AEC Oil Company (AEC)
AEC recently entered into a Purchase Sales
Agreement (PSA) to purchase 10 1000 to 1500 HP SCR Drilling Rigs.
AEC additionally plans to purchase one or more Completion/Workover Rigs. AEC shall purchase and construct a Gas Cracking Plant, which seperates valuable liquids and NGL with dry gas. AEC shall purchase and construct a compressor station, infrastructure and other equipment as needed.
Management's reasoning for buying Drilling Rigs, Workover/Completion Rigs, components and other Oil Field equipment is to buy cheap now. We have seen the same 1000 to 1500 HP SCR Drilling Rigs we are buying for $1.5MM to $2.5MM, selling for $10MM in 2006 when the Barnett Shale was being developed. Drilling Company's listed the same type Drilling Rigs, which were crewed and working in the Field @$20MM each. The Drilling Rigs became in demand and Drilling Companies became booked, with as much as 6 months waiting times. Owning our Rigs, with crews affords AEC the ability to develop AEC's wells as Management chooses, at cost below the cost of engaging Drilling Companies to drill and Work over/Completion Companies to rework and complete AEC's Wells.
AEC's Management plans to buy, stack and maintain Drilling Rigs, Workover/Completion Rigs and all types of Oil Field Equipment for AEC's Use and for future sales when the Oil Field Rigs and Equipment increases in value.