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COPYRIGHT 2005 Hart Publications, Inc.
Oil and Gas Investor: Describe the strategy that drives your company.
Erickson: Increasing shareholder value through the exploitation of unconventional gas resources--primarily tight-gas sands. We've put together a large acreage position in two strategic areas in the Rocky Mountains.
Our primary focus is in the Uinta Basin in Utah where we have approximately 135,000 gross acres, 68,000 net acres under lease. To date, we've drilled 30 wells there. That play is emerging, we've demonstrated commerciality, and it's moving more into an exploitation window for us. In 2005, we're currently targeting a $38-million budget. We're looking at drilling about 20 gross wells in the Uinta Basin versus 10 last year, so we're trying to double the activity level. We're in a strong capital position with about $46 million cash on hand at the end of the first quarter. Our investment should result in strong production and reserve growth.
In the Green River Basin, we've put together another similarly large acreage position of approximately 130,000 gross acres and 65,000 net acres. We've acquired a lot of 2-D and 3-D seismic data, participated in nine wells and identified a couple of interesting opportunities but haven't demonstrated commerciality yet. As a small company,...
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