The Moresi #1 workover is being scheduled to start in the next 1-2 weeks. (See below for a recap of oil prices}. The Monthly Settlement Averages indicate oil moving and staying in the low to mid $50 range in the next few months. There will be Winners and Losers during the current US administration as indicated below.
Losers: Politics and Executive Orders (EO’s) with this administration will undoubtedly affect oil prices, as drilling in Federal Lands and the Gulf of Mexico (GOM) are restricted along with anticipated bans on Fracing in Resource Plays. All of these EO efforts will impact the US oil output both short term as drilling slows and then long term as frustration with US O&G Policy causes Large Oil & Gas companies and Investment Groups to drill elsewhere in the world.
Winners: Shelf Energy, LLC oil and gas properties are all in Louisiana and are not on Federal lands, the GOM nor Resource Plays. The impact of these orders will currently not affect our properties. With this in mind, oil production will start to decline, OPEC will gain control again and it is expected for oil prices to move even higher. Shelf will take advantage of this market by performing all necessary work to increase production and reap the benefits of higher oil prices.