Junior exploration and production (E&P) companies are most likely to be found in commodity exploration, such as oil, minerals and natural gas. They are essentially start-up or early stage corporations focused on growth.
In general, junior oil and gas operators are either developing or seeking to develop a natural resource deposit or field. A junior company will first conduct a resource study and either provide the results to shareholders or to the public at large to prove there are assets available and because developing natural resources is often a capital-intensive process. If the study provides positive results, the junior company will either raise capital or attempt to be bought out by a larger company. Basic Organizational Structure for E&P’s
- GEOLOGICAL AND GEOPHYSICAL - Is responsible for the accumulation and analysis of geological and geophysical information of the field/play/area of interest.
- LAND - Has two major functions: acquiring mineral properties, managing surface rights and maintaining records of properties owned.
DRILLING AND PRODUCTION DEPARTMENT
- DRILLING OPERATIONS – In most cases, a company will choose to contract its drilling operations to outside drilling contractors rather than own and operate its own equipment. The drilling operations department will manage and oversee the drilling process.
- PRODUCTION OPERATIONS – Again, in most cases a company will have someone manage and oversee the production processes at the corporate level and in the field. Much of the work completed in the field will be done by specialist subcontractors.
- ENHANCED RECOVERY – Is looking at tools or methods to either increase production or produce wells that can no longer produce under natural pressures.
- OIL AND GAS SALES – This group or department is focused on selling the produced product at the highest price possible. This function may be in-house or may contracted out to a third party.
- ADMINISTRATIVE DEPARTMENT •This department encompasses a variety of operational activities and functions and may consist of a number of divisions, sections, or offices.
Get to know a junior E&P company on 8020 Connect? 8020Marketplace
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