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The
Corporation's entry into the oil and gas acquisition, exploitation,
development and production business is based on the benefits
of the Casing Drilling technology and the business opportunities
presented by utilizing this technology. Using its four Casing
Drilling rigs, the Corporation plans to employ an aggressive,
opportunistic approach to acquiring, exploiting, developing,
and producing oil and gas assets with specific emphasis on
the continental United States.
Management believes
the continental United States represents a region with a significant
number of mature producing basins that lend themselves to
Casing Drilling. As a significant part of its business strategy,
the Corporation will undertake to acquire, farm-in or joint
venture on reservoirs or fields with historically difficult
or uneconomic drilling conditions. Management anticipates
that the Corporation will be in a position to benefit from
market trends in the United States where presently identified
mature fields with depleted pressure intervals and pressure
differentials within the drilling intervals are suited to
Casing Drilling. Specifically, management believes that following
benefits and opportunities are currently available to the
Corporation as it enters into this market: |
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Reserve Optimization
by Enhanced Recovery. Casing Drilling has established itself
as a viable means to cost effectively capture under exploited
hydrocarbons in environments where conventional drilling practices
are not reliable.
Demand for Service
and Property Ownership. The ownership profile of target assets
and opportunities is dominated by small to mid-size companies
amenable to turnkey engagements and equity/risk sharing and
turnkey drilling contracts.
Identified Targets
for Casing Drilling and Benefits. The major producing and
depleting fields in South Texas, the Texas/Louisiana salt
domes and western Colorado lend themselves to significant
Casing Drilling opportunities where the benefits of the Casing
Drilling process may be utilized to capture assets and ultimately
oil and gas production and cash flow.
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