There is quite a bit to be said for planning and execution. Laying ground work for a program to succeed, with each piece of the puzzle being placed for later exploitation, is one of the better ways to profit when the time is right. Not only does planning allow for maximum opportunity for profit, but for timely execution as well. Investors that can find a company that has all of its pieces in place, and can choose when to pull the trigger, is an investor that is likely to profit.
Platinum Energy Resources Inc., an oil and gas exploration and development company, works to discover and exploit oil and natural gas primarily in Texas and along the Gulf coast. The company has also recently acquired an oil and gas engineering company to better leverage the company’s internal and external options.
For the most part, the company has been working to establish itself as a solid mid-level producer of oil and gas. It is currently making great strides reactivating and drilling in a historically productive 32,000 acre oil and gas lease. In tandem, the company is also finding solid successes with its expansion of resources along the Gulf coast. June 30, 2008 found the company producing 1,240 barrels of oil per day (equivalent) with proved reserves of 10.5 million barrels of oil, an increase of 500,000 barrels from the beginning of the year.
Generally, the increase in proved reserves came from better than expected results from the company’s Texas locations and the addition of 131,000 barrels from Gulf coast acquisitions and operations. Given today’s varying market conditions, it should be noted that these oil reserves have been accounted for in year-end 2007 oil prices to allow for price variations.
The company feels that it is certainly in a time of transition. Current operations are moving in a planned and calculated way, allowing for the initiation of the company’s next phase of development. With the addition of Maverick Engineering to the company’s infrastructure, it feels that reworks and reentries will add production and cash flow. In this regard, the company has plans for production through the end of the year, but especially beginning in the first quarter of 2009.
Several of the company’s Wilcox leases have been reentered and are producing respectable amounts of gas (600 mcfd before an abandoned 1950’s interval stimulation) while Scurry and Palo Pinto County Texas leases are showing initial water flood and possible horizontal Barnett shale drilling opportunities for the beginning of the year. Clearly, Platinum Energy Resources has done its groundwork and is in the process of lining up its priorities. From all appearances, the company is in a solid position and ready to pick off its projects for profit as it chooses.
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