Business Strategy Overview
P3’s central strategic focus is on developing low-risk infill development projects, acquisitions, and exploitation of our leasehold position. Since 1984, our main goal is to create value for our investors by building an onshore oil and natural gas resource base in East Texas, the Texas Panhandle, and Western Oklahoma.
In 1999, P3 began its work-over rig business. In 2007, we entered into the plugging and abandonment business. P3 continues to hire work-over experienced personnel and individuals with over decade long plugging and abandoning experience. Since entering this field, P3 has drilled, completed, reentered or plugged and abandoned over 500 wells.
Below are P3’s key elements for both our business strategy as operators and energy service providers:
Build Regional Scale
P3 believes one of the keys to success in the oil and natural gas exploration industry is to build significant operating scale in a limited number of areas that share many similar geological and operational characteristics. Achieving such scale provides many benefits, including superior geo-scientific and engineering information, higher per-unit revenues, lower per-unit operating costs, greater rates of drilling success, higher returns from more easily integrated acquisitions and higher returns on drilling investment.
Focus on Low Costs
By proactively minimizing lease operating and administrative expenses through focused activities and increased scale, P3 has been able to deliver attractive profit margins and financial returns through all phases of the commodity price cycle. Our low cost structure is the result of management's effective cost control programs, a high-quality asset base, and extensive and competitive services in key operating areas.
A company is known by the people it keeps and we are proud to say that we hire the best, develop them as leaders and allow them to do their jobs. We believe that the foundation of the Company is the talent and dedication of its employees and their spirit of cooperation.
Maintain Entreprenurial Culture
Since 1984 our management team has guided the company through the various operational and industry challenges and extremes that accompany the oil and natural gas business. P3 takes pride in the innovative and aggressive implementation of our business strategy and strives to be as entrepreneurial today as it has been in its past. We maintain an unusually flat organizational structure as we have grown to help ensure that important information travels rapidly through the company and decisions are made and implemented quickly.
To control costs and service provider quality, we have made significant equipment investments in our leasehold, workover, plugging and abandoning, and trucking service operations. We operate 95 percent of the wells in which we are working interest owners. Those wells deliver approximately 87 percent of our daily production volume. This large percentage of operated properties provides us with a high degree of operating flexibility and cost control.