$FOFU Industry Opportunities
A large number of oil and gas wells in the United States are owned by small
producers and individuals.
The aging of the owner population, current economic challenges and recent
improvements in extracting and stimulation technologies, are culminating to
form a unique opportunity:
• Poorly producing wells and smaller properties are often run without access
to technical
expertise and are not maintained correctly. In many cases, production can
be increased simply by making a modest investment in maintenance and updated
or refurbished equipment.
• Small property owners looking to “cash out” are typically too small for
large operators.
• Many producers lack access t o funds for production optimization, such as
stimulation or well depth modification.
• Several locations are strong candidates for higher well densities and
increased production, which, when combined with the drastic drop in
drilling and pumping equipment costs, make established reserves
development desirable.
• New low cost technologies applicable to low/non-producing small plots:
recent improvement in technologies – once difficult to control, like
nitrogen stimulation, or too expensive to implement on a small scale, like
chemical and mechanical fracturing – are now available for implementation
and are economically feasible
