Investors sent the shares of Lucas Energy Inc. (LUCE.OB) up a solid 4% in value today. It is clear to savvy investors, that the Company has several distinct competitive advantages in the industry.
These critical areas are size of operations, experience, and contacts. These competitive advantages are brought to the company in the form of its technical and management personnel, and the dedicated business focus established by management.
As to size, it forms two important guidelines for the company. First, being a small company looking for small acquisitions is a decided advantage in the oil and gas industries today. Larger companies, and most mid-size companies, are searching for large acquisitions to make a successful increase in the size of company.
Experience is the most important factor in the location of acquisitions, evaluating the acquisitions, and in the clean up and improvement of the acquisitions. You make money now in the oil and gas industry by finding a good acquisition, at a good price, with the potential for improvement.
Management in the oil and gas industry is critical. The most important management factor for a small company is the hands on experience to manage wells at the field level.
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