With SCS' recently announced technical developments, management has reported that the company is now more equipped and confident with its ability to implement simultaneous tracks and put strategies in play to both develop higher-risk, deeper targets, as well as shallower, lower-risk drilling prospects. The company believes that lower-cost, lower-risk prospects may be ready to drill much faster than the larger, more complex targets. The company is also considering that valuable geological knowledge could also be learned from such multitrack strategy, increasing the real potential for a commercial discovery of oil and/or natural gas sooner.
Under consideration for inclusion in the 2005 work program is the start of a long-term seismic coverage program to acquire additional 2D and 3D seismic necessary to pinpoint drilling locations for targets already generally located throughout the concession and locate new drilling prospects as well. With the possibility for expanded data acquisition, the company expects to enhance its marketing strategy to find working interest or drilling partners. While the company has been speaking with potential drilling partners on an increasing basis and levels of interest have been growing, consideration is being given to significantly define a proactive program to solicit partners for the larger, higher-risk, higher-return prospective areas.
When asked to comment, Watts stated, "I have had many questions over the last few months regarding how we are proceeding with our exploration operations offshore West Africa. Although we have not been actively pursuing oil company partners, we have indeed been speaking to potential partners as they have been coming to us. We will continue to do so. Over the last two years it has been made clear to us that each viable oil company we speak with has their own propensity for risk. When we find the right partner with the appropriate capabilities that is willing to stand at least side by side with the risk-reward, we will not waste time striking a deal. In the meantime, our planning is being formulated to significantly move our exploration forward, irrespective of when we sign on a partner."
Watts went on to say, "Make no mistake about it. We are involved in a risk venture that has the potential for enormous returns. We are absolutely swinging for the fence. At the same time, we are doing everything we can to reasonably mitigate risk. This risk-mitigating strategy is evidenced first by our move last year to initiate HYD Resources Corp. to obtain our own domestic proven reserves and production-based revenues. Now we are initiating plans to accelerate our exploration offshore West Africa." He closed his comments by saying, "I believe the downward trend in our stock price of recent weeks is not reflective of our company's performance and potential. As always, I would ask our shareholders to please keep abreast of our filings and news as we update and solidify our plans and work programs going forward."
Most Popular Articles