With gas prices rising and the national average floating around $4.00 per gallon, many companies are looking to embark in the alternative energy industry. Natural gas is included as an alternative energy field and even Jim Cramer, Host of CNBC’s show “Mad Money,” has recognized the increased exploration involving natural gas, calling 2008 “the year of natural gas.”
EMVELCO Corp. (NASDAQ: EMVL) is a newly formed gas exploration and development company whose principal strategy is to acquire rights to drill on key land positions in major oil and natural gas basins that consist of large, seismically defined prospects near existing substantial oil or gas production. The company focuses on maximizing potential growth while significantly reducing financial costs and risk.
One of their keys to success is finding ways to take advantage of early opportunities before possible competition has appeared. The company’s management team is highly qualified and experienced within the oil and gas industry, and they have already acquired or identified a portfolio of quality oil and gas assets that they believe hold great potential for increased production and positions for EMVELCO to capitalize on, which will help to build shareholder value.
EMVELCO acquired the rights to drill at least 86 wells in Crockett County, Texas. The wells are infield drilling wells with negligible dry hole risk, as 48 of the drilling locations are classified as proved undeveloped (PUD) by independent engineers. The wells range from 4,800 to 5,500 feet and are expected to produce approximately 23 Bcf of gross natural gas reserves with an SEC present value of $43 million.
The company’s focus on legacy oil and natural gas assets has proved to have good historical data that supports the acquisition process and subsequent development. Their ability to act decisively and structure innovative transactions provides the opportunity to grow assets quickly. Additionally, they believe in project diversity and are working to ensure the company’s rapid transition to a broad-based energy company that includes alternative energy sources.
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