David Tasker: We are joined today by Tim Hart Managing Director of Fremont Petroleum who is talking to us from the company’s assets in Florence Colorado. Tim thanks for your time. Are you able to share with us the background to the Fremont story.
Tim Hart: Yeah sure. So the Fremont Petroleum Corporation was founded in 2006. And in 2011 we acquired 15000 acres here in Fremont County. We did have assets in Texas and we still have assets in Kentucky but we divested of our non-operating assets.
In Texas and Mississippi paid up all of our debt and we’re primarily 100 percent focused on our asset here and in Fremont County Colorado Capfinder project. We still have Kentucky assets but they’re in their idle state really just in maintenance mode. And so this is the property that we’re developing at the moment.
David Tasker: And why the focus on the Fremont area in Colorado.
Tim Hart: Well there’s a lot of history here for one. And you know we really looked at it in 2014 when the bottom fell out of oil and gas we really looked at you know what the most critical assets that we have are and here in Fremont County you know this is the second oldest the oil field in the United States and some say the world and the majority of the oil production came from the shallow shale. And so these are pretty low cost wells and applying the right technology you know we’re able to produce this field for our shale for about $400,000 a well.
Now what’s nice about it is that there is some deeper potential that hasn’t been explored and we’re looking right now at low cost ways to explore that deeper potential. And certainly, if we find that deeper potential and we can produce that for low cost then that’s a bonus. The other thing is there’s a ton of gas here.
So you know this asset is really kind of a Swiss army knife of any oil and gas company’s asset list. I mean this is exactly what you want with a varying degree of price you know commodity prices are fluctuating so much right now that you know depending on where they are we can pick and choose what we want to do. You know right now the price is not too great so we’re looking at our lowest cost assets and this property allows us to do that.
David Tasker: And some of the recent milestones the company’s been able to achieve?
Tim Hart: Well we’ve recently acquired another company. Another company here in Fremont County and now we’re the largest producer in Fremont County. And so I think that’s fairly significant. That affords us a lot of the cash that we need to operate the company and also you know develop on a go forward.
David Tasker: And what should investors be focused on from the company over the coming months?
Tim Hart: We’ve had a lot of exciting things happening. Right now we’ve got this bird 13:18. This well this well was selected by our geologist who’s been working in the field for a long, long time. He’s been the most successful geologist in the field. We applied some additional newer technology sub-surface geo-cam.
Not only can we determine sub-surface hydrocarbons but we can tell if it’s oil or if it’s gas. And so in this well this is the very first well that we that we will have drilled using that new technology. And also you know applying 3-D seismic in this field has proven very successful.
If you look back in 2008 / 2009 timeframe they applied 3D seismic in this field for the first time and they got field production up to 14 hundred barrels a day within two years. So you know there’s already been some wild success in the field and we’re just building on that success.
And so you know we’re not reinventing the wheel we’re just flying better technology more focused more vision and we certainly expect that within a short period of time we’re going to have a lot greater success than they even had back in 2008 / 2009.
David Tasker: As a senior executive in the company it must be pleasing to be sitting at the drill site while the action is happening.
Tim Hart: It’s interesting to hear you say that because this is our home we eat live and breathe in this oil field. This is not unusual for us to be out here on site. I’m out here every day at 7 o’clock when the shift starts. And we close down at 7:00 when the shift ends.
You know we are here and that’s what we do. And you know that our offices are only two miles from the oil field so we’re out here every single day. The majority of the time I’m in FR. Sometimes it’s nice to go in the air- conditioned office but we’re certainly very, very comfortable out here.
You know I’m fully responsible for this drilling operation and everything that happens is my call. If you look at the air compressors behind me to your left. And the rig right behind me and the derrick and all the guys there every single thing they’re doing is at my call where we’re orchestrating everything that we do and that is one of the reasons that we’re able to do it for such a low cost here.
We don’t manage from a distance, we manage from right here in the field. I hear what you’re saying. It’s very, very comfortable to be here believe me.
David Tasker: Tim We wish you every success. Thanks for your time.
Tim Hart: Thank you very much.
David Tasker: If you’re interested in hearing and seeing more about Fremont petroleum please visit their Web site – www.fremontpetroleum.com/