Now is the time to invest in good, sound oil and gas acquisition and drilling programs with a proven operator. The old saying “Buy Low Sell High” certainly applies today. With the lack of competitive drilling dollars only the best quality geological and geophysical prospects are being pursued. The current low oil prices have driven the costs to drill and complete down as much as 40%. The wells that Toce drills have a typical life of 10 to 20 years; therefore, we are drilling at current low costs and will sell long term into a rising oil pricing market. This makes investments in oil and gas very attractive.
Higher quality prospects are now available in South Louisiana due to less competition and fewer wells being drilled. Major oil companies and large independents have shifted their exploration efforts away from conventional onshore areas to shale plays, offshore deep water, and foreign countries. Many areas which were “held by production” are depleting because of neglect and the lack of development drilling. More and more acreage in the lucrative trends is becoming readily available. The current oil price drop has led to attractive properties being sold with productive acreage and additional drilling opportunities.
Over the long term, with the continuing economic recovery, the demand for oil and natural gas is increasing. The opportunity to buy and develop, long life, oil and gas reserves is now.