Strengths & Strategies
 

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

OPERATIONS
We operate most of the large projects that we acquire, allowing flexibility and control over development of the fields, and thus 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, thus greatly increasing the recoverable reserves from the field 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 has proven itself as a quality independent producer with an established track record and the ability to close transactions in a timely manner.  This gives the Company significant advantages in the acquisition of oil and gas properties through the negotiated process, without the pressure of competitive bids. 

PARTNER RELATIONS

Central prides itself in maintaining close ties with its investment and property interest partners.  Periodic operations meetings are scheduled for the convenience of partners and informational bulletins are routine.  Occasional field trips are planned well in advance for those partners desiring a first-hand look at their investment and Central's quality operations.