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PPWE
Company Overview
Proper Power and Energy, Inc. (OTCBB: PPWE)
Proper Power and Energy, Inc. has put together an 11,000+ acre major lease prospect in Utah with room for over 75 wells. The company believes the property holds more than 2 Billion barrels recoverable.
They will only explore prospects where the geologic target formations are known to produce oil and gas in geographically separate, but analogous, fields. They will only drill where the radiometrics tell them commercial hydrocarbons are present.
To further understand their strategy, it is important to know the difference between developmental and exploratory drilling. Exploratory wells are attempts to find new oil and gas fields, whereas development wells expand or more fully tap into a known oil or gas reservoirs.
Since Proper Power and Energy, Inc. has the appropriate technology, they will explore. In time, their technology may become the industry standard, and the word "wildcat" may apply to non-radiometrcially surveyed drilling. All of their prospects are classified as exploratory in nature, but they are not "wildcat" since they have the radiometrics data advantage. Their prospects are separated geographically from existing oil and gas production, but they are not always separated geologically or radiologically. Therein lays the difference from "wildcatting."
With reserve prices going higher, the economics of exploration with radiometrics are compelling. The company is reducing the finding costs and everything associated with the actual drilling and the completion risks. While there is a higher drilling risk associated with an exploratory well than with a development well, the reward potential with a successful exploratory well far exceeds the upside of any developmental well.
The Company geophysicist, Robert Dunbar, has commenced his initial review of the seismic data recently acquired by the Company. Mr. Dunbar has compared the initial data with his previously completed Radiometerics Plus results in the Tooele County claim. As a result, he has contacted the seismic source provider and has requested additional information and clarification regarding the actual mathematical readings in order to be better able to conclude his report.
According to Dunbar, the initial findings appear to be very encouraging and exciting. The study range area includes 11,000 acres in Rush Valley. Although he is not yet prepared to sign off on the completed study, Dunbar believes that he will be prepared to opine as to the approximate locations of the best and highest pay zones and quantities within three weeks.
Last May, the Company sent representatives to Utah to interview potential drilling companies and met with a prominent Tooele County longtime drilling group and obtained a general idea of the budgetary requirements to commence drilling the first two wells in the claim. The Company has also established contacts with local oil and gas consulting firms and will retain one to be the face and local presence for Proper Power in Utah. The local consultants will interact with Proper Power management and Robert Dunbar on all facets of operations in the State which the Company feels is an important resource tool to maintain.
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