News

March 04, 2009

Resaca Exploitation Reins In Spending Plans In Response To Oil Price Decline And Eyes New Opportunities

The world has changed in some rather significant ways since Resaca Exploitation debuted on AIM in July 2008. Apparently once indomitable giants of the banking world have crumbled, governments are injecting billions of tax payers’ money into propping up the financial system and the oil price has plummeted to less than a third of its former highs. This, of course, creates problems for oil price sensitive businesses like AIM-quoted Resaca, which targets known reserves in the well-understood Permian Basin of the US.

The Houston-headquartered firm holds eight producing fields that are home to 326 producing wells and 90 injection wells. The company, which has 2P reserves of 28.4 million barrels of oil and 19.1 billion cubic feet of natural gas and 3P reserves of 33.9 million barrels of oil and 23.3 bcf of gas, plans to use primary, secondary and tertiary recovery techniques, such as drilling infill wells, opening behind pipe zones, re-completing wells, reactivating and optimizing waterfloods, improving field...