Case Study — Beyond the Spreadsheet: How we Leveraged Leasehold Defects to Reshape a Major Ohio Acquisition

In the Ohio patch, proved undeveloped reserves (PUDs) are the engine of growth. on a seller’s spreadsheet, they look like guaranteed future production. But in the actual county records? Sometimes they are ghosts.

An existing client of ours, an operator we had supported for years with drilling title opinions, recently leveled up. They moved to acquire a massive set of PDP properties and PUD acreage in the heart of Appalachia. They didn’t call a generalist M&A firm to handle the asset-level due diligence. They called us. They knew that when the closing clock is ticking, you don’t need a generalist. You need specialists who actually understand how Ohio title works.

The “all hands” war room

This wasn’t a standard review. This was a high-stakes sprint where every single member of our Appalachia team was deployed. When a client is staring down a hard closing deadline on a massive acquisition, “amateur hour” is not an option.

Execution was tightly coordinated across the Appalachia team, with clear ownership at each stage. We implemented a structured workflow to ensure findings moved quickly into deal analytics. Dedicated war rooms and templates facilitated rapid incorporation of identified defects into NRI calculations.

We remained in close alignment with the client throughout. In a deal of this scale, the primary risk is loss of continuity. We avoided that by eliminating information silos. If a lease had “Pugh’ed out” or a depth severance affected PUD valuation, those issues were communicated as they were identified.

Finding the “zombie lease”

The value of specialized due diligence is often found in what is not apparent from the seller’s materials. During the review, our team identified a large acreage lease included in the transaction. Through a detailed review of the lease and its numerous amendments, we determined that the lease was no longer in effect as to certain acreage.

This was not a minor issue. It affected a portion of the assumed leasehold position and required released. By identifying it during diligence, the client avoided acquiring a defective interest and instead secured a new lease covering that acreage on revised terms. The results was a more reliable leasehold position aligned with the client’s development plans.

From title lawyers to strategic advisors

We didn’t just provide a list of problems. We provided a playbook.

Our team took a comprehensive approach to defect identification. We prioritized identification of issues most likely to affect value, from HBP status concerns to complex curative matters. This gave the client the ultimate leverage at the negotiating table. They could see the entire board. They chose which defects to push and which to waive based on their long-term drilling strategy.

By the time the deal closed, our role had fundamentally shifted. We weren’t just the “title guys” anymore. We had become strategic advisors.

At Oliva Gibbs, we are maniacal about the details because we know what is at stake for our clients. In Appalachia, the difference between a successful acquisition and a decade of litigation is often found in a single clause within a lease. We make sure our clients are on the right side of that line.

Does this level of intensity slow things down? Not a chance. It’s what makes the deal possible.