As you can probably tell, we've been very busy lately. We completed our first well on the Leonard lease, acquired a new lease, produced and released our 10K and many other things that I won't go into at this point. We're steadily building and developing our lease position, as well as our team, which together form the foundation of our growing oil & gas exploration and production company.
I'm sure by now everyone has read about the results on the Leonard #1 well. This is a great opportunity to discuss one of the key advantages to our early stage strategy: low cost, low risk development. Even wells that come in below 5 barrels of oil per day can be commercial. This is because these shallow wells have such low drilling costs, it doesn't take a lot of hydrocarbons to make them pay off. The numbers aren't sexy, but by you can build a company on the cash flow. Plus, every once in a while you can hit a really good well (even with low upfront investment), and then the economics are extraordinary.
That said, investors should understand that we're growing our reserves both through the drillbit and through acquisitions. Stay tuned on both fronts.
Best,
-Shannon
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