PNXE
Our Business Strategy
Our goal is to increase stockholder value by finding and developing oil and natural gas reserves at costs that provide an attractive rate of return on our investments. The principal elements of our business strategy are:
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Source and develop new properties. We intend to identify drilling locations on future properties by utilizing digital spectral satellite maps among other accepted technologies. We have located a company in West Virginia providing such services.
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Maximize Operational Control. We seek to operate properties and maintain a substantial working interest. We believe the ability to control drilling inventory will provide us with the opportunity to more efficiently allocate capital, manage resources, control operating and development costs, and utilize our experience and knowledge of oilfield technologies.
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Pursue Selective Acquisitions and Joint Ventures. Due to our local presence in Southern Kentucky, we believe we are well-positioned to pursue selected acquisitions from the fragmented and capital-constrained owners of mineral rights throughout Southern Kentucky.
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Reduce Unit Costs Through Economies of Scale and Efficient Operations. As we begin oil production and develop future properties, we expect that our unit cost structure will benefit from economies of scale. In particular, we anticipate reducing unit costs by greater utilization of our existing infrastructure over a larger number of wells.
