The U.S. offers almost perfect conditions to realize RGR’s business model:

• The law allows drilling for oil without having to own the land itself (separation of surface rights and mineral rights).
• Landowners who do not exploit oil themselves are used to transferring their mineral rights for a royalty share of the earnings generated.
• Small and mid-sized oil companies in the U.S. and Canada are almost always looking for partners and financial investors for their exploration projects.
• The North American Industry Classification System currently lists 5856 registered oil companies; additionally there are thousands of land owners with suspected deposits on their properties and many thousand abandoned and orphaned oil wells (8000 in Pennsylvania alone, more than 6000 in Texas, etc.).
• No sales risk: Even small amounts of oil can be sold in the U.S. without a problem, at world market prices minus a small charge (currently between 3 and 10 USD/Barrel).
• Drilling costs are much lower due to the extensive existing infrastructure compared to other “oil countries” and project-specific savings in production costs can be achieved by reusing existing equipment on currently or formerly producing fields.
• In the early days of oil production where to drill was determined by feel, then based on experience and in the last 80 years with the help of seismic. Inaccuracies with these methods meant that the exploitation of reservoirs was usually highly inefficient. In the U.S. wells were drilled more frequently, to make up for these inefficiencies.
  Of the approx. 880.000 oil wells worldwide, more than half (510.000) are in the U.S. but they produce relatively small amounts compared to the worldwide average. Even so, many deposits have been missed, even on fields which have been heavily over-drilled, for example because wells were usually only drilled to very shallow depths. GeoSpectra IPDS® can find these deposits that are often hidden by previous production activities.

• Several years ago, during the R&D phase of GeoSpectra IPDS®, a survey looking for small oil deposits in a U.S. location was carried out successfully and new deposits were found.

This is the result of a one-shot-operation before drilling took place. There was no other data available except for logs from the “Old Producer“ in the north and the “Dry Hole“, both of which only served as a very non-specific indicator. The two wells combined now produce 230 barrel/day.
This proves that GeoSpectra IPDS® is suitable for RGR’s needs.

Another factor which makes the U.S. market ideally suited is the growing worry about being too dependent on foreign oil imports.

This is highlighted by a speech Barack Obama made in March 2011, announcing that America is to reduce its dependence on oil imports by 30 percent within a decade, in light of the recent hikes in oil prices largely attributed to the political instabilities in the Middle East. During his speech at Georgetown University, President Obama outlined ways to reduce America’s dependence on foreign oil, including boosting fuel efficiency and increasing investments in developing alternative energy sources such as bio-fuel, natural gas, solar, and wind.

Notwithstanding the intention to go fully alternative, to reach this ambitious goal it will take, above all, an increase in domestic oil production.

The RGR approach of efficiently finding undiscovered reservoirs on producing or abandoned oilfields using GeoSpectra IPDS®, allowing their economically viable exploitation, is one of the most resource-saving possibilities to achieve this. Unlike many companies who focus on the exploitation of large, unexplored regions, RGR will focus solely on areas in which oil has already been produced.