In many respects, being a small fish in a big pond can have benefits when market conditions are difficult. This often used analogy suggests a certain amount of flexibility and latitude as larger concerns work to manage more problematic issues associated with smaller margins on a larger scale. This doesn’t diminish the issues associated with maintaining a smaller business in these types of conditions, but it does let a company assess and position a little more easily when margins are less than ideal. It is a difficult balance to find (free cash/opportunity/production) but if found, there may be a nice opportunity for profit.
Pinnacle Energy Corp., a Canadian oil and gas exploration and development company, works to discover and extract oil and gas primarily in Oklahoma. The company has been having solid successes with current wells and is pursuing expansion of acreage through past agreements.
At present, the company has continuing plans for 43 wells in the Glencoe field prospect of Oklahoma. The upper and lower Cleveland sands regions of the prospect have been historically active with an estimated, likely, probable and proven potential for the company of 214,000 barrels of oil and 839,000 million cubic feet of natural gas. From all appearances, current drilling activities at the formation will continue to supply the company with a steady source of revenue for some time to come.
The successes being found at the upper and lower Glencoe Cleveland sands locations also hold hope for further expansion around the existing lease hold sites. The company feels that the current structural formations at the site extend past existing lease hold boundaries into adjacent leasable sites. With this in mind, the company has recently exercised its right to participate in up to 25% of a 2,000 acre lease adjacent to the Glencoe field. Now named Peppercreek 1, drilling is expected to commence in the first part of 2009.
Although the company indicates that it will move in and out of leases and projects as profit potential dictates, it does seem to have a steady flow of oil and gas lined up for the near term future. If it can manage its assets through current conditions, the company is ready to become a solid player in the marketplace.
About QualityStocks:
QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.
Sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
The Quality Stocks Daily Stock Report http://video.qualitystocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net
Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment