Republic Energy (Republic) is a privately owned oil and gas company which has focused on the acquisition and development of low to medium risk oil and gas prospects since 1984. Its technical team has a total of 250+ years combined experience in the oil and gas industry with most of that experience directly related to unconventional plays. Its 28-plus year record of success has been primarily the result of shale-play specialization and the development of technical expertise in drill-site selection, completion optimization, and production performance. Since its formation, Republic has drilled or participated in over 500 wells and has achieved an economic success rate of over 95% on total invested capital in excess of $300,000,000.
In the Fort Worth Basin alone, Republic has drilled more than 350 Barnett Shale and Bend Conglomerate wells. Its initial multi-year Barnett Shale development drilling program started in 1997. After drilling and completing approximately 150 vertical Barnett wells, Republic completed its first monetization in early 2003 as Progress Fuels Corp., a wholly owned subsidiary of Progress Energy (NYSE: PGN), acquired the majority of Republic’s Barnett Shale asset base. Progress subsequently engaged Republic to operate the purchased assets for a period of one year.
Following this sale, Republic’s management believed that, given the technical expertise and infrastructure it had developed, their continued focus on the Barnett Shale enabled them to capture the highest potential economic returns of any on-shore domestic oil and gas development project available. This belief was supported by the increasing success area operators were achieving through the initial use of horizontal drilling technology and the resulting expansion of Barnett Shale development beyond its early defined field boundaries. For these reasons, Republic’s owners committed over $14 million of equity to support a new leasehold acquisition program and drilling plan focused on prospective Barnett Shale areas in and outside the traditional field boundaries.
Executing the same multi-year Barnett Shale development and divestment program as before, Republic acquired and developed a 45,000 net acre Barnett Shale asset base over approximately a two and a half year period which culminated in a second sale of its existing Barnett Shale asset position to Burlington Resources in July of 2005.
In 2007, after a review of all potential unconventional plays in the United States, it initiated a Marcellus Shale joint venture with Trans Energy, Inc., on approximately 12,000 acres in Wetzel County, West Virginia. Over the past five years, this joint venture has grown to over 30,000 net acres in northwest West Virginia with continued growth and ongoing development drilling planned in the years ahead.
Today, Republic continues to utilize its “best of breed” technical team to acquire and develop oil and gas asset portfolios in the unconventional plays throughout the United States.
Report: THE BARNETT SHALE: NOT SO SIMPLE AFTER ALL