There are many ways to exploit a market running at full tilt. A company can dive right in, investing and developing product along with all the other major players, or it can trail along behind and scoop up profits that may have been left behind. Either method is a perfectly sound way of capitalizing on a hot market. Finding the leaders in a hot market is not difficult; finding the opportunist company is. There are always increased risks when investing with an opportunist company, but it can result in excellent profits if the company plays its hand correctly.
Foothill Resources Inc., an oil and gas exploration and development company, works to exploit oil and gas reserves found in low- to moderate-risk areas of California, Texas and Oklahoma. The company’s primary strategy is to locate past oil and gas finds in North America to exploit at lower cost and risk.
Generally speaking, the company relies on past data and drilling patterns for its property acquisition programs. Its California property is located at an oil and gas site first discovered and worked in the 1930s. This site is primarily off-shore but with excellent on-shore potential for natural gas. Larger and smaller companies have worked in the region and currently still do. Smaller amounts of natural gas are indicated at shallower depths.
The company’s two other properties, in Texas and Oklahoma, remain in the seismic testing phase. The Texas property shows excellent gas potential from tests at deeper levels. The Oklahoma properties also indicate excellent gas potential from a 1996 testing program completed by a major oil and gas company. Unfortunately, there is a sand layer located at this site meaning deeper drilling is necessary.
The company is following a fairly safe exploration program in its search for oil and gas. Currently, it appears that gas is its primary focus. From a general perspective, however, relying on others to perform exploration tasks can be fairly limiting. Foothill Resources does appear to have a solid plan of attack but needs to push its own exploration programs a bit further. In this respect, relying on others only takes a company so far. With its current structure, and a little extra “juice” from management, Foothill Resources appears ready to break into the oil and gas market with a solid profit potential.
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