AKILI’S XSTREAM OIL & GAS SAP ERP ALL-IN-ONE SOLUTION

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Founded in 1992• We have over 20 years of successful implementations for the

Fortune 1000 with client relationships of the same length.

Headquartered in Dallas• Locations in Houston, and Denver.

Providing the best-of-breed services• A combination of consulting and technology to help our

clients compete like never before.

“Akili” (uh • kē’ • lē)

• Means knowledge in Swahili.

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REAkili Core Services

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Enterprise Resource Planning

• Systems• Data• Program/Project Management

Enterprise Performance Management (EPM)

• Planning, Budgeting, & Forecasting • Financial Consolidations• Profitability & Cost Management

Business Intelligence (BW/BI)• Data Warehousing• Enterprise Architecture Design &

Implementation• Enterprise Information Services

Cloud Services• Cloud based platforms and

applications for Operations, Finance, and Sales

Change Management• Organizational Change Management• Training• Business Process Workshops

WHY SAP, AKILI, AND THE XSTREAM OIL & GAS SOLUTION

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REWhy SAP, Akili, and the XStream Oil & Gas Solution

Growth platform – Current & Future• Single, scalable platform based upon all SAP standard solutions• Meets ALL of your current & future requirements• Compliance: IFRS, Sarbanes-Oxley, EH&S, …

Upstream Oil & Gas Industry Focus• Delivers RAPID time to value; minimizes risk• Industry best practices – built in• Customer & industry/cross-industry participation Drives Innovation• SAP & Akili = a low-risk, high-gain partner

Operational Excellence & Standardization• Pre-integrated solution provides single source of the truth; company–wide• Standardized, Industry business practices to eliminate cost overhead• REAL-TIME information improves insight and efficiency for proactive decision–making

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REHow do you want to be managing your project?

Whiteboard and Individual Expertise? Preconfigured Business Solution?

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REFocused, Agile Implementation Activities

> 60% of all SAP ERP implementations are accomplished in less than nine months

Implementation Time< 3 months4 - 6 7 - 9 10 - 12 13 - 15

0

10

20

30

40

50

%

16%

24%

21%

16%

9%

> 15

14%

Small companies (< $200M)Midsize companies ($200M - $2.5B) Large companies (> $2.5B)

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REWhat are SAP Best Practices?

Traditional Approach

SAP All-in-One Solutions SAP Best Practices

help.sap.com/bestpractices• 35 + years of industry

experience that can be rapidly deployed into an SAP Environment to solve real business process issues

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Same base software as:200k + Customers

50 Countries40 + Industries

SAP ERP

SAP Technology

SAP Best Practices

SAP ERP

SAP Technology

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RESAP Expertise and Traction

• ExxonMobil• Royal Dutch Shell• PetroChina• Chevron• Gazprom• BP• Petrobras• Total• Sinopec• ENI

• Statoil• Rosneft• Lukoil• ConocoPhillips• CNOOC• Ecopetrol• Schlumberger• Reliance

Industries• Phillips66• Repsol YPF

Barrels per day of oil is produced by SAP’s oil and gas customers

>70 million Industry-driven: robust advisory councils ensure alignment

Deep industry-specific capabilities

Clear industry road map

800+ O&G customers worldwide

40 years of delivering value to O&G

Largest O&G Companies

85%

Fortune 2000Oil & Gas

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REWhat is Akili’s XStream Configuration?

SAP Technology

SAP ERP

SAP’s Best Practices

Akili’s XStream Configuration• Specific configuration not provided

under SAP’s Best Practice.• Focused on Production, Revenue,

Ownership, and Joint Venture Accounting.

• Based upon 20 + years of Oil & Gas experience delivery large, complex projects.

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Traditional Approach

Akili’s All-in-One Solution

SAP ERP

SAP Technology

SAP Best Practices

SAP ERP

SAP Technology

Akili’s XStream Configuration

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RECompany Changes are Minimized

SAP Technology

Company Requirements• Company Personalization and

Value Orientated Gaps are identified to be updated into the solution creating the Company’s Template Solution.

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SAP ERP

SAP Technology

SAP Best Practices

SAP ERP

SAP Technology

Akili’s XStream Configuration

Traditional Approach

Akili’s All-in-One Solution

Company Requirements

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The Company’s solution is:• Highly leverageable for

Mergers & Acquisitions.• A Focus of continual Business

Process Improvement.• Extendable to new innovative

business processes.

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SAP ERP

SAP Technology

SAP Best Practices

SAP ERP

SAP Technology

Akili’s XStream Configuration

Traditional Approach

Akili’s All-in-One Solution

Company Requirements

BI Case Studies

AKILI XSTREAM OIL & GAS

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REStrategic Roadmap for XStream

XStream is the foundation of a suite of product offerings by Akili to serve the Upstream Oil & Gas Industry. Each of Akili’s products is focused upon preparing the systems, preparing the data, and preparing the people. The value to customers is Akili’s skills and knowledge to manage complex multi-faceted projects.

Get System Ready Get Data Ready Get People Ready

Program Management

Strategic Roadmap & Program Management Overview

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Akili’s Oil & Gas Solution Offerings

Well Management from Concept to

Production

Master Data Governance

Processes and Tools

Manage Well Delivery

Production

Revenue

Royalties

Tax and Regulatory Reporting

Run the Business

Joint Venture Accounting

Technology Solutions

Communication

Training

Process Mapping

Data Stewards

Manage Organization

Asset Management

ARO

Financial Consolidations

Statutory Reporting

Budgeting & Forecasting

Management Reporting

Measure Performance

Business Intelligence

Dashboards

Business Process Re-engineering

Internal Audit

SOX

Process Execution (SigmaFlow)

Data Conversion

Data Integration

Master Data Management

Manage Data

Data Governance

Data Strategy

SigmaFlow

HANA Cloud Mobility

System Ready Data Ready People Ready

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REAkili’s XStream Upstream Oil & Gas Solution

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Akili’s preconfigured solution is template based, built from SAP Best Practices and Industry best practices aggregated from our experience implementing SAP Upstream solutions at many large and small Oil & Gas companies.

Akili’s XStream Solution• Quickly focuses the discussion

around key business processes• Baselines standard financial

processes around Oil & Gas Accounting

• Provides standards for master data conversion

• Creates an overall lower risk and increased value for companies

Scope• Program Management• Production Management• Revenue Accounting• Cost Accounting & Reporting• Financial Accounting• Joint Venture Accounting• Data Conversion

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REAkili’s XStream Upstream Oil & Gas Solution – Detailed Scope

Production Management

Production Master

Production Volume

Allocation

Regulatory Reporting

Revenue Accounting

Revenue Valuation

Owner Disbursement

Ownership

Contracts

Revenue Cash Receipts

Tax & Royalty Reporting

Joint Venture Accounting

Joint Operating

Agreements

Joint Interest Billing

Overhead Calculations

Cost Accounting &

Reporting

Cost Center Management

Cost Allocations

Lease Operating

Costs

AFE/Project Costs

Financial Accounting

General Ledger

Accounts Payable

Accounts Receivable

Asset Accounting

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REAkili’s Industry Configuration Included with the solution are the following components:• Data Migration Templates• Configuration Rational• Business Process Procedures• Test Scenarios

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Akili’s Upstream Data Conversion Solution

• Accelerate the legacy data conversion and load process with pre-built Data Services based data staging area

• Over 70 pre built SAP Load Objects are delivered in our pre-configured solution• Well Data• Delivery Networks• Division Order• Business Associates• Joint Operating Agreements• WBS Elements• And more… all critical data necessary to support rapid implementation of

our pre-configured solution • Standard error handling and delta load objects• Standard Data Validation Reporting• Begin first data conversion loads within 60 days

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Pre-Configured Migration Content to Support the Entire Data Migration Process

• Data extraction: SAP BusinessObjects Data Services tool helps to connect to most known legacy systems to extract legacy data (master & transaction)

• Data mapping: Data mapping and restructuring functionality supports all the major master data business objects required to configure SAP Business All-in-One as the target system

• Data validation: Contains predefined content for business logic validation and data quality improvement. Dashboards to identify and visualize data errors early in the process

• Data load: Contains program to activate the Idoc’s needed for the data migration process• Reconcile data: Right data to support the business process

AKILI DATA MIGRATION

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BI Case Studies

AKILI’S XSTREAM OIL & GAS SOLUTION DEMO

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Demo CustomerName: ANGW ExplorationLocation: TexasProduct Mix: Oil & GasReason for demo:• Looking to expand footprint across U.S. through strategic acquisitions.• Focused on driving consist business process within the company to drive cost

down

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REMonth in the Life of an Upstream Oil & Gas Company

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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REManage Production Volumes

Manage Production Volumes1. Establish Delivery Network

2. Enter Production Volumes

3. Allocate Production

4. Complete Production Reporting

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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DEMO

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Manage Production Volumes1. Establish Delivery Network

2. Enter Production Volumes

3. Allocate Production

4. Complete Production Reporting

Value• Flexibility to enter production daily

activities

• Volumes are available for revenue process and cost accounting

• Reporting capabilities for production and regulatory activities

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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REMaintain Ownership Records

Maintain Ownership Records1. Establish Properties or Ventures

2. Maintain Title Records for Properties or Ventures

3. Integrate the Well Relationship

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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DEMO

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REMaintain Ownership Records

Maintain Ownership Records1. Establish Properties or Ventures

2. Maintain Title Records for Properties or Ventures

3. Integrate the Well Relationship

Value• Focused on accurate and complete

ownership activity

• Ability to handle revenue based lease arrangements

• Tight integration throughout the business process of production and revenue

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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RECalculate Revenue

Calculate Revenue1. Allocating to Contracts

2. Establishing Pricing and Formulas

3. Relating Valuation Attributes

4. Processing Revenue

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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DEMO

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RECalculating Revenue

Processing Revenue1. Allocating to Contracts

2. Establishing Pricing and Formulas

3. Relating Valuation Attributes

4. Processing Revenue

Value• Single Version of the Truth between

Production, Revenue and Financials

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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REProcess Cash Receipts & Settlements

Process Cash Receipts & Settlements1. Establish Check Layouts & Property

Remitter Relationships

2. Process Checks/Settlement Statements

3. Review Entries

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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DEMO

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REProcess Cash Receipts & Settlements

Process Cash Receipts & Settlements1. Establish Check Layouts & Property

Remitter Relationships

2. Process Checks/Settlement Statements

3. Review Entries

Value• Ability to book revenue without

available production volumes

• Tight Integration with Excel

• Automatic A/R clearance

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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REFinancial Posting

Financial Posting1. Review Entries from Revenue

2. Post Revenue Entries to General Ledger and JVA

3. Complete Financial Reporting

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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DEMO

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REFinancial Posting

Financial Posting1. Review Entries from Revenue

2. Post Revenue Entries to General Ledger and JVA

3. Complete Financial Reporting

Value• Single Version of the Truth between

Production, Revenue and Financials

• Tight Integration with Financial Reporting

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

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REMonth in the Life of Upstream Oil & Gas Company

Manage Production

Volumes

Maintain Ownership

Records

Calculate Revenue

Process Cash Receipts/Settleme

nts

Financial Posting

Value• Single full integrated financial and

reporting system of record

• Ability to integrate 3rd party applications in the business process

• Native Microsoft Office integration

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OIL & GAS ENTERPRISE RESOURCE PLANNING CASE STUDIES

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Oil & Gas Integrated ERP & BPC Solution

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Samson Resources• After oil and gas company Samson Resources was acquired by a private equity firm in November 2011, the

company quickly began eying a future IPO. However, the firm faced a challenge: complex E&P accounting processes required a multitude of non-integrated offline models and manual intervention. A centralized mechanism would be critical to accomplishing Samson’s ambitious vision of the future, and time was of the essence.

Project BenefitsSAP system integration has allowed Samson increased visibility into the financial close and reporting process across several key business areas:• Finance and Controlling• Project Systems• Production Revenue Accounting• Joint Venture Accounting

By implementing a pre-configured SAP solution that integrates with production and operations systems, businesses can maximize back office process efficiency, even in complex accounting environments like those found in E&P firms.

Project HighlightsQuick implementation demanded willingness to fit the business to the pre-configured solution Rapid deployment required strong data conversion practices, including:

• Defining a clear process and architecture to support the conversion• Starting data clean-up early• Performing extensive transactional testing on converted data• Testing early and testing often

A strong business champion is vital to the success of the implementation

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Oil & Gas Implementation and Conversion

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SM Energy• SM Energy Company is an independent energy company engaged in the acquisition, exploration,

development, and production of crude oil, natural gas, and natural gas liquids in onshore North America. The company operates in four core areas : Mid-Continent, Rocky Mountain, Permian, and South Texas & Gulf Coast regions.

• SM Energy began a project in the spring of 2013 to implement SAP’s Upstream Oil and Gas solution. In January of 2014 SM Energy asked Akili to perform an assessment of the program. Following Akili’s review and recommendations SM Energy requested Akili to assume Program Management of the project. Akili has successfully implemented several program initiatives that have altered that direction and progress of the project and it is now moving to a successful implementation. Akili is now responsible for Program Management, Data Conversion and Integration.

Project• In order to support the strong growth that SM Energy is experiencing SM Energy selected SAP’s Upstream Oil

& Gas solution in 2013. The project was initiated in 2013 by another vendor. Akili was engaged in early 2014 to assist with the implementation.

Focus Areas• Program Management• Data Conversion• System Integration

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Oil & Gas System Selection and Integration

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Burlington Resources• Prior to being acquired by ConocoPhillips in 2006, Burlington Resources was one of the largest independent

oil and gas companies in the US (especially in terms of proved reserves) and a top producer of natural gas in North America. Burlington had estimated proved reserves of 12.5 trillion cu. ft. of natural gas equivalent (TCFE). Most of the company's production was from North America, where Burlington operated in the San Juan Basin, the Gulf of Mexico, the US midcontinent region, and western Canada. Burlington also has operations in the East Irish Sea and North Sea and in Asia, Latin America, and North and West Africa.

Project• Akili led a project team through the system selection process to identify a new reserves system. • Akili led multiple business process improvements in the Financial and Land areas.• Burlington embarked on a multi-year strategy to replace the existing systems portfolio. This strategy include

using purchased and custom developed applications. Akili defined a comprehensive integration strategy and architecture that supported the transition from the legacy systems to the new portfolio of solutions. Akili successfully implemented this strategy in support of the overall program.

• Akili provided managed services in support of Burlington’s database administration and integration platform for many years.

Focus Areas• System Selection• Integration• Program Management• Business Process Reengineering

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Akili focuses on business needs as much as technical needs. Our projects are not deemed complete or successful until the stated business objectives are met.

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REWhy Akili?

Akili differentiates itself from most consultancy firms and systems integrators in that we are:

• Accountable & responsible • Results-oriented• Independent / aggressive• Steeped with experienced • professionals• Proven via a successful track record• Holistic in our viewpoint

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People

ProcessTechnology

“Akili’s logo reflects our commitment to the delivery of balanced solutions.”

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RESampling of Akili’s Oil & Gas Clients

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ContactsAkili Inc.sales@akili.comwww.akili.com

Dallas400 Las Colinas Blvd. East, Suite 450Irving, TX 75039972.210.3200

Denver999 18th Street, Suite 3000Denver, CO 80202303.357.2397

Houston3200 Southwest Freeway, Suite 3300Houston, TX 77027713.840.6016

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Sales:sales@akili.com

Megan O’ConnellSales Executivemoconnell@akili.comOffice: 281.667.9310Cell: 832.967.8827

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