Strategic alternatives
Luis Garcia believed that Inveravante had four main strategic alternatives in relation to its investment in Vetra:

1) Sell its participation (totally or partially)

2) Merge VESL with a listed company

3) Launch an IPO on VESL

4) Set up a private placement of its participation in VESL

Evaluate alternatives and make a recommendation to the Board of Directors, Mr. Garcia set up a summary of the key qualitative considerations to be taken into account in the decision, ranking the alternatives in terms of expected valuation and feasibility in the implementation, as detailed in Annex 5.

Economic Valuation
One of the key points to assess the attractiveness of each alternative was to understand the value of the company in all of them. In any negotiation process, a key point is to reach an agreement about the economic valuation of the negotiated assets. According to his experience, Mr. Garcia knew that any oil & gas E&P company should be evaluated based in three main elements:

1) Development of existing fields

2) Exploration of new fields

3) Management team

Consequently, in a discounted cash flow (DCF) approach to evaluate the company, it would be very useful to separate different values:

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Attachment:- Case-IE.rar