Avalon views the recent price rally in oil as encouraging for the industry and for Avalon's near term acquisition plans.
"Since December, we've seen oil prices pass one ceiling after another, going from $33 per barrel to more than $72 per barrel," commented Kent A. Rodriguez, Avalon's CEO. "This translates into significant improvement in margins for producers like us," he added. "Our shareholders benefit as well, as our oil reserve assets are valued in excess of $8,000,000 in this environment."
Rodriguez was favorable about market conditions in an address to shareholders. "During the past six months, there has been a substantial improvement in supplier pricing for energy production companies. The prices of steel casing, rig time, site prep work, drilling costs, leasehold and related production costs have come down to a more reasonable level. Also, the number of contractors available for drilling has increased rapidly over the past quarter as the amount of permits has dropped."
He continued, "These factors are positively impacting Avalon's bottom line as the company expands its leasehold acreage and production operations. We are currently very excited about an oil and gas producing property in central Oklahoma, and hope to negotiate a letter of intent in the next few weeks," added Rodriguez.
Avalon's growing energy portfolio now includes production assets of 61 producing oil and gas wells in 5 states. The company will continue to expand capital deployment through the acquisition of oil and gas producing properties in Oklahoma and West Texas.
Most Popular Articles
From the Career Center
Jobs that may interest you