Mads Andersen went on a field visit to Louisiana at the beginning of October 2023, To review potential well acquisitions in the area, including their prerequisites and opportunities for development.

"Why do we do what we do?"
The well you see is a typical candidate for work-over wells (Re-Entry), which are wells that have not been maintained for a few years and are no longer in production. The reasons for this can be many, often including mechanical problems such as a faulty motor, leaking production pipe, or a faulty pump unit down the well. The current owner may not want to spend money on the well or may lack the capital to do the necessary work. It could also be that the current owner is only interested in wells with production of over 50 barrels per day, while this well typically produces only 5-10 barrels per day.
On the other hand, these wells fit our model perfectly, as we are interested in acquiring them. Even wells producing 5-10 barrels per day can be profitable for us. Additionally, we receive good tax advantages on the oil produced by these wells, as production below 10 barrels per day qualifies our wells as marginal or "stripper" wells, subject to only 3.2% oil tax to the state. Our operators can often perform necessary work at a lower cost compared to operators of larger companies, which typically have higher fixed operating costs.