever needs to act on it.

  6. Re-run, when you want itPer quarter, optional

    The model stays yours. We re-run it against new actuals when it is useful to, and not on a calendar because a subscription says so.

ScopeBoundaries

What we are not

×Not a reserves certifier. We do not sign SK-1300 or NI 43-101 reports and we are not a qualified person for that purpose. Our work supports a reserves process; it does not replace one, and anybody who tells you otherwise is selling something.
×Not a software vendor. There is no seat, no licence and no renewal. If you want the model in-house, we build it and hand it over once.
×Not a data provider. We use public sources and yours. Where a commercial subscription is genuinely needed, we say so and it is billed at cost.
×Not a price forecaster. We take your price deck, or a published one, and tell you how wrong it can be before the answer changes sign. That question is answerable; the other one is not.
NameEtymology

Why Gossans

A gossan is the iron-stained crust that forms where an orebody reaches the surface and weathers. It is not the ore. It is the rust the ore leaves behind, and for most of the history of mining it was the only evidence anyone had. A prospector who could read a gossan knew roughly what lay underneath, how deep, and whether it was worth the shaft, before a single metre was drilled.

That is the discipline this firm is named for. Your production history, your cost ledger and your public filings are the surface expression of an asset whose real behaviour is underground and cannot be observed directly. The data is already there, and it is already telling you something. The work is reading it correctly.

The name is plural because the work is. One reading tells you about one asset. The comparison across a portfolio, on a single consistent basis, is where the decisions actually get made.

NextStart here

Send us one asset and two spreadsheets.

The Health Check exists to be the cheapest possible way to find out whether we are worth the larger engagement. Two weeks, fixed fee, and a written answer either way.

Book a scoping call