As oil prices continue to do what oil prices are doing these days, the focus is often on the big players, where billions of dollars worth of references are tossed around like candy. What is being missed is the smaller player – the one that is quietly going about its business of producing a stable and reliable amount of oil in the regions and wells that nobody else wants. As those coin machines in the super market can well attest, pennies do add up to a nice chunk of change if one knows how to package and sell their use.
Boundary Bay Resources Inc., a positive cash flow oil and gas exploration company, works to acquire smaller producing oil and gas properties in order to fund acquisition of smaller, re-work, or potentially larger properties/leases. From a general perspective, smaller leases/wells can range from only several barrels of oil per day on up.
Using positive cash flow is the basis for the company’s business plan. It feels that having oil properties, which are currently producing at predictable rates, in its stable of properties is the best method for the company to grow in a manageable and revenue-positive way. In other words, the company does not wish to acquire debt unless it finds that the lack of debt is hampering opportunities for growth.
While some may indicate that this model is fairly utopian in nature, it is nonetheless a plan that offers a conservative approach to being involved in the often rough and tumble world of oil and gas exploration. In many instances, companies feel that they need debt financing in order to reach a level consistent with profitability and growth. Boundary Bay Resources does not seem to feel this way, and instead follows a strategy of growth through sustainable internal revenue growth. This is not to suggest that debt is not included in the company’s overall strategy, but that it is just a smaller component.
Recent news has found the company following the path of becoming involved with additional properties. A $50,000.00 venture with Nitro Petroleum Inc. gives the company a 50% interest in a Seminole County, Oklahoma well and an inventory of over 200 barrels of oil for immediate sale. It is believed that involvement in this re-work project will produce revenue for future projects during the remaining lifetime of the well.
The often heard phrase “small is beautiful” may work well for some companies, but it is not the entire plan for Boundary Bay Resources Inc. Growth in a responsible way is the future for this company. It is just following a long term strategy that will provide a stable path toward that growth. As oil prices continue to hover near record prices, the company’s overall goal of taking advantage of re-work properties domestically is likely to result in a solid payday with positive consistent revenues being generated well into the future.
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