Our strategy is to increase shareholder value by profitably growing our reserves, production, cash flow and earnings using a balanced program of (1) developing existing properties, (2) exploring and exploiting undeveloped or abandoned properties, (3) completing strategic acquisitions and (4) maintaining financial flexibility. The following are key elements of our strategy:
• Continuing to Develop Our Existing Texas and Oklahoma Properties
We will further develop the significant remaining potential of our Texas and Oklahoma properties including reworking and rehabilitating existing wells on the properties while identifying several additional low-risk drilling opportunities.
• Acquire Inactive Properties in Texas and Oklahoma
Management’s contacts and expertise in the oil and gas business in Texas and Oklahoma provides us with opportunities to acquire properties not producing or operating under marginal circumstances that can be developed successfully for profitable operation. These opportunities are primarily the result of neglect or abandonment of oil and gas producing properties that are now owned by individuals who lack the capital and other resources necessary to bring the properties back into production and further develop the recoverable hydrocarbons that remain.
• Acquire Strategic Assets
We continually review opportunities to acquire producing properties, undeveloped acreage and drilling prospects. We focus particularly on opportunities where we believe our reservoir management and operational expertise in rehabilitating mature oil and gas properties will enhance value and performance. We remain focused on these unconventional resource opportunities, but also look at conventional opportunities based on individual project economics.
• Operate Our Properties as a Low Cost Producer
We strive to minimize our operating costs by concentrating our assets within geographic areas where we can consolidate operating control and thus create operating efficiencies. We are the operator of all of our producing properties and will to continue to operate substantially all of our producing properties in the future. Operating control allows us to better manage timing and risk as well as the cost of exploration and development, drilling and ongoing operations.
• Utilize Joint Ventures and Strategic Relationships with Industry Partners
We have and will continue to sell working interests and seek joint ventures and other strategic partnership arrangements to develop our properties and fund purchases of new properties. The advantages to these partnerships are the ability to acquire and operate larger projects and properties, and commence drilling projects sooner while reducing the overall cost and risk exposure to the Company for any one project.