Sellers should not become married to a dollars-per-barrel-equivalent scale, says Scott Rees, president and chief operating officer of Dallas-based reservoir-analysis firm Netherland, Sewell & Associates Inc.

"We believe wholeheartedly in cash flow," he told attendees at a Society of Petroleum Engineers-Gulf Coast Section business-development program recently. "That's the metric the buyers follow and that's what the market follows also."

The hardest deals to negotiate are the ones in which the seller wants to sell at an inferior price because "it's the best sale they've ever seen," he added. Rees also suggests asset-marketers and clients go to the field and see the assets first-hand instead of dealing completely with figures and data.

Reservoir-analysis firm H.J. Gruy & Associates Inc. president Marilyn Wilson said a more balanced view of a property's worth can come from independent analysis. "A lot of times our clients are accepting the geology and figures from the seller," she said.

A key buyer disadvantage is limited time to close the deal. "I can devote 100% of my time to your seven-day deadline," she said, while the buyer has other business obligations.

Independent analysis can provide additional credibility to a deal, especially if a buyer is seeking financing.

"Lack of independent third-party review is the No. 1 red flag in our industry," Wilson said.

Along with providing financial details and legitimacy to a deal, third-party consultants give buyers comfort, said analysis firm Gaffney, Cline & Associates senior vice president, Americas, Robert Lloyd George.

"We are giving opinions on opportunity, giving people ideas on how this fits in their portfolio," he said. "At the end of the day, what we're trying to do is convey understanding of that opportunity." Reports should not be pages of technical jargon or just a one-page synopsis, but put in a form that is comfortable to the client.

Sometimes consultants are necessary to "save the buyers from themselves," he added. "A little bit of preparation and communication is worth weeks of misunderstanding."

International deals in particular require third-party consultants, especially when individuals are not familiar with deal metrics, he said.

Buyers or sellers shouldn't get hung up on using just one deal value to evaluate the property, George added.

"I'm a firm believer in using every piece of data out there when forming a valuation."