Falcon Crest Energy,
through its working interest in the Rocky Ford Field region of Wyoming, is
exploring and developing a plan to maximize profits as the worldwide oil market
experiences slumping costs. Expensive production methods, including horizontal
drilling techniques and fracking, have put major oil companies in a difficult
position as oil prices approach $50 per barrel, but Falcon Crest is optimistic
about the future development of its leasehold in Crook County, Wyoming.
“What makes this play
particularly attractive is that the drilling depths on this play are shallow,”
stated Patrick Johnson, CEO of Falcon Crest. The company has predicted that,
even at $50 oil prices, the area’s shallow reserves make profitability a
distinct probability.
According to a report from
Oil and Gas Monitor, the costs associated with producing oil from shale plays
or fracking are much higher than those required to develop a conventional well
for a variety of reasons. The simple explanation, however, is that deeper wells
are significantly more expensive to drill. Falcon Crest’s leasehold has plays
at depths of less than 300 meters, making development and oil production a much
less costly endeavor.
The price of oil has been
on a steady decline in recent months, as supplies have exceeded demand in many
markets around the globe. As prices reach record lows, conventional non-shale,
non-fracking plays are expected to make a major comeback as companies scramble
to meet requisite production cost goals. Through its working interest in Crook
County, Wyoming, Falcon Crest has positioned itself well to capitalize on the
possible evolution of global oil production methods.
Unlike other areas, such
as the Bakken formation, which has been home to a production boom for over a
decade, the company’s leasehold provides the potential for profitability
despite slumping costs. “[We] believe the markets will soon be turning to these
kinds of conventional non-shale, non-fracking opportunities,” Johnson
continued.
If industry analysts are
correct and the global oil production market does take a turn back towards
conventional drilling methods in order to cut costs, Falcon Crest will be in a
great position to capitalize through the development of the company’s recently
announced 100 percent working interest in its Wyoming leasehold.
For more information on
the company, visit www.FalconCrestEnergy.com.
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