Oil and Gas Acquisitions

Waterflood njection ExampleAt Sokol Energy we are proud to be working directly with who we believe to be some of the finest minds in petroleum engineering to meet our goals.  We specialize in financing oil and gas recovery projects with a focus on secondary and tertiary recovery methods, utilizing CO2, microbial, and Water flooding injection techniques to recover large reserves that previous owners left behind.

Often, we are able to utilize our own equipment and service staff to work over, drill side tracks, drill injection wells, and do whatever else is necessary in the field for maximum production.  This keeps costs relatively low compared to outsourcing these services to 3rd parties, maximizing profitability.

 

 

 

We focus on 3 things that make oil companies successful:

  1. Proven and Already Producing Reserves
  2. Proper Workover/Intervention Plans and Team Implementation
  3. Highest Percentage Recovery Methods with some of the best Petroleum Engineers in the world.

 

Our Acquisition Modeloil_pumpjack

Our model is simple, and the fields that meet our requirements are very abundant.

We are looking for fields that have high potential, with little to no downside.

Here is an actual example:

Field A is for sale for $9 million.

 

This is a good deal that we would be interested in acquiring.  Why?

  1. 2 million barrels of proven recoverable oil could mean close to $200 million topside value.
  2. Already producing close to $8,000/day in IMMEDIATE Cash Flow, also means existing oil buying customer.
  3. Room to Expand, additional 23 wells can be done cost effectively using our own crews and equipment.

 

We may also “buy in” to existing projects, where a field may need capital to get production up.  In the right situation, this can be very advantageous for Sokol Energy, as the property is already being managed. If we deem the operator has the necessary experience and team, then Sokol Energy may invest in the field, or even implement our own team as necessary for maximum results.

Water flooding

Basic illustration of this project’s formation. This illustration only shows one of several productive sand formations on each well.

 

One field we are investigating has around 30 million barrels of proven recoverable reserves, with a solid plan for recovering the maximum amount of oil over the next 10 years.  All they need is the capital to recover it.  Sokol Energy can provide that capital, and over the next 60-120 months collect a 300-500% profit from this field alone.

Every day, new oil fields come up for sale from people retiring, or large public companies that want to get more cash on their books, or simply equity in exchange for working capital.

 

 

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