Adventure Energy, an energy exploration company with operations in the Appalachian Basin, views the recent price action in oil as a positive for the industry and the Company. After sinking to prices in the low $30s, crude oil has rebounded sharply to trade in the mid-$50s. Although well off the $147 high seen in 2008, the 50% rise means substantial improvement in margins for producers.
Over the past 6-9 months, there has been a marked improvement in pricing for exploration companies. The prices of steel casing, rig time, site prep work, per foot drilling costs, leasehold costs, and many more ancillary items involved with drilling have come down to much more reasonable prices. On top of this, the number of contractors available for drilling has increased rapidly over the past 3 months as the number of permits has dropped. All of these factors are actively benefiting Adventure Energy as the company expands its leasehold acreage and drilling operations.
"The precipitous drop in oil prices that we saw during the second half of 2008 and early into 2009 have opened up many opportunities for our Company," said Wayne Anderson, President of Adventure Energy, Inc. "The leaseholds and drilling agreements we were able to obtain during this same period would not have been imaginable in the summer of 2008. By recognizing opportunity, we have laid a foundation for this company which we expect to lead to continued growth in terms of number of wells and most importantly revenue and bottom line earnings."
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