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Shareholder Update – October 2022

Categories Company News Posted on Author Marketing Team

 Joseph D’Amico Appointed Chairman and CEO

There is much to report since our last update. The most important is that Joe D’Amico, an experienced, senior oil and gas executive with public company experience, has joined the Company as our new Chairman and CEO.  Mr. D’Amico holds both a BS and MS in Petroleum Engineering from LSU and has spent his business career in the oil fields of Texas and Louisiana, including a stint as the EVP and COO of Swift Energy growing that company to be the largest oil producer in Louisiana.  We expect Joe’s experience, contacts and good management skills to speed the Company’s growth and path to public market. (Mr. D’Amico’s resume is attached). 

South Louisiana Deep Gas Prospect

The Company was approached by a family in South Louisiana about potentially leasing their land on which are three abandoned, “orphan” deep gas wells that had previously produced significant gas and condensate. After due diligence, the Company created an LLC and entered into a Letter of Intent to acquire the lease from the landowners and bring these wells back into production. Our initial research indicates significant production is still available. These wells are potentially “company makers”. There are additional “orphan” wells in the area which the Company may acquire. To fund this opportunity the Company has created a $2 million working interest/royalty offering for accredited investors and is currently advertising it in the Wall Street Journal. If you have an interest in investing in this, please contact us at admin@southplainspetroleuminc.com.

Canadian Pool Company

We have been in contact with a Canadian Pool Company to discuss a merger to go public. The discussions are in the early stages with the Canadians currently performing their due diligence on us. If we are able to agree on merger terms the end result would be public listing of our shares and a capital infusion with additional funding possibilities through the public markets.

Current Production

After reaching a high of over 1,000 barrels in monthly production earlier this summer several reservoir and mechanical issues have pushed down our production to a range of between 700 and 900 barrels per month in our Abilene area fields. We have identified several remedies and actions to implement to return to the thousand barrel per month or better rate. These will be implemented before yearend.

Oil Prices Leap to 6-Month High

Categories Market News Posted on Author Marketing Team

An article by Bloomberg today, 22nd April 2019 states that the price of Oil has leapt to a 6-month high. Crude leapt to it highest in six months after the Trump administration said it will no longer give China, India and other major economies a pass on sanctions barring purchases of Iranian Oil.

Brent crude futures closed 2.9 percent higher on Monday after U.S. Secretary of State Mike Pompeo said no more waivers will be issued on sanctions aimed at isolating the Islamic Republic. In response, Iran threatened to shut the Strait of Hormuz, a key maritime chokepoint for Persian Gulf producers, and said it’s engaged in “intensive” talks with partners to blunt the impact of Trump’s escalation.

“The decision will not only mean maximum pressure on Iran but also maximum pressure on oil markets,” Joe McMonigle, head of energy policy at Hedgeye Risk Management LLC, said in a note to clients. “Combined with declines in global crude stocks, continued losses in Venezuela production as well as a possible disruption in Libya, a zero-waivers Iran decision will present a challenge to keeping global oil prices in check.”

The existing exemptions — issued to China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey — are set to expire on May 2. Brent, the international crude benchmark, has risen almost 40 percent this year as the Organization of Petroleum Exporting Countries and allies such as Russia curbed output. American sanctions on Iran and Venezuela, as well as conflict in oil-rich Libya, squeezed supplies further.

Saudi Energy Minister Khalid Al-Falih said Monday the kingdom will coordinate with fellow oil producers to ensure the global crude market “does not go out of balance.”

Brent for June settlement climbed $2.07 to $74.04 a barrel on London’s ICE Futures Europe exchange. It was the highest close for the contract since Oct. 31.

West Texas Intermediate for May delivery, which expires Monday, advanced $1.70 to $65.70 on the New York Mercantile Exchange, while the more-active June contract rose by $1.48 to $65.55.

Oil-explorer stocks also benefited, with Pompeo noting that surging American production will help replace Iranian barrels. The S&P 500 Energy Index rose as much as 2.2 percent, with gains led by Marathon Oil Corp. and Devon Energy Corp.

Gasoline futures added 2.8 percent, reaching the highest price since early October.

The decision to wind down the waivers came after National Security Adviser John Bolton argued that U.S. promises to get tough on Iran were meaningless with the exemptions still in place.

It was a harsher step than some investors expected, said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. The ultimate impact depends on how hard the Saudis work to fill the gap and how President Donald Trump reacts if the crackdown impacts U.S. consumers, he said.

“These last few days, we’ve seen plenty of stories about rising gasoline prices, just in time for the summer driving season,” Lynch said. “What everybody is going to be pointing to is Trump tightening sanctions on Iran.”

A WORD FROM SOUTH PLAINS PETROLEUM, INC.

South Plains Petroleum, Inc. welcome this leap in oil prices as a result of US sanctions on Iranian Oil.

Higher oil prices will stimulate an increase in drilling activity and may make properties that were previously non-economic financially viable again.

As a US based oil and natural gas production and development company we welcome this sanction as it will mean higher demand for oil and gas produced domestically here in the United States.

Richard A. Quintal, President, South Plains Petroleum, Inc.

USEFUL LINKS

Article Source: https://www.bloomberg.com/news/articles/2019-04-21/oil-rises-on-signs-of-slowing-u-s-drilling-supply-disruption

New Website Launch

Categories Company News Posted on Author Marketing Team

South Plains Petroleum, Inc. the US based oil and natural gas production and development company, has today launched a new corporate website: southplainspetroleuminc.com.

From this date on wards the company will use this website to announce news, and provide company and project information and updates as well as other information which we feel is valuable to our site visitors. This website will likely change and develop over time with the addition of new information sections, enhancements and features as and when the need requires it.

Should you wish to contact our in-house marketing team about a website issue or enhancement please email: admin@southplainspetroleuminc.com.

President Note:

South Plains Petroleum, Inc. is excited to launch this new website, as it marks another step in our exciting journey and commitment to building a great energy company.

This website will enable us to better serve our investors, partners and others, keeping them all informed of our process. We also hope this website can be used to help source and identify new projects and potential partners. If you have something exciting, please get in touch.

Richard A. Quintal, President, South Plains Petroleum, Inc.

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