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Natural gas reserves and production in the US have not been keeping pace with growing demands for natural gas in the industrial and domestic sectors. California experienced spiraling natural gas prices in early 2001 as unprecedented prices of up to $10/mcf from traditionally stable prices of $2.50 to $4/mcf were registered. This supply and demand fundamental coupled with a favorable government energy policy to open up areas for exploration has created positive momentum to explore and produce; this will position companies with new production to generate substantial revenue into the future.
Vice President Dick Cheney (source NY Times April 30, 2001) states that drastic measures to increase energy supplies are justified because the geometry of supply and demand curves are so alarming. He estimates that the country needs 38,000 miles of new pipelines to carry natural gas covering the distance of Maine to California ten times.
Over 18,000 gas wells (source NY Times July 22, 2001) will be drilled this year in the US this is more activity than at the height of the 1983 oil energy crisis.
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The Rocky Mountains where SOGC actively acquires blocks and explores is considered by many including the National Petroleum Council and The US Geological Survey to hold the lions share of future domestic natural gas reserves. SOGC's plays are all located in proximity to major gas transmission lines. As noted in the professional background of Sawyer's consultants, their heavy experience in the drilling, production and transmission of natural gas is a key component in being able to optimally exploit natural gas reserve opportunities.
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