Having infrastructure in place and a solid plan running when the stars align is a bonus any company would enjoy. If an investor can be at that same place and time, profit is in the offing.
Gulf Coast Oil and Gas Inc., an exploration and development company, seeks to re-enter historically producing gas and oil properties within the United States in search of untapped energy reserves. It currently is in the process of developing one existing lease in Texas and exploring another in Louisiana.
The company’s efforts at its Texas lease are currently producing gas and oil at three re-entry locations. It is working to begin efforts at two others. The oil at this lease has been producing at one time or another since the 1940’s, and shows excellent potential for producing modest output into the future. Geological reports indicate favorable porosity and sand formations in historically positive lateral fracture form. The company’s Louisiana lease also shows excellent potential and is expected to find re-entry in the near future.
The company is aware of the costs associated with re-entry, and concentrates on shallower depths to minimize exploration and development costs. Its current efforts are all less than 3,000 feet, with the most current development prospects nearer 2,200 feet. From a positive perspective, information with regard to profit potential of proposed exploration and development sites were based on $50 per barrel prices; before the current run-up in per barrel prices. If the company’s pricing structure holds true, it would appear that it is positioned for a nice and profitable run.
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