Black Elk attracts investors through successful explorations

Asian investors have been an increasing source of capital for oil and gas companies in the United States, particularly those domiciled in Houston, Texas, touted as "the energy capital of the world". Black Elk Energy is tapping into this growing trend by highlighting its distinct business model, innovative acquisition and exploration techniques, and seasoned management team. One of more than 5,000 energy-related firms based in Houston, it seeks to draw in potential investors who aim to capitalise on Texas' strength in the oil and gas game.

"Black Elk is opportunity-rich, and we're looking for capital partners to come in and explore these opportunities with us," says John Hoffman, president and CEO.

Hoffman, an industry veteran with more than 30 years of extensive experience in field development and operations, laid the groundwork for Black Elk in 2007. Through its distinct "buy, shine and sell" strategy, the company has built a geographically diverse asset portfolio, comprising interests in more than 108,000 gross hectares within the outer continental shelf of the US Gulf of Mexico. As of December last year, Black Elk has estimated proven, probable and possible reserves of 54.3 million barrels of oil equivalent, with total present value at 10 per cent discount of US$1.3 billion.

Black Elk focuses on acquiring and exploiting undercapitalised assets, which get shined up through drilling, workover, recompletion and other lower-risk development projects to boost reserves and production. The company then evaluates the potential sale of these assets to optimise its portfolio with the ultimate aim of delivering high returns to its investors and stakeholders in two to three years.

"The streamlined nature of how we operate allows us to move quickly and see opportunities that others missed," Hoffman says. "That first-mover agility really distinguishes us from the competition. We will rely on these strengths and our people's vast industry expertise and proven track record to propel our venture into international locations in the next three to five years."