A Record Year In 2011 we set a record for Oil and Gas Revenue of $20,978,953. In 2011 we:
- Added 214 new wells
- Sold a record number oil volumes, and
- Spent $8,196,000 on drilling
Your Board of Directors approved a $250 per share dividend at its March 23rd, 2012 Board meeting. Your check is enclosed.
Every Year Brings New Challenges
While 2011 set a record for revenue, gas prices in 2012 are already much lower than 2011 gas prices. One of our goals for 2012 is to increase our participation in those areas that are producing oil and gas liquids. In prior years oil sales made up only 5 to 13 percent of our revenue. In 2011 oil accounted for 23% of our revenue. Through March of 2012 oil accounted for 32% of our revenue. Hopefully, the increased revenue from oil will offset the decrease in gas prices.
Over the last three years we have entered into many leasing agreements that allow us to “look” at the results from the first well in a section before making a decision on participating in the second well. This affords us the opportunity to participate in the 2nd, 3rd, and 4th wells knowing that the first well was successful.
Your Annual Report And Proxy Statement will be mailed April 16th, 2012. Every year we ask that you read both; then fill out, sign, and return your proxy card. This year we are using an easier method for returning your proxy. If you have any questions call our office at 405-521-9685.
YOUR VOTE IS IMPORTANT Each year we have to hire an additional person to write second and sometimes third requests to shareholders to return their proxy cards. Often times we have to follow up with phone calls. If EVERYBODY returns their proxy card right away we can eliminate this unnecessary expense.
The 2012 Annual Shareholders Meeting will be held May 19th, 2012 at 10 am. at the Embassy Suites Hotel, 1815 S. Meridian, Oklahoma City, Oklahoma 73108. We look forward to seeing you there.
