SM Energy, based in Denver, focused on oil and natural gas, initiated a SAP ERP implementation project in April 2013 to transition from the P2 Excalibur system. Akili provided project management leadership and recommendations for an agile approach to data conversion to ensure successful launch by January 2015. The project resulted in a reduction of the financial closing timeline and achieved a high level of data accuracy, completing 98% of the necessary data conversion.

1. A collaboration between:

3. • Headquarters: Denver, CO
• Products & Services: Oil & Natural Gas exploration
and production
• Major Areas of Eagle Ford, Williston Basin
Operations: & Midland Basin
• Enterprise Value*: ~$5.0 billion
• Employees: ~900
• Solution: SAP ERP w/ IS Oil (FICO, FA, PRA,
JVA, & PS) & SAP Data Services
*As of August 12, 2015
Overview
Best Practices for Oil & Gas 2015| 3

5. • Transition P2 Excalibur System to SAP ERP with IS Oil plus
the implementation of Quorum Land, WellMaster, & the
integration of 30+ applications.
• Started the SAP Implementation project in April 2013.
Project Start
Best Practices for Oil & Gas 2015| 5
Realization Support
Blueprint Realization Support
Initial Plan
Extend
Blueprint
Prep Final
Prep
Final
Prep
BlueprintPrep

6. • After completing an 8 month design and blueprint, SM
Energy received an updated plan from their integrator to
complete the project.
Project Adjustment
Best Practices for Oil & Gas 2015| 6
Blueprint Realization Support
SI’s Updated
Plan
Final
Prep
Prep

7. • SM Energy asked Akili for a project review and
recommendation to ensure delivery success by January
2015.
• The outcome of the recommendations was for Akili to
provide Project Management Leadership, to complete the
Data Conversion, and to provide some individual
consultants to augment the team.
Project Review
Best Practices for Oil & Gas 2015| 7

9. • Akili’s recommendation:
– Adjust the plan for a more agile implementation approach which
leverages the release of high value functionality first.
– Connect the configuration, the development, the data conversion,
and the test scenarios to ensure each Release drives business
value.
– Continually evaluate the project scope based upon actual results
using customer converted data in the testing.
Project Review & Recommendation
Best Practices for Oil & Gas 2015| 9

10. Project Methodology
Best Practices for Oil & Gas 2015| 10
Blueprint Realization Support
SI’s Updated
Plan
Detailed Design Build Test
Releases
Detailed
Design
Build
Test
Lessons
Learned
Blueprint SupportAkili’s Plan
Requirements
Requirements
Requirements
Prep
Prep
Final
Prep
Final
Prep
Release
1
Release
2
Release
3
Release
4

11. • The traditional approach
to work streams during
realization.
• Iterative approach to an
integrated work plan for
realization
Project Methodology
Best Practices for Oil & Gas 2015| 11
Realization
Functional Activity
Test
Release 1
Technical Activity
Data Activity
Functional
Activity
Test
Technical
Activity
Data
Activity
Release N
Functional
Activity
Test
Technical
Activity
Data
Activity

12. Issue: Upstream Oil & Gas is different from many industries
in that key processes such as Revenue and JIB are run in
monthly batch cycles. As a result it is very difficult to fix
issues with data on a transaction by transaction level in the
normal business cycle. Accurate master data is critical!
Resolution: Testing is only valid on business processes in
which the business test is being completed on converted
data from the source systems.
Data Conversion in Oil & Gas
Best Practices for Oil & Gas 2015 | 12

13. Iterative Approach to Data Conversion
Best Practices for Oil & Gas 2015 | 13
Release 1 –
Baseline
•Baseline the
process
•Process a small
set of data
•Core
Conversions
only
•Validating the
environment &
core process
•No data
validation
Release 2 –
Assess the Data
•Assess the Data
Quality
•Complete all
high priority
conversions
•Assess Data
Quality
•Confirm
conversion
mapping and
rules
Release 3 –
Test 1
•Full data load –
Ready for
System Testing
•All Conversions
Complete
•Validate load
plan
•Identify data
issues
Release 4 –
Test n
•Final validation
•No new
conversions
•Final data
cleanup
•Repeat cycle
until target data
quality achieved
Cutover
•Cutover controls
in place
•All data
validations in
place

14. Over 70 pre built SAP Load Objects are delivered in
our pre-configured solution
Pre-Configured Migration Content
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AKILI DATA
MIGRATION
SAP Data Services
• Well Data
• Delivery Networks
• Division Order
• Business Associates
• Joint Operating Agreements
• WBS Elements

16. Data Conversion
• Initial baseline data load started within 60 days
• Identified additional business scenarios not identified in the blueprint
that needed to be addressed
• Met Go Live requirement of January 2015
• Converted 98% of all data
– Remaining 2% was the combination of unnecessary records and incomplete
records that need further research
Business
• By the first close on SAP, SM Energy was able to decrease closing
timeline from 13 days to 7 days with a higher level of accuracy.
Outcomes
Best Practices for Oil & Gas 2015 | 16

17. • Start data conversion and cleansing as early as possible in
the project
• Controls must be included in each data conversion test.
• It will take several (3-5) iterations of data conversion for
functional tests to ensure a high level of data accuracy at
Go-Live.
• All functional testing must be done on converted data
from the source systems.
Lessons Learned
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18. Q&A

19. Best Practices for Oil & Gas 2015| 19
Dean Lutey, SM Energy
dlutey@sm-energy.com
www.linkedin.com/pub/dean-lutey/35/94/4a1
Alan Boyer, VP of Delivery
aboyer@akili.com
www.linkedin.com/pub/alan-boyer/0/93/a9