While no one gets destroyed in this story, the prevaling tale is the same. The smaller prevails over the larger. It is in oil rich California where this saga is unfolding.
California is the nation’s third-largest oil producer behind Texas and North Dakota, according to the federal government. The majority of the supply comes from Kern County, home to the five most productive petroleum fields in the state. Kern County produces 66% of the oil in California, about 10% of the U.S. oil supply, and approximately 1% of the world’s total oil production.
Recent announcements from Petro RiverOil (PTRC), an oil exploration company have been garnering not so quiet headlines among a field of Goliath companies like Ocidental, Shell and Chevron. Multiple oil discoveries in Oklahoma by Petro River, and now a spudding campaign in Kern County is setting this company apart in a field of much larger companies. This company makes no claim nor can they as to any comparison of total reserves or giant infrastructure. They do not need to. They are pumping oil today. Their claim is that of vast over looked resources, over 7,000 acres in historically prolific fields in Kern County, and their use of risk reducing 3-D seismic exploration technology. Couple those stats to intellegent partnering with infrastructure experts and it is a win win situation brewing for this “David” among “Goliaths”.
With the recent meltdown in oil prices, major players in California have been forced to curtail or shut down production. Although they contiue to follow a path of discovery almost all of those discoveries revolve around shale and the high infrastructure and geo political costs associated. A Westwood firm, California Resources Corp., recently spun off from Occidental Petroleum Corp., said the project was “no longer practical in the current commodity price environment.”
Those dramatic axiums of business do not apply to this micro cap, they carry little debt, have lower conventional drilling costs, control vast historically oil rich fields, rely on advanced 3-D seismic technology, and maintain over 150 years of experienced, seasoned engineering and financial expertise. While all in the oil industry pyne for higher prices, it is the smaller more flexable and adaptable companies that thrive in an otherwise dismal market. Just ask David.
Disclaimer: OG Market Report has been compensated in the past, and expects to be compensated in the future, by Petro River Oil Corp. for investor relations services. OG Market Report reserves the right to be compensated for investor relations services by companies mentioned in this article. OG Market Report is not liable for any investment decisions by its readers or subscribers. OG Market Report is NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.
