Some companies just have all the luck. They work to find what they know could be a lucrative product, and find it. Then, to top off the find, the product’s value shoots through the roof just as the company’s efforts hit their production stride. Timing and luck – there is little one can do to predict it, but when the two get together there’s a solid payday on the way.
New Century Energy Corp., an oil and gas exploration and development company, works to explore and develop oil and gas properties in Texas. The company currently owns over 20,000 acres of oil producing properties and is working to increase its holdings through 2008. Where many smaller oil and gas exploration companies are looking to recapture or find new sources of oil and gas, New Century Energy is producing oil and gas with positive revenue results.
In the first quarter of 2008, the company saw oil production increase by 48% from the same period one year earlier. Revenue has likewise increased by just short of 100%. Although impressive, it should be noted that this revenue figure was calculated based on pricing of just under $100 per barrel. Given current pricing, the company is obviously seeing enhanced revenue from ongoing operations in greater amounts. Current expectations include bringing 3 additional wells online by the end of 2008.
Currently, the company’s oil to gas ratio is 74% to 26%. With both commodities finding spot prices rising on a regular basis, the future appears remarkably bright. The future also looks bright as its proven reserves top 2 million barrels of oil and quarterly production of natural gas of 144MMCF. Timing in the oil and gas markets is everything. New Century Energy corp. has put in the effort and now appears to be enjoying it.
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