Strengths & Strategies

LONG-LIVED RESERVES
Central acquires properties with a history of predictable and minimal production decline rates. Our R/P ratio goal (reserves to production)  for all categories of proved reserves is a minimum of eight, while expense to revenue ratios generally do not exceed 35%.   Payout must be achieved before the half-life of the reserve base is depleted.

OPERATIONS
We operate the majority of large projects that we acquire, allowing flexibility and control over development of the fields, as well as the timing of capital expenditures. Increased efficiencies of operations is one of Central's hallmarks, whereby production can be increased and expenses decreased with little or no impact to current production.
 
DECLINE RATE REDUCTION
Great emphasis is placed on the improvement of current producing wells and the low cost return to production of shut in wells. The result is the reduction of  decline rates, which greatly increses the recoverable reserves without material capital expenditures.

WELL-DEFINED UPSIDE
Substantial future, low risk, proven development potential exists within the fields, primarily in the form of infill drilling; exploitation of behind pipe reserves and the initiation of waterfloods. This inventory of low risk locations and projects provides significant upside and additional cash flow well into the future.
 
MULTI-PAY POTENTIAL
In many cases, there is additional potential in other producing horizons above and below those currently producing. Regulations covering many of the fields allow for down hole commingling of multiple producing horizons, resulting in significant acceleration of cash flow from behind pipe completions.

FINANCIAL CONTROL
Central conducts extensive financial due diligence prior to the close of any transaction, including revenue, lease operating expenses and capital expenditures. Cost control, minimal credit and commodity risk exposure and disciplined capital expenditures are Central's constant emphasis.
 
CONTROL OF HYDROCARBON DELIVERIES
By controlling the deliveries of all volumes of hydrocarbons sold, the Company is able to make long-term commitments for itself and its partners (if desired) for future deliveries when market conditions are positive.  Hedging is implemented after careful analysis.
 
OWNERSHIP AND ENVIRONMENTAL ASSESSMENT
As a matter of course, Central performs title examinations and Phase I & II environmental audits on at least 80 percent of the value of its acquired properties, in accordance with generally accepted standards in the oil and gas industry.
 
WELL DEVELOPED INDUSTRY CONTACTS
Central’s success as an independent producer is also evident in our ability to close transactions in a timely manner. The company gains substantial advantage in its acquisition endeavors using a process of negotiation rather than competitive bidding.
 
PARTNER RELATIONS
Central maintains close ties with its investment and property interest partners.  Scheduled operations meetings and information bulletins are routine.  Occasional field trips are planned for partners desiring a first-hand look at their investment and Central's quality operations.