RGR is an investment company that participates in oil exploration and exploitation projects.
The goal is to find undiscovered reservoirs (even small ones) on

• currently producing oil fields
• abandoned and orphaned fields

RGR doesn’t purchase leases itself. In a first step, the company geologists and petroleum engineers analyze publicly available data about North American leases held by small and mid-sized oil companies, according to specific criteria. RGR then contacts the lease owners of promising prospects and negotiates a letter of intent.

These agreements allow RGR to analyze all available data about a prospective oil field (geological, geophysical, economical, etc.). If a minimum set of criteria are met, RGR undertakes the exploration with GeoSpectra IPDS® at its own cost.

RGR only shares in the costs of development and production, if oil reservoirs are discovered which justify further investment and a mutual profit sharing agreement is reached under which RGR participates in the earnings from these newly found reservoirs on a permanent basis.

The bandwidth for possible profit-sharing agreements ranges from:

• A royalty agreement with land owners who are not engaged in any oil production on their property (i.e a farmers, ranchers, etc.), where RGR covers all costs
• First in - First out agreements, where RGR also covers all the costs and where the lease holder only begins receiving a share of the profits after the costs have been recouped
• Cost-Splitting models, where all costs and profits are permanently shared on a negotiated basis

RGR is not expecting to find a few, large reservoirs but a large number of fairly small reservoirs, where the profitability can be calculated exactly thanks to GeoSpectra IPDS®.