Executive Q&A: How a small oil company has survived the downturn
Exploration and production companies are feeling the sting of $40-per-barrel oil, but Millennium Exploration Co. is fairing better than a lot of them. The crude oil price downturn is in its second year. Meanwhile, Millennium, which turned 10 years old in July, has completed drilling a new well on its Runnells lease in Matagorda County. The company’s president, Richard Monroy, agreed to share his company’s experience with the Business Journal.
Millennium is a small company. How has it survived the downturn? We have survived the downturn by capitalizing on the lower cost of prospects and drilling. By acquiring prospects that can work at $30 per barrel, properly structuring the deal and getting it drilled cheaply and efficiently, we have stayed ahead of the curve and profitable.
How are you able to drill new wells at a time when others are cutting back on activity? Because of our strong relationship with outside private investors. Most of our clients are in other industries that have not been affected by the oil and gas downturn, so they are actively looking for quality opportunities. Because of Millennium’s reputation for dependability, these investors have continued to consistently fund our drilling programs, which keep us very busy.
What are your plans for the company over the next 12 months? In the next 12 months, we plan to assemble and drill between eight and nine new drilling prospects. With our operations arm fully staffed and capable, we plan on taking larger stakes of more ambitious prospects and aggressively developing our current producing properties.
Sergio Chapa covers manufacturing and the energy industry
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