For license rounds or farm-in opportunities the aims are simple, limit regret value, but equally value opportunities well to avoid paying more than you must. For divestments you want the best price, whereas for farm-out getting the right partner(s) can be more critical to the future chance of success.
In all circumstances a good understanding of the role uncertainty plays is vital to recognise better outcomes than others predict, to justify paying a premium or to maximum value accretion. Identifying what everyone else sees is one thing but thinking what no one else has thought can deliver a value proposition that others miss, providing the edge needed to capture quality acreage in a cost-effective way, to attract new partners or to maximise proceeds from a sale.
Farming out captured acreage provides an early opportunity to monetise reward for the risk assumed on entry but also allows risks to be shared before entering the high-cost phase of projects. High-quality technical work is key to achieving the best deal, including the potential to gain a healthy promote.
Successful farm-out hinges on also finding the right partner, one that can supply provide appropriate levels of financial support but also one that can bring experience you lack, and result in mutual benefit to both parties.
As a minor partner good technical challenge is the only currency of influence you possess to impact decisions, so geoscience excellence is critical to reach JVP consensus and avoid being railroaded into undesirable outcomes.