Low Cost Structure:
The Company's focus on a low cost structure with
minimal cash investment for acquisitions allows the
Company to pursue the acquisition, development and
production of properties that may not be economically
attractive to larger independent or major oil and
gas companies.
Technical Expertise and Significant
Experience:
Each management member has an average of 25 years
direct experience in oil and natural gas properties
acquisition, development and management. These technical
personnel have specific expertise in geology, engineering,
drilling, servicing & pipeline operation and overall
property development. We will utilize the most modern
technologies economically available to enhance production
and ultimate hydrocarbon recovery on all of our properties,
thereby increasing the distributable income for our
investors.
The Company seeks to minimize
its overhead...
and capital expenditures by subcontracting the drilling,
re-drilling and work-over of wells to independent
drilling contractors and by outsourcing other services.
The Company typically compensates its drilling subcontractors
on a turnkey (fixed price), footage or day-rate basis
depending on the Company's assessment of risk and
cost considerations on each individual project. The
Company continues to seek strategic alliances with
service and equipment companies, technological companies,
and industry partners to maximize every dollar invested
and diversify our risk.
Operating Control
The Company is afforded greater control of the selection
of completion and production equipment, the timing
and amount of capital expenditures and the operating
parameters and costs of the project.
Marketing and Delivery Commitments
Stanotex, as with all oil and natural gas producing
companies, will sell its production under price sensitive
or market price contracts. Expected revenues, profitability
and future growth depend substantially on prevailing
prices for crude oil and natural gas. The Company
may hedge a portion of its production to reduce price
volatility and risk. However, the price received by
the Company for non-hedged oil and natural gas production
can be subject to substantial fluctuation. Changes
in the prices of crude oil and natural gas will affect
the financial valuation of the acquired proved reserves,
as well as revenue, profitability and cash flow. Although
Stanotex does not expect to experience any significant
involuntary curtailment of the crude oil and natural
gas production from the targeted acquisitions, market,
economic and regulatory factors may in the future
materially affect the Company's ability to sell its
crude oil and natural gas production.
End Users
The Company intends to sell the produced crude oil
and natural gas to end users through various marketing
companies. The Company does not intend to be dependent
upon, or confined to, any one purchaser or small group
of purchasers. Because of the nature of crude oil
and natural gas markets as well as the fact that crude
oil and natural gas are commodities, there are numerous
purchasers in the areas in which the Company expects
to sell the production from acquired properties. Management
does not believe the loss of a single purchaser, or
a few purchasers, would materially affect the Company's
ability to sell its production.
Competition
Stanotex competes with both major and independent
oil and natural gas producing companies for property
acquisitions. The Company also competes for the equipment
and labor required to operate and to develop these
properties. Most of the Company's competitors have
substantially greater financial and other resources
and therefore are better able to sustain the wide
fluctuations in the economics of the Oil and Natural
Gas Industry. Since Stanotex operates within a highly
regulated industry; the Company's competition may
be better able to absorb the burden of any changes
in federal, state and local laws and regulations.
The Company's ability to acquire and develop additional
properties in the future will depend upon Management's
ability to acquire reasonably priced acquisition capital,
conduct operations, evaluate and select suitable properties,
and to consummate transactions in this highly competitive
environment.
Employees
Stanotex maintains only a small internal staff of
3 people, including the principals. For most of the
acquired properties, Stanotex utilizes the services
of third-party independent consultants and contractors
to perform various professional services, particularly
in the areas of construction, design, well supervision,
permitting, and environmental assessment. Independent
contractors will also usually perform field and on-site
production operation services as well including gauging,
maintenance, dispatching, and inspection and well
testing.
Feel free to if you are interested in learning more
about Stanotex, oil and gas investments and to discover
if investing in oil and gas is right for you.
