The Company aggressively explores for, develops and produces natural gas and oil reserves, with a focus on its proved reserves and extensive undeveloped acreage positions in West Texas and the Piceance Basin. The Company operates substantially all of its wells in West Texas. The Company is also participating in drilling operations in the Arkoma and Anadarko Basins, currently as a non-operator, and has acreage interests in certain other non-core areas. The Company employs its drilling rigs and other drilling services in the exploration and development of its operated wells, and to a lesser extent on its non-operated wells.
The Company serves as operator of over 95% of the wells in which it has a working interest. The notable exceptions are the wells on Barnett and Woodford Shale acreage in Reeves County, Texas and acreage in Oklahoma. As operator, the Company selects most drilling locations, supervises the drilling and completion of the wells and produces and maintains the wells. In addition to operating most of its wells, the Company owns and operates much of the equipment that is used in the drilling of its wells, including the drilling rigs.
The Company provides drilling and related oil field services to its exploration and production business and to third-parties in both West Texas and the Piceance Basin.
The Company drills for its own account in both West Texas and the Piceance Basin through its drilling and oil field services subsidiary, Lariat Services. In addition, the Company also drills wells for other oil and natural gas companies, primarily located in the West Texas region. The Company’s rig fleet is designed to drill in its specific areas of operation and has average horsepower of 1,000 and average depth capacity of 11,300 feet.
The Company provides gathering, compression, processing and treating services of natural gas in the TransPecos region of West Texas and the Piceance Basin, through ROC Gas, Sagebrush LLC, Integra Energy, Cholla Pipeline, Larco and PSCO2.
In Pecos County, the Company operates and owns 57.5% of the Pike’s Peak treatment plant, which has the capacity to treat 60 Mmcf per day of raw natural gas for the removal of CO2 from natural gas produced in the Pinon Field and nearby areas. The Company’s midstream assets and operations in the Piceance Basin began in 1994 with the acquisition of the Black Sulfur Creek and Fawn Creek pipeline gathering systems and a 600 horsepower compressor from Swift Energy Company and KinderMorgan, Inc.
The Company’s CO2 gathering and tertiary oil recovery operations are conducted through PetroSource. The Company currently holds a 86.5% ownership interest in PetroSource. PetroSource has invested heavily in its CO2 pipeline and compression assets. PetroSource owns 231 miles of CO2 pipelines in West Texas with 71,800 horsepower of owned and leased CO2 compression.
- Avoid 
- Value Gap 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value 
