Lenorel Oil and Gas is focused on achieving profitable, rapid and sustainable growth within the UK upstream industry. Our goal is to consistently generate above-average returns for our shareholders by acquiring and managing a growing portfolio of both new and mature oil and gas assets, to which we can add significant value through innovative technology and commercial expertise.
Lenorel intends to achieve its growth objectives by applying the most advanced drilling and production technologies within historic hydrocarbon-rich basins in order to access "new oil from old fields".
We believe this is an extremely attractive growth strategy for an emerging oil and gas company for several key reasons:
Risk: In global terms, onshore UK is a politically and geologically low-risk area. It is also relatively low-cost, with readily available services and abundant infrastructure in place so that wells can be reworked and brought back into production inexpensively and quickly. This enables early income generation, while ongoing operating costs can and will be kept to a minimum.
Reward: The probability of achieving healthy cash flow and rapid payback - which in turn allows for ongoing investment in additional growth projects - is much higher in these mature hydrocarbon basins than it is in remote exploratory plays elsewhere in the world.
Potential: The scope for sustained profitable growth in these established producing areas is virtually unlimited. Just to give one example: the Central Kansas Uplift (CKU), in which Lenorel 'S Bloom Property is located, has yielded more than 6 billion barrels of oil. Today, production from the CKU is less than a third of what it was 50 years ago – yet the Kansas Geological Survey estimates that 60 per cent of the region's recoverable reserves remain untapped.
Innovative technology: Many of the oil industry's most significant technological innovations, developed throughout the Barnett Shale phenomenon, are now being successfully applied within these historic producing areas. Horizontal drilling, for example, accounted for less than 10% of wells drilled in the UK eight years ago, but now accounts for more than half of all UK drilling activity.