company method…
enhances frontier basin exploration
economics & efficiency.
The industry struggles to maintain profitability in the current volatile market price for oil and gas. Even though companies have implemented cost reduction strategies – this is more of survival, than generating long-term profits for the company. The current strategy is to concentrate on known plays and short-term projects that are financially less risky and are not as susceptible to the cyclical nature of oil and gas prices.
Long-term projects – new plays and frontier areas – are the basis for company growth and longevity. Woods Makenzie (2017)
“expects the best discoveries from new plays and frontier basins.” However, the industry’s exploration-to-production cycle is too long and the projects are too sensitive to changes in oil and gas prices.
Pilot shortens the exploration-to-production cycle by a factor of 2-3 – thereby, reducing financial risk and increasing the company reserves and profits.