With existing wells, production is a known key to profitability. For example, given our experience in the Big Foot Field, we expect our average well to produce 8 barrels of oil per day. After considering operating and management expenses, this well is economic at $16 oil, just as it has been since 2004.
So reworking existing wells to increase production, as detailed in our business plan, makes sense because the expenses incurred increase profitability.
We cannot control the price of oil; however, we know what our existing wells, most of which we drilled–and all of which our founders operated as recently as 2012–have produced historically. Most importantly, we have experience with how to increase their production.
Increasing the barrels of oil per day increases our oil revenue no matter the oil price, which also increases your return on investment.