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Field Discovery is BIG News for this Small E&P Oil Company

Petro River Oil (OTC:PTRC) just announced it made a significant oil discovery. While most oil and gas industry headlines are focusing on the ability to make a profit with oil trading at near rock bottom prices, why is a discovery important? Previously announced oil discoveries in Alaska by Spanish oil company Repsol SA (BME:REP) and Hurricane Energy’s (OTC:HRCXF) claim of “largest undeveloped (oil) discovery on the U.K. continental shelf,” rocketed the valuation of each company.  Each of these discoveries will not impact the actual supply chain until 2021 for Alaska production and 2019 for the UK discovery meaning additional carrying costs on top of other major company legacy costs.  Petro River, with a market cap of $13.5 million, has no legacy costs and no debt and is looking at potential discovery reserves of over 21 mm barrels from its Oklahoma and California projects that can be added to the supply chain as quickly as Petro can drill.

The Geopolitical importance of new oil discovery in the US is obvious and compelling – less dependency on foreign oil, positive effect on trade imbalance and the creation of more jobs.  Not many other industries can provide such a quick fix with resources, technology and manpower to facilitate these mandates.

Petro River is a conventional oil company with its core focus on discovery.  Using the latest innovative 3-D seismic technology, Petro River is concentrating on historically prolific fields including Osage County, OK and Kern County, California where over 200 million and 108 million barrels, respectfully, were extracted from historical vertical production.  It’s a simple and cost effective business plan. Find the overlooked oil fields through analysis of the 3-D seismic data, then drill and drain the discovery.

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