Exploration Philosophy

Suemaur’s fundamental philosophy is to acquire, drill and develop technically and financially sound properties that have the potential to make a significant, positive monetary impact for Suemaur.

Our approach is to focus regionally on proven trends that meet our economic criteria including a realistic estimate of geologic and operational risk. We believe that the foundation upon which a successful effort is built begins with a thorough understanding of the play types. Suemaur incorporates a layered approach to asset evaluation where all available geological, geophysical and engineering data are incorporated into a cohesive data set. Suemaur is looking for projects that have the potential to make a major financial impact.

Historically, Suemaur has created significant value through exploration and the majority of our reserve value was monetized, not through long term production, but rather through sale of reserves in place, at a premium, to large producers or utility companies. This reduced both the long term engineering risk and price risk associated with the assets. In the current market conditions, we recognize that strategic acquisitions are now very attractive, not only for the PDP reserve value but also for their exploitation potential.

For example, currently the oil and natural gas markets are over supplied and product prices are low. Markets are inevitably self-correcting. Supply and demand will ultimately rebalance the market and prices will rise to reflect their true replacement value. Accordingly, the present time may be near optimum to make selective strategic acquisitions.

Today, many major oil companies and large independents are shifting their emphasis and capital toward just a few select resource plays. Suemaur, as an experienced and efficient operator, will take advantage of the opportunities resulting from their exodus from these still attractive trends.