In less than a decade, Texas Allied Petroleum or TAP has made its name in the oil industry. The headquarters of this natural gas production and exploration company are located in Austin, Texas. But, they are presently producing wells in Oklahoma, Wyoming, Kansas, Louisiana state waters and in other parts of Texas. From its focus on natural gas exploration during its early years in business, TAP shifted its concentration to the production of oil in 2009 because of the dramatic change in natural gas prices. Its objective is to get a mix of 50 percent of oil production and 50 percent of natural gas production which will allow it to make more constant revenue stream. Before 2009, in order to get some prospects, the company had a strong focus on shallow 3-d seismic bright spot technologies. The bright spot posted high success rates in terms of accuracy in being a gas signature, which can be converted into seismic data, compared to the use of subsurface geology that doesn’t use a bright spot.
Its decision to venture into shallow exploration provided it a huge success and enabled the company to acquire more assets which they can use for the company’s long and short term development. In order to boost the company’s revenue, TAP gives emphasis on fields with substantial work over capabilities as well as gets assets with proved undeveloped (PUD) locations that can be drilled. These kinds of assets provide an increase in the company’s drillable inventory and reduce their costs on lease acquisitions.
Recently, it has been able to acquire small positions in huge projects on scale drilling which they made possible through Oklahoma’s forced pooling process. This is a significant strategy for the company because this allows it to take advantage of the comprehensive experience, resources and capital that major oil companies have been holding. This way, it doesn’t have to incur the substantial overhead expenses in its drilling operations. Texas Allied Petroleum chose to acquire working interests with Exxon and Newfield Exploration through the pooling process.
