Despite minor spikes in recent weeks,
crude oil prices continue to hover near their lowest levels since 2009.
According to the Houston Chronicle, the low prices have left thousands of wells
throughout the United States incomplete, as drilling companies delay
construction until crude oil prices return to more financially viable levels.
In large part, these delays are a result
of a dependence on unconventional wells, which require modern techniques,
including fracking, to achieve oil flow. For these wells, the costs of
installing extraction equipment can account for as much as two-thirds of the
total drilling expenses, adding significant capital investment to the back-end
of drilling procedures that are difficult to justify with oil prices just north
of $52 per barrel.
Falcon Crest Energy, Inc. (OTC PINK:
FCEN), through its Rocky Ford Field leasehold in Crook County, Wyoming, is in a
strong position to prosper despite lower oil costs.
“What makes this play [in Rocky Ford
Field] particularly attractive is that the drilling depths on this play are
shallow (less than 300M) making it very low cost to both explore and develop,”
stated Patrick Johnson, Chief Executive Officer of Falcon Crest.
Conventional oil wells, such as those
planned for the company’s leasehold, are increasingly attractive for those in
the oil and gas industry because drilling expenses account for nearly all of
the costs associated with well development. As the drilling of unconventional
wells begins to slow down or halt as a result of the drop in oil prices,
experts expect rising demand to drive a rebound for the oil market in the
future.
“We believe we can do very well even at
$50 oil, and believe the markets will soon be turning to these kinds of
conventional non-shale, non-fracking opportunities,” continued Johnson.
A 100 percent working interest in its
Rocky Ford Field leasehold gives Falcon Crest maximum flexibility in terms of
the exploration and development of the property. As the company continues
towards completion of its development strategy, it is expected Falcon Crest
will carve out a sustainable niche in the evolving oil and gas industry. With
industry experts forecasting a second oil boom for the state of Wyoming in the
coming years, the future appears to be bright for shareholders of this
development stage oil and gas exploration and production company. Johnson
echoed this excitement in one of the company’s recent press releases.
“Falcon Crest is strongly positioned in
the right place and at the right time. We’re excited to have an established
presence in such a high-interest region offering such incredible opportunity.”
For more information on the company,
visit www.FalconCrestEnergy.com.
About QualityStocks
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks Daily Videos http://videocharts.qualitystocks.net
The Quality Stocks “Ones to Watch” http://gotstocks.qualitystocks.net
Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net
No comments:
Post a Comment