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| Our Mission |
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The mission of AER is to grow steadily and become one of the premier independent oil and gas producers in the United States. Assuming the fulfillment of its projected working capital requirements, the Company's financial objective is to achieve on-going revenue per acquired asset after all costs have been recouped.
Our business strategy is to enhance the Company's value primarily through the acquisition, development and production of proved undeveloped natural gas and oil reserves in areas that have:
- a substantial existing infrastructure of oil and natural gas pipelines and production/processing platforms;
- geographic proximity to well-developed markets for natural gas and oil;
- a large number of properties that major oil companies, exploration-oriented independents and others consider non-strategic; and
- a relatively stable history of consistently applied governmental regulations for offshore natural gas and oil development and production.
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We believe this strategy significantly reduces the risks associated with traditional natural gas and oil exploration. Unlike oil and gas companies that conduct exploration activities, our focus is to acquire properties that have been previously explored by others and found to contain current production as well as yet unexploited proven reserves. During the life span of these properties, they may become non-core or non-strategic to their original owners. Reasons that a property may become non-core or non-strategic are varied. For example, companies may elect to concentrate their efforts elsewhere, to reduce their capital spending for development, or to pursue
exploration projects as opposed to development projects. Also, a lease expiration date may be approaching and the owner may be unwilling to complete a development program. The age of the owner may be a significant factor toward selling a given property.
Companies pursuing exploration success may discover hydrocarbons which may not provide an acceptable economic return for their purposes, however, such a project may prove attractive to AER, because we are not engaging in capital-intensive exploration. If such a project were economically attractive, Management could complete an evaluation and make a determination whether to acquire the project. Each oil discovery by another company in our core area is a potential opportunity for the application of our approach.
AER focuses on developing projects in the shortest time possible between initial investment and first revenue generated in order to maximize our rate of return. The Company intends to operate the properties in which we acquire a majority working interest and begin a development program with proved reserves. The Company intends to initiate new development projects by simultaneously obtaining the various required components such as the pipeline as well as well completion equipment. This strategy, combined with our ability to rapidly evaluate and implement a project's requirements, allows us to complete the development project and commence production as quickly and efficiently as possible. |
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