pepeoil
2 days ago
Yep, exciting, more dilution, yep, uplisting, nasdaq, yep, workover rigs, yep, coiled tubing, yep, Mountain V drilling, yep, offshore bank, yep
Controlledoilandgas
4 days ago
Cohen posted that on Saturday. Don't want to get too excited just but he got 18 packages in between Saturday - Monday (yesterday).
One in particular that comes with over 400 wells and 19,000 mineral acres in the Permian Basin and in South Texas.
This is in addition to the 88 Permin Basin Wells he and Watson already own in Big Spring.
The 2 + their prospective new partner are drawing out what this will look like over the next 2 weeks.
This is online with the strategy and direction that Cohen has articulated from the beginning:
(1) Enter Oil Field Service (Freedom Acquisition)(2) Optimize Revenue by shifting focus away from High Revenue at low / Break even margin towards lower revenue but higher margin Rental Revenue at cut throat pricing first through his Rental Company partner and second together with his Rental Company partner direct to operator(3) re-enter back into E&P (exploration and production) under the same strategy as his mentor Mike Shaver at Mountain V through later life production wells / reworks at scale (high we'll count, target 1/2 to 5 barrels a day per well).(4) Drill new vertical wells at shallow depths across the Permian where he already has infrastructure in place (flow lines, electric, tank batteries, and space to drill with strong supporting Offset date like he has on the Big Spring wells - his immediate neighbor next door is Apache, the wells were originally drilled by Marathon Oil at 3,000 foot depths, he has over 35 new wells drill locations and is following the exact same strategy is Forst Reserve did when they took over the acreage in 1997 before selling it to Pangea and later Big D (note - Cohen has never spoken poorly about any of the operators before him - he has an incredible amount of respect for every operator that has come before him - when he states operator neglect it is not in a way to undermine the prior operator(s), and is purely a difference in strategy (the past operators starting in 2000 did not remediate anything below ground, did not evaluate or replace tubing or casing below ground, and their records show that they focused primarily on above ground infrastructure like flow lines).
What helps ensure success is Cohen and Watson's background and relationships across Oil Field Services - to the average Oil and Gas operator - it costs at least $25-50k to workover an old well and get it to produce 1-5 barrels of oil a day or 50-200 MCFE of gas a day.
Cohen and Watson know how to do the remediation work themselves. They also have a large network of service field workers / hands that they have worked with for years. They have direct to supplier relationships and established trade lines / credit with equipment and materials (casing, tubing) vendors. And they have money and capital to pursue these types of ventures under $AZRH.
More information will be coming as these new partnerships and strategies develop fully over the coming weeks.