The “next quarter” crowd of investors is quickly finding out the true implications of their shortsightedness. Instead of enjoying long term investment payoff in a solid and consistent manner, they are now experiencing the hangover of wanting it all now. Slow and careful planning with consistent execution has always been the most predictable way to build a business and profit by it. For those investors who have followed this philosophy, today’s events will likely be less painful and more profitable… tomorrow.
Jayhawk Energy Inc., an oil and gas exploration and development company, works to exploit oil and gas deposits primarily in Kansas and North Dakota. The company follows a low-risk development and drilling strategy through its large tracts of majority-owned (up to 95% in some instances) exploration and drilling properties.
The associations that come with being named Jayhawker are no coincidence when considering Jayhawk Energy. A no-nonsense approach to doing business with an eye on the practical, rather than the high flying, exemplifies all that is a Jayhawker. The company follows practical, well thought out principles and is benefiting by them. With a debt free balance sheet, the company has assembled a large 55,000 acre, historically productive, working parcel of land for its gas and oil activities.
With a long-term program in place, the company has begun development by drilling 20 phase one wells. The total program at the site calls for 100 wells and a wholly-owned infrastructure system of pipeline/dewatering and associated services to supply line system. August 2008 finds the company completing and tying in 6 of its first 20 wells to the company-owned pipeline. Associated with this first phase is the acquisition of a saltwater well for dewatering cost reduction at the present and adjacent company-owned parcels. Where the company’s oil activities are concerned, production is ongoing at its North Dakota properties, where small but consistent production is occurring.
From an overall perspective, the only real issue facing the company is its ability to get its product out of the ground and to market as fast as the market would like. A methodical approach is working fine for the company, but not necessarily for the market. Jayhawk Energy is well aware of where it stands and intends to proceed along its timeline for a stable and continuing flow of profits. The company has no plans to be a flash in the pan when commodity prices are across the board. Look for this company to be a long-term player with consistent revenues well into the future.
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