Bob’s Blog – After the Ball

When I posted last, I thought our interaction through #NAPENetwork #WhereDealsHappen had come to an end. As Lee Corso might say: Not so fast my friends. SummerNAPE lives on til (at least) September 14th. And I’m glad. The platform has proven an effective method of starting conversations with new or renewed connections.

When I posted last I thought our interaction through #NAPENetwork #WhereDealsHappen had come to an end. As Lee Corso might say: Not so fast my friends. SummerNAPE lives on til (at least) September 14th. And I’m glad. The platform has proven an effective method of starting conversations with new or renewed connections.

Starting conversations. The real work, and results, accrue from the follow up and follow on activities. At TexhomaLand we offer consultative and operations services which assure the value of assets, help bring those assets to profitable operations faster, and keep the administrative drag on those operations to a minimum, so our clients can focus on pulling money from the ground. As the current O&G circumstances demand prudence, assured value, quick turnaround on investment, and reduced administrative load are keys to success.

Many of my conversations have been with entities seeking to acquire or invest in smaller existing conventional operations that have become peripheral to the current owner’s portfolio. Good money is there to be made if you buy low. Now is low. At some point in the next 12 months the demand curve is going to return to what ever the new normal will become. My guess is when refineries convert to summer mix next spring. That will coincide with a decline curve event, as slowed drilling creates a gap in new wells coming on line. The smart money will be coming on line with renewed wells in time to ride that price wave.

Prudence will be key to maintaining sanity, with investors, equity providers, and partners. I remember before the bank crash (OOOklahoma, where the banks fell faster than the rain) that Continental Illinios was pushing S&Ls to loan on a $100/bbl reserves valuation. Best in class is pulling BOE out of the ground in the mid-$30/bbl range today. Today we need to plan to operate closer to the 8/31 WTI closing price (October contract) in the mid-$43 range.

At TexhomaLand we can help you evaluate which assets to acquire, help you bring them to best production quicker, and operate administratively with less load. To keep your head (and wallet) about you while others are losing theirs. If you’d like to see how we can help you, reach out to me at bobrahm@texhomalp.com, connect with TexhomaLand on LinkedIn, and check out our website – TexhomaLand.com. I hope to hear from you.

Share:

Share on facebook
Share on twitter
Share on linkedin

Leave a Reply

Close Menu

TALK TO US LIVE ON THE NAPE VIRTUAL FLOOR

It’s digital, it’s new, and for the first time, delivered directly to you

TexhomaLand is excited to see you at the first virtual Summer NAPE! Starting Tuesday, August 11th, join us at our virtual booth, number 2615. #WhereDealsHappen

Send us a message FOR more info!