All,
By now you've probably read the press release for our 4Q11 drilling program. I'm heading to West Texas today to manage the drilling and completion, so I'll keep this post brief.
The take-away from the drilling program is that it could more than double our current production levels. This assumes we make our baseline estimates of average performance for the five wells, which we believe are conservative. Keep in mind that there is likely to be significant variation in performance for individual wells, so I recommend that everyone reserve judgement on the program until we finish testing.
The more important item announced today is the partnership with BlueRock Energy Capital. I worked with these guys during my previous life as an investment banker. Their team is made up of professionals with direct experience in oil & gas development. They spend most of their time evaluating management teams and the assets that they've assembled. The fact that they not only gave us verbal encouragement, but also put their money behind us means a lot. We'll do everything we can to make sure that bet pays off for them and for Adino's shareholders.
I'd like to point out one more thing about our new financial partners. Their primary funding comes from Tudor, Pickering, Holt & Co through its private equity arm, TPH Partners. TPH is probably the premier independent investment bank in the energy industry. In addition to evaluation by BlueRock's team, Adino had to gain support from TPH to close funding for our new drilling program. It's hard to overstate the importance of validation of our plan by these two groups of seasoned energy professionals. You can learn more about BlueRock here and TPH here.
I'm off to West Texas. I'll keep everyone updated on our progress so check back regularly. You can also sign up for email alerts at the top right of this page. I'll never share your email address or use it for any purpose other than to update you on posts from this blog.
Let's go make some oil!
-Shannon McAdams
Houston, TX
Thanks for the updates. The long term holders of ADNY value this transparency.
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