For those in the oil and gas sector, we’ve known the prolonged oil and gas price downturn would eventually produce a whipsaw-like rebound. After all since 2014, very few new oil field developments have gone ahead, deep water exploration has virtually stopped, and the rate of unconventional resource expansion has been drastically curtailed. On top of that, the IEA has continually underestimated global demand. Something had to give. Now as Brent approaches $80, many analysts believe we are entering an energy cycle that is leading to $100 oil.
In 2014, as we watched the painful destruction of our industry, we also knew the time would come to reinvest in the oil and gas sector. Over the last few years, our original group began searching for oil and gas opportunities in S America and also SE Asia, places where we have considerable collective corporate experiences. Unfortunately, everything we saw required considerably higher oil prices or was considerably overvalued. We drew a blank.
A few years ago, I attended the NAPE (North American Prospect Expo) in Houston, Texas and was surprise to see numerous low risk (Pg >75%) Gulf Coast exploitation drilling opportunities that had robust economics at $50 oil and $3 gas. As we began to sift through Gulf Coast prospects, and we looked at close to 50 prospects in the past year, we realized the Gulf Coast offers considerable ‘low hanging fruit’, such recompletions and development wells in productive fields as well as other ‘close in’ opportunities. We realized that a portfolio of low geological risk prospect had the potential to organically grow our business, after a modest initial capital raise.
Now is our time. We have assembled our initial portfolio of several very attractive opportunities. These are great ‘starter kit’ projects, ones that provide both very low geological risk, very robust economics with payback periods of <6 months. And we have commenced a financing to fund activities that is expect to close in July.
Welcome to Fortitude Gulf Resources! We hope that you will find a compelling investment story within the pages of our website. And if you have any questions, we would love to hear from you.