Strategic Metrics

Termo Drilling Activity

By Type & Outcome 2011
Operated & Non-Operated Wells

Exploratory Crude Oil 15%
Exploratory Natural Gas 8%
Development Crude Oil 38%
Development Natural Gas 38%


Our exploration strategy focuses on organic growth through the drill bit. We continue to focus our efforts on discovering and developing reserves close to our current operating areas, especially those amenable to 3-D seismic imaging. Through better analysis, we are able to lower our dry hole rate and increase the likelihood of success. Our goal is to build a multi-year inventory of drillable projects, helping to ensure a steady stream of activity and growth.

Capital Expenditure

By State in 2012
Measured in $M

California 12,055
Colorado 2,000
Louisiana 4,129
Montana & North Dakota 240
Oklahoma & Texas 702
Wyoming 115
Total $ 19,241

By Type in 2012
Measured in $M

Acquisition (Including Leasing) 200
Exploratory Drilling 8,915
Development Drilling 7,090
Optimization (Workover, Recomplete) 2,733
Other 303
Total $ 19,241
Acquisition (Including Leasing) 90
Exploratory Drilling 3,909
Development Drilling 6,650
Optimization (Workover, Recomplete) 1,103
Other 303
Total $ 12,055
Acquisition (Including Leasing) 0
Exploratory Drilling 2,000
Development Drilling 0
Optimization (Workover, Recomplete) 0
Other 0
Total $ 2,000
Acquisition (Including Leasing) 110
Exploratory Drilling 2,504
Development Drilling 0
Optimization (Workover, Recomplete) 1,515
Other 0
Total $ 4,129
Acquisition (Including Leasing) 0
Exploratory Drilling 0
Development Drilling 240
Optimization (Workover, Recomplete) 0
Other 0
Total $ 240
Acquisition (Including Leasing) 0
Exploratory Drilling 502
Development Drilling 200
Optimization (Workover, Recomplete) 0
Other 0
Total $ 702
Acquisition (Including Leasing) 0
Exploratory Drilling 0
Development Drilling 0
Optimization (Workover, Recomplete) 115
Other 0
Total $ 115


  • Acquisition
  • Exploratory Drilling
  • Development Drilling
  • Optimization
  • Other

TOTAL Measured in $M


    We frequently review prospects for possible investment near our core operating areas, both working interests and property, that have multiple wells, offer step-out or in-fill development opportunities, and would benefit from operational enhancements. We actively pursue interest ownership consolidation, acquiring additional interests in existing properties as they become available from other non-operating working interest owners.

    Termo’s Cost Breakdown

    Percentage Per BOE of Operated Production in 2010
    Average per barrel price of $72.50 and per MCF of $4.40. Values are averaged for nation-wide production.

    Royalties 18%
    Taxes, Excluding Corporate 10%
    Marketing, Gathering, Transport 2%
    Operations, Repairs, Service Rigs, Etc. 16%
    Land and Lease Obligations 1%
    Administration, Overhead, Labor 9%
    Regulatory Compliance 4%
    Abandonment Reserve 2%
    Total 62%
    Profit 38%

    In other words, 62% of a Barrel of Oil Equivalent Production goes to the above factors, leaving 38% for profit.


    We increase reserves production by developing and improving existing wells. Through internal geologic, technical, and economic reviews, and by implementing advanced downhole technology, we are able to improve production capabilities of existing properties at a reasonable cost. We regularly review our older properties to see if newer methods will improve production. We center our efforts on recompletions, stimulations, and operational efficiencies as well as working candidate idle and shut-in wells.

    Through our strategic exploration and acquisition models in California, Wyoming, and Louisiana, we have a history of steady growth and a promising future ahead.