Management will pursue the following growth strategies:
Land Assembly:
Management believes that the wholesale way to participate in the oil and gas industry is to purchase land on the basis of sound geological fundamentals, of which the primary criteria is offsetting existing production.
Farmin / Farmout:
A Farmin is when the company participates in someone else’s project, and a Farmout is when someone else participates in the company’s project. Both strategies will be utilized depending on the timing, risk factor, initial financial commitment, and potential size of a given project.
Acquisition:
The company will seek opportunities to grow by acquisition. Both land acquisitions as well as production acquisitions with upside drilling potential will be sought, however, given the current high commodity prices, it requires patience to find an acquisition that has existing production, upside potential, and is realistically priced.
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