Management Strategy
Our strategy consists of a four pronged approach:
- Develop our existing inventory along the Gulf Coast:
we have ownership in four major salt domes along the Gulf
Coast, an area where we have drilled and operated
successfully for years. We are stepping up our effort
in the Gulf Coast through an active acquisition and
drilling program.
- Invest in California in areas we know and have
had a successful history:
we have made two investments in California where we are
launching major development programs. Our California
investment will diversify our production base and increase
the amount of long-life steady production in our holdings.
We look at California as a major growth area for ERG.
- Asset rationalization:
we will continue to rationalize our holdings to ensure we
are investing where we can maximize returns and most
efficiently allocate our resources.
- Preserve financial health and liquidity: we will not operate in a highly levered state for long periods and will ensure we always have sufficient liquidity. Not only will this protect ERG from market volatility, it will also avail us to “opportunistic” capital.
In order to execute this strategy, we must continue to invest in our most valuable asset – our employees. We have a group of employees who have been with the company for a number of years who have been instrumental in achieving our growth. In order to continue our rapid growth in the Gulf Coast and California, we added substantially to our Management Team in 2010.