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Our Strategy
Our goal is to increase stockholder value by building reserves, production and cash flows at an attractive return on invested capital. We seek to achieve our goals through the following strategies:
- Aggressively Develop our Williston Basin Leasehold Position.
We intend to aggressively drill and develop our acreage position to maximize the value of our resource potential. The gross drilling locations that we have specifically identified in the Bakken formation in our three project areas will be our primary targets in the near term.
- Enhance Returns by Focusing on Operational and Cost Efficiencies.
Our management team is focused on continuous improvement of our operating measures and has significant experience in successfully converting early-stage resource opportunities into cost-efficient development projects. We believe the magnitude and concentration of our acreage within our project areas provides us with the opportunity to capture economies of scale, including the ability to drill multiple wells from a single drilling pad, utilizing centralized production and fluid handling facilities and reducing the time and cost of rig mobilization.
- Adopt and Employ Leading Drilling and Completion Techniques.
Our team is focused on enhancing our drilling and completion techniques to maximize recovery. We believe these techniques have significantly evolved over the last several years, resulting in increased initial production rates and recoverable hydrocarbons per well through the implementation of techniques such as using longer laterals and more tightly spaced fracturing stimulation stages. We continuously evaluate our internal drilling results and monitor the results of other operators to improve our operating practices, and we expect our drilling and completion techniques will continue to evolve. This continued evolution may significantly enhance our initial production rates, ultimate recovery factors and rate of return on invested capital.
- Pursue Strategic Acquisitions with Significant Resource Potential.
In the near term, we intend to identify and acquire additional acreage and producing assets in the Williston Basin to supplement our existing operations. Going forward, we expect to selectively target additional domestic basins that would allow us to employ our resource conversion strategy on large undeveloped acreage positions similar to what we have accumulated in the Williston Basin. While we have no current intention to pursue international opportunities, our management team has significant international acquisition and operating expertise. If we identify an international opportunity with appropriate scale, risk and resource conversion potential, our board of directors may approve such an investment should they determine it is in the long-term best interest of our stockholders to do so.
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