slatewell holdings ltd. l About slate exploration L.L.P - Bookmark One India

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• slatewell holdings ltd. l About slate exploration
  L.L.P Bookmarks One India

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Slate Exploration is the production division of
Slate Holdings Inc. Through a combination of
development and acquisition, Slate Exploration
currently holds over 600,000 Bbls of oil in
reserve.
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PROPERTY ACQUISITION Slate Exploration acquires
properties located in the best producing areas of
the United States. These properties are expected
to produce oil and gas for many years to come and
typically have been productive for decades. These
low-risk assets exhibit a common set of
characteristics Proven production history with
shallow rates of decline Relatively low costs
that maximize profit margins Geologically complex
reservoirs that offer additional production
potential
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The advantage of acquiring properties with
established production histories is the
predictability of future production. Early life
of a well production is at its highest, but the
rate of decline is very steep and difficult to
estimate. By acquiring mature onshore properties
in well established areas from quality operators,
Slate Exploration is building a stable and
predictable base of production that should be
economic for many years to come.
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DEVELOPMENT ACTIVITIES We look to increase
production and reserves through low-risk means
including recompletions, development drilling and
the reduction of operating costs. By increasing
production or lowering the rate of production
decline, we are able to generate cash flow that
is over and above the forecast used to acquire
the reserves. This incremental cash flow creates
value for our shareholders. Our development
programs also unveil additional reserves which
then provide an inventory of upsides for future
growth projects.
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The ResultsOur strategy has been very
successful. From our inception in 1986 through
2008, Slate Exploration has acquired 400,000
cubic feet of gas equivalent (Bcfe where six Mcf
of natural gas equals one barrel of oil). Through
our exploitation and development efforts, we have
been able to add 200,000 Bcfe, or 112, to that
original amount utilizing only 89 of our cash
flow from operations. Importantly, we have
identified an additional low-risk inventory of
1,200,000 Bcfe of upsides to be added to our
inventory over the next 3 - 5 years
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How Do We Compare?Efficiently Balance
Acquisitions and DevelopmentDiligent execution
of Slate Exploration's proven strategy has
generated significant reserve additions from both
acquisitions and development. Having expertise in
both arenas allows us to customize growth plans
and take advantage of opportunities created by
changing market conditions. Leveraging both skill
sets has created a remarkable balance in our
reserve additions with 58 coming from
acquisitions and 42 from development efforts.