Our model is oil and gas asset development and growth through low-risk oil and gas resource plays where the oil and gas is proven to be in place and we apply new technology to harvest proven reserves. We believe that crude oil will be the big winner among energy sources over the next decade and we are out to create as much net oil ownership for ourselves and our industry partners as possible, during this current window of opportunity.
In order to meet our strategy goals, a strict set of due diligence criteria has been developed and is utilized in every prospect we consider. A brief summary of our Prospect Criteria is as follows:
• Oil Prospects Only - The prospect must be developed and targeted primarily for oil productions.
• Multiple Potential Pay Zones - Each prospect must also have the potential to produce from at least two primary production target zone formations in the well.
• Location - Prospect must be located in and around areas of historic, prolific oil production within our "geological area of interest".
• Direct Participation - Prospect must be on an industry-standard basis with turn-key.
• High Net Revenue Interest - The prospect must have a Net Revenue Interest (NRI) of at least 75% or more.
Good Geologic Information - The prospect must have a very positive and strong geologic interpretation based upon "well control" and in most cases, where applicable, further confirmation through seismic and/or radiometric qualification.
• Professional Engineering - The completion process for each prospect must employ professional engineering.
• Technology Enhanced Completion and Production - As part of the engineering and completion process each prospect will be studied for maximizing it's potential production utilizing new technology in the process.
• Economics - Each prospect individually must have the potential of a multiple Return on Investment (ROI).
We believe the development of multiple prospects utilizing the criteria, and structuring our plan to participate, on a proportional basis, across a broad spectrum of these prospects, with differing locations, target formations, completion techniques and risk profiles will mitigate our risk associated with oil exploration, and provide the potential of a superior long term production.