Is there anything paused? After my explanation,I'm not sure what you are asking me. So, here goes. There have been 63 rigs laid down in the US in the last two weeks. Do I expect this trend to continue? Yes, I do. The company's who are canceling drilling and the development of projects are the ones setting with marginal positions, high risk projects or high leverage. Please try to understand this. Good projects always get developed!! The market will adjust and everything marginal will go away until high prices return. A good way to tell the kind of prospects a company has is to watch what they are doing with them in regards to development. When you hear a company say that they are concentrating on reworking old wells instead of drilling new wells. It is a big red flag to me, that their prospects are not as good as they originally touted them to be.
As I outlined in a previous post,Superior concentrates on the best areas, with the best operators in a given, chosen area. Most company's go in an take a 10,000, 15,000 or 200,000 acre package. To me this is wrong!! When a company does that, it spends money on a lot of crappy, marginal acreage. I only want to be where the highest occurrence of hydrocarbons are located,where seismic has shown plenty of natural fracturing, higher than average formation pressure and verifiable results from neighboring sections.
I only want to drill an oil well, when I can think of no good reason not to drill the well!! I'm an old fashioned oil guy that believes in using the modern technology and pooling laws to your favor! Stack the deck in your favor as much as you can as this is risky business! You will save a ton of money doing it my way and the results will be much better! I know Dan Lloyd agrees with my way of thinking.
Dan currently has a 16,500,000.00 offering open for investment and things seem to be happening.
I hope I addressed your question.
