Oil Gas Exploration Companies Texas

Sherwood Resources does not explore. The company’s principals have extensive experience in domestic exploration and they have concluded that the maturity of most US basins makes exploration too difficult and risky for all but the most heavily capitalized exploration companies. These basins still witness large discoveries and Sherwood has successfully secured positions in many of these large discoveries by primarily reacting quickly to announcements of discoveries and developing leasehold and royalty positions in these discoveries. This is possible because of the complexity of land titles on private fee in most US petroleum basins. The land titles and surveying issues are so complicated no company can hope to perfect 100% ownership of any discovery it makes.

Sherwood after conducting a rigorous and thorough examination of title and surveying issues around major discoveries concludes that 5-15% of the proved acreage in most discoveries is unleased at the time the discovery is made. Sherwood’s total focus is on monitoring significant Domestic Onshore Wildcats and reacting quickly to news of a discovery and identifying and leasing these uncommitted interests. Yields have been consistently above 5% of the proved area in the fields. These interests are acquired after the acreage has been proved and involve no expenditures for G&G, drilling or the impairments of accompanying dry holes. By avoiding these impairments which are massive, Sherwood preserves the large multiplier of return of a major discovery without exploration risk. Sherwood believes this is the surest route to the acquisition of significant reserves with supernormal returns and strictly delimited exposure to exploratory risk.