Cerium develops relationships with operators that have a strong base of experience in their respective plays. We form lasting relationships with our partners that benefit all parties over a long investment horizon.
Cerium has deep experience in financial evaluation of oil and gas production. We gather structured and unstructured data from numerous sources to create unique databases of factors that impact the investment returns of producing properties. We leverage these databases with proprietary analytics systems to evaluate the probable and potential return of each lease and well.
These evaluation results are continuously back tested against our databases to augment the accuracy of our financial simulations.
Cerium manages production risk by diversifying investment geography, analytical evaluation of opportunities, and managing working capital to greatest advantage.
Cerium manages price risk in crude oil and natural gas with aggressive use of financial derivatives, including futures, options, and swaps. A significant portion of our production is hedged using costless collars, a derivative structure which includes buying a put to create a price floor and selling a call to establish a price ceiling.