We are a growth-orientated independent energy company engaged in the acquisition, exploration, exploitation, and development of oil and natural gas properties. Our strategy is designed to build an enduring energy company that can create significant long-term value while reducing the ever-present risk that exists in the energy markets. There is money to be made in the oil and natural gas industry during both upturns and downturns. BRI endeavors to do just that while minimizing risk.
At Bakken Resources, Inc., our mission is simple: build an enduring portfolio of producing crude oil and natural gas assets that create long-term value for our shareholders.
Our long-term strategy is heavily dependent on the acquisition of new oil and natural gas assets to replace produced reserves. Shale oil and natural gas well production declines quickly after initial production. In fact, nearly 60% of a well’s lifetime production occurs during the first four producing years; declining production equals declining revenue. Therefore, it is mission critical to acquire new reserves.
In order to build a diversified portfolio of mineral assets, we seek to acquire an array of assets with unique characteristics that reduce overall risk and enhance return, such as:
- Geographic Diversification: We review and analyze the significant domestic producing basins to determine those which offer the greatest opportunity to create long-term value at the lowest cost.
- Production Cycle Diversification: Domestic shale wells have sharp production decline curves. Therefore, it is important to build a portfolio of assets whose production curves complement one another and ensure revenue continuity.
- Product Balance: Currently, nearly 90% of BRI’s revenue emanates from crude oil production. Since long-term estimates show sharper demand growth in natural gas, it is important to achieve balance among revenue sources.
- Well Capacity: As we acquire assets, it is important that each has the capacity for additional future oil and natural gas wells to be drilled.
- Strong Operators: Our business model relies upon financially strong operators to drill wells and market our oil and natural gas. A strong operator can move quickly when market opportunities appear and will not only survive during a market downturn, but can take advantage of the unique opportunities that those downturns present.
- Strategic Partners: Pursuant to our business plan and strategy, we will pursue relationships to gather information on future potential oil and gas drilling projects. BRI has explored and contemplated possible joint partnerships in other drilling programs and remains in discussion with various groups for strategic partnerships.Our mission is to exploit oil and natural gas market opportunities in a manner that reduces risk and operating costs to create shareholder value.
BRI’s unique business model when coupled with a low cost operation provides the Company the potential to create substantial long-term value. The BRI revenue model is such that we can likely increase our revenue by three to four-fold without a significant increase in operating expenses. As BRI continues to grow its asset base and annual revenue, more of that revenue can fall to the bottom line. We don’t aspire to be large; we aspire to create long-term value.