In the present day environment for energy, many companies are struggling with high debt loads incurred several years ago, while assembling oil production and exploration acreage when oil crested $100/bbl (“WTI”). In addition to these oil companies, many individual owners of acreage, along with regional banks active in the energy sector, are on the cusp of bankruptcy or insolvency as a result of poor loans and/or bad credits.
It is in this environment that Molori is seizing the opportunity to assemble oil and gas production in nearby and politically safe jurisdictions. Molori is pursuing a business plan, whereby the Company either purchases producing oil and gas assets at highly attractive rates, or in some cases simply takes on existing assets by way of purchasing or assuming default notes from small regional lenders and institutions. The Company has already proven itself capable of securing such assets at deep, deep discounts to what those assets sold for only a few years ago.
Better yet, Molori has demonstrated that it can make these acquisitions with little or no dilution to existing shareholders, and through forward sales of the resulting production, provide itself with capital to continue to roll-up or assemble profitable oil-producing acreage.
Molori is thriving in an environment of low oil prices. The fact that Molori has no debt, has positioned the company extremely well to benefit from the continuing rebound in oil prices. Having no debt and cash on hand, is crucial to Molori's strategy to acquire assets and production during this period of low energy prices
On June 6, 2016, Molori Energy Inc closed on the purchase of a 25% working interest in the oil and gas production from certain leases owned by Texas-based Ponderosa Energy, LLC. In conjunction with the purchase (see Molori Energy Inc. press release dated June 2, 2016), Molori committed USD
$1,000,000 in working capital towards a program to complete workovers on the Texas-based leases in order to increase production.
Ponderosa, a domestic USA oil and gas production company, is the operator on the leases and is presently focused on aggregating and developing shallow conventional oil reserves in Texas.
Ponderosa purchased these leases from distressed operators with highly-leveraged balance sheets and an inability to fund operations.
Molori and Ponderosa have chosen to collectively pursue assets which specifically exhibit the following properties: shallow reservoir, low geologic risk, moderate decline rates, and existing infrastructure.
The focus of Molori and Ponderosa’s activities has been in the “Hugoton-Panhandle” field in Northern Texas.
The Hugoton-Panhandle field was the largest gas field in North America until the development of unconventional shale. The Anadarko Basin, which houses the Hugoton-Panhandle field, has produced over 125 trillion cubic feet of gas and 5.4 billion barrels of oil. Since the discovery of the Hugoton-Panhandle field in 1922, thousands of wells have been drilled to date. Due to the vast historical drilling and production data, there is a low geological risk associated with oil and gas development. The maturity of the field is crucial to Molori’s strategy of building reserves and resources, as decline rates are typically under 5% (year over year). Lastly, the liquids rich natural gas in this area, commands a premium over spot gas pricing. For these reasons, Molori is focused upon buying additional assets in this area.
?In aggregate, Molori has a 25% interest in the approximately 250 wells purchased by Ponderosa. Molori Energy Inc is continuing to back the Ponderosa as it fulfills its operational obligations in redeveloping non-operating wells and bringing them back into production.
Our Strategy Molori is pursuing a course that’s focused on profitable, predictable and steady performance. Management’s primary goal is to enhance shareholder value through the growth of underlying proven reserves with an emphasis on positive cash flow.
- Access to Capital Markets
Strong Balance Sheet
- Invest in Technology
Tight Cost Controls
- Acquire More Acreage on Favorable Terms
?Molori’s strategy is to build a production and exploration company of scale with a focus on conventional onshore oil and gas assets.
The Company intends to develop its acreage in the Texas Panhandle region which covers an area of 5,801 net acres, and has been independently assessed to have 15 mmboe of 2P reserves.
The Company is also aggressively pursuing opportunities to expand its presence in the U.S.A and other reliable jurisdictions in order to create further value for shareholders.
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We take our commitment to our business seriously. Our approach is to create value for our shareholders by focusing on oil production in safe and proven hydrocarbon-prone jurisdictions. Our stated objective is to consistently grow our resources, reserves and cash flows, with minimal shareholder dilution.
As we focus on resource development, we are aware that many of our activities take place in, or near sensitive environments. That’s why we are committed to increasing efficiency and minimizing environmental impact as we contain our costs. We actively encourage and ensure that our operating partners follow industry best practices, and we support them in their efforts to consult with and engage local stakeholders.
Maintain a strong balance sheet to ensure financial flexibility in any oil price environment
Purchase assets when oil prices drop, and employ an attractive derivatives program to protect cash flow as energy prices firm
Deliver economic production and reserve growth from our oil and gas assets
Remain open to partnering with, or even be acquired by other growth-oriented, like-minded or domestically-focused production companies
|Mar 3, 2017 ||Molori Energy Inc. Acquires Additional Production ||ACCESSWIRE |
|Mar 1, 2017 ||Molori Energy Inc. Provides Operational Update and Year-End Results ||ACCESSWIRE |
MOLOF Security Details
|Market Value1 ||$3,876,665 ||a/o Mar 06, 2017 |
|Outstanding Shares ||18,548,638 ||a/o Jan 17, 2017 |
Molori Energy Inc.
#2630 - 1075 W. Georgia Street
Vancouver, British Columbia,
V6E 3C9, Canada