Despite minor spikes in recent weeks, crude oil prices continue to hover near their lowest levels since 2009. According to the Houston Chronicle, the low prices have left thousands of wells throughout the United States incomplete, as drilling companies delay construction until crude oil prices return to more financially viable levels.
In large part, these delays are a result of a dependence on unconventional wells, which require modern techniques, including fracking, to achieve oil flow. For these wells, the costs of installing extraction equipment can account for as much as two-thirds of the total drilling expenses, adding significant capital investment to the back-end of drilling procedures that are difficult to justify with oil prices just north of $52 per barrel.
Falcon Crest Energy, Inc. (OTC PINK: FCEN), through its Rocky Ford Field leasehold in Crook County, Wyoming, is in a strong position to prosper despite lower oil costs.
“What makes this play [in Rocky Ford Field] particularly attractive is that the drilling depths on this play are shallow (less than 300M) making it very low cost to both explore and develop,” stated Patrick Johnson, Chief Executive Officer of Falcon Crest.
Conventional oil wells, such as those planned for the company’s leasehold, are increasingly attractive for those in the oil and gas industry because drilling expenses account for nearly all of the costs associated with well development. As the drilling of unconventional wells begins to slow down or halt as a result of the drop in oil prices, experts expect rising demand to drive a rebound for the oil market in the future.
“We believe we can do very well even at $50 oil, and believe the markets will soon be turning to these kinds of conventional non-shale, non-fracking opportunities,” continued Johnson.
A 100 percent working interest in its Rocky Ford Field leasehold gives Falcon Crest maximum flexibility in terms of the exploration and development of the property. As the company continues towards completion of its development strategy, it is expected Falcon Crest will carve out a sustainable niche in the evolving oil and gas industry. With industry experts forecasting a second oil boom for the state of Wyoming in the coming years, the future appears to be bright for shareholders of this development stage oil and gas exploration and production company. Johnson echoed this excitement in one of the company’s recent press releases.
“Falcon Crest is strongly positioned in the right place and at the right time. We’re excited to have an established presence in such a high-interest region offering such incredible opportunity.”
For more information on the company, visit www.FalconCrestEnergy.com.
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