In the natural resources exploration and development game, the process of discovering natural resources usually requires long months of exploration and development. Exploration tracts are generally large and picked over, dictating months of research and application of new technology to find positive results. Every once in a while, however, a company hits pay dirt on its first effort. If an investor pays close attention to the natural resources market, they may come across a company that has gotten lucky with a quick and profitable find.
Emvelco Inc., a recently formed (2008) oil and gas company, works to explore and exploit gas and oil deposits primarily in West Texas. Through its wholly owned subsidiary, Davy Crockett Gas Company, the company has had tremendous success with its first gas well (in a joint venture with Vortex Ocean One.) In addition to its gas activities, the company also owns and manages real estate investments in the United States and Croatia.
The company’s West Texas gas operations have recently found solid successes at the relatively shallow depth of approximately 4,700 feet. Generally speaking, this success is rather astonishing as the company was formed in 2008 and has just begun its gas exploration and drilling activities. As this initial well is prepared for production, a second well has been planned. Pending results of these two wells, the company expects four more wells to be drilled and tied in for revenue generation.
An “out of the box” start such as this is a rather unique occurrence, with the company bringing its experience, through its oil and gas team members, to bear. It has 86 additional proven wells at the site and will proceed with them as opportunity warrants. Maintaining this good fortune will be a key for the company as it continues to get its young corporate structure under control.
Although Emvelco’s legacy drilling program may show and hold long term profit potential, first well strikes of gas are a rare occurrence. If, however, their West Texas field can continue to bear fruit, it will most certainly be capitalizing on a steady flow of profits for future ventures.
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