Strategy
The elements of our growth strategy consist of the following:
In House Capabilities. Recognizing a shortage of drilling equipment, through Reserve’s affiliation with its sister drilling and service company, Reserve is not nearly as subject to the fluctuations of market costs or availability of critically needed services. In addition, Reserve can more closely control the quality of work and services.
Controlled Drilling. Reserve’s disciplined drilling approach enables us to maintain a high quality prospect portfolio thereby reducing associated risks and maximizing the likelihood for success.
Unconventional Drilling. One untapped market potential is drilling deeper (or “slim-hole drilling”) shallower depleted wells to deeper gas formations. This yields a unique, lower cost drilling alternative with the same end results as a new well, but requires a higher degree of pre-planning and down-hole experience.
Flexibility. Reserve has a continual influx of new leases. Our Drilling Programs maintain the flexibility to identify the drilling prospect just prior to commencement of drilling activities. Once a new well is nearly completed, we evaluate our most current prospect portfolio and select the best available prospect.
Capital Re-Investment. Reserve, its Principal Officers and/or its affiliated companies re-invest a majority its oil and gas income back into ‘drill-bit’ growth (i.e., new wells). In fact, in 2006, we internally invested 39% of the total required capital.
Personnel. Recognizing that overall success will also rely heavily upon the abilities of Reserve’s employees, we have assembled a competent and motivated workforce capable of obtaining our high performance standards.
