OUR FOCUS AREA: The Onshore Gulf Coast Region
Over past 2 years, we have evaluated opportunities from Argentina to Alberta. By far, the most attractive opportunities have been identified in the onshore Gulf Coast Region.
Here are some of the features about the focus area we love:
- Robust prospect economics and short cycle times at $50 oil and $3 gas.
- Low hanging fruit. Low commodity prices over the past 4 years have resulted in considerably reduced industry activity with most companies choosing to pursue unconventional reservoirs.
- Stacked pay in many productive hydrocarbon traps- numerous reservoirs sourced from multiple active petroleum systems in Gulf basin.
- Current strengthening gas/NGL pricing are driving robust economics- Gas rich petroleum system.
- Prolific petroleum system- Gulf Coast has significant ‘Yet-To-Find’ Resources as determined by USGS (2012).
- New plays contain thicker reservoirs and larger reserves than in regional sandstones.
- Vast infrastructure in place with nearby refineries and extensive network of pipelines.
- Contrarian play focus and lower competition for acreage– US E&P’s are focused on unconventional resources in several basins in Texas and other states.
- Many have exited mature conventional areas, such as the Gulf Coast, in favor of unconventional resources .
- Deals are ready to drill with very attractive economics at $50 oil/$3 gas.