Strategy
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Mitigating risk by diversifying opportunities: Stanotex evaluates opportunities along the oil and gas risk continuum. These opportunities include production and development prospects. Stanotex considers the risk of each prospect to maximize and blend risk reward ratio for itself and its partners.
- Maintain low overhead: Stanotex’s strategy is to keep a flat low cost but efficient management structure.
- Deploy capital to generate cash flows: Stanotex selects projects which have commitments of field operations in place.
- Risk reward ratios: Stanotex divides its drilling dollars as follows: 1) Low Risk Projects; 50%, 2) Mid Risk Projects; 30%, 3) High Risk Projects; less than 20%. The risk-reward ratio is at work herein whereby the higher the risk the greater the possible return.
- Independent Exploration and Production (E&P) company
- A private company with a focus on the middle Texas gulf coast and west Texas
- Operates own wells
- Drills shallow oil and gas wells (above 6500 feet)
- Acquires producing properties that have value which can be enhanced through the drill-bit
- No overides or turnkey promotes on our investors
- Utilizes 3-D seismic when available along with strong subsurface geology and engineering