• Focus on Provinces
• Leverage our Engineering and Operational Expertise
• Capitalize on Internally Generated Exploration Successes Through Disciplined Development Activities.
• Enhance Returns Through Operational Control

 

Our People

Our experienced exploration staff includes 11 geologists, six geophysicists, two computer applications specialists and five geological technicians. Our geologists and geophysicists have varied, but complementary backgrounds. Their diversity of experience in a wide-range of geological and geophysical settings, combined with various technical specializations (from hardware and systems to software and seismic data processing), provides us with valuable technical, intellectual resources. Our geologists and geophysicists have an average of more than 19 years of experience in the industry. We have assembled our team of geologists and geophysicists with backgrounds that complement the areas where we focus our exploration and development activities. By integrating both geologic and geophysical expertise within our project teams, we believe we possess a competitive advantage in our exploration approach.

Our land department staff includes four landmen with an average of more than 22 years of experience, primarily within our core provinces, and four lease and division order analysts. Our land department contributed to pioneering many of the innovations that have facilitated exploration using large 3-D seismic projects.

 Our operations staff includes seven engineers who have an average of 15 years of experience in drilling, reservoir, operations or environmental engineering primarily within our four core operating provinces. These engineers work closely with our geologists and geophysicists and are integrally involved in all phases of the exploration and development process, including preparation of pre- and post-drill reserve estimates, well design, production management and analysis of full cycle risked drilling economics. We conduct field operations for our operated oil and natural gas properties through a combination of our field and third party contract personnel. We recently opened a field office in Mountrail County, North Dakota in order to effectively oversea our Williston Basin activities, which we expect to account for the majority of our capital expenditure budget for 2010.

 

Our Operations

Historically, our exploration and development activities have been focused in the Onshore Gulf Coast, the Anadarko Basin and West Texas. Beginning in Late 2005, we began to acquire acreage within the Willison Basin in North Dakota and Montana and as of December 31, 2009 we have approximately 453,147 gross and 282,584 net leasehold acresin the Williston Basin. In late 2007, the majority of our drilling capital expenditures shifted from our historically active areas in the Onshore Gulf Coast, the Anadarko Basin and West Texas to the Williston Basin, where we are currently targeting the Bakken, Three Forks and Red River formations. In 2008, we drilled 53 gross wells on our Williston Basin acerage investing a total $117.4 million in drilling, land and seismic. In 2009, we drilled 54 gross wells on our Williston Basin acerage investing a $53.1 million in drilling, land and seismic. Through year-end 2009, we have invested in access $222 million on drilling, land and seismic in the Williston Basin.

In 2009, we spent a total of approximately $60.0 million on drilling, land and seismic in our operating areas. During 2010, we plan to spend approximately $183.7 million on drilling 60 gross (27.1 net) closed wells as well as drill and complete wells that were in progress at December 31, 2009. We currently expect to spend approximately $15.6 million on land and seismic and encur $14.8 million for capitalized costs. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Committments - Capital Expenditures."