Growth
Strategy
Monogram intends to maintain steady growth through the
acquisition and enhancement of prior producing properties.
This method of growth is a very low risk strategy. Monogram
plans to reinvest from its net operating cash flows to
expand existing production and acquire new producing properties
through a balanced mix of debt and equity.
Monogram will enhance production and cash flow by accelerating
recovery through drilling moderate risk step-out wells
on existing recovery systems and reducing operating costs.
Key Parameters
The key parameters for the company's acquisition strategy
include:
- Acquisitions preferably completed by private negotiations
and not via competitive bidding - therefore the price
more accurately reflects value.
- The purchase price reflects the value of proven producing
category reserves only, and a small value is paid for
exploration upside.
- The objective is to achieve payback on capital in
3 months or less on funds invested.
- The ownership of multiple production leases and wells
provides reduced production risks.
