BASA Resources Inc. is a private corporation founded in early 1989 by Michael N. Foster, Jr. and Lary D. Knowlton. The Dallas based company, with monthly production of approximately 375,000 BOE, ranks as the 23rd largest private producer of liquid hydrocarbons in the United states and among the top 20 of the more than 8,400 producers of oil in the state of Texas. BASA is one of the fastest growing oil companies in Texas, owing its 20% average annual growth in production since 1997 to its aggressive acquisition strategy. The company currently owns and operates approximately 3,400 wells located in 2 states across more than 100 different fields.
The firmís primary strategic focus since inception has been the acquisition and development of proven producing properties. BASAís corporate strategy targets the exploitation of mature properties divested by large oil and gas firms, concentrating on contrarian and niche oil and gas plays. Saddled by higher production expenses, large publicly held companies have turned to the divestment of domestic oil and gas assets as a source of capital to fund more capital intensive international and offshore programs. Prospective acquisition candidates for BASA are characterized by predictable decline curves, demonstrated stability in production, extended economic life, and recognizable upside potential. All of these factors combined with BASAís lean management and operations structure contribute to the achievement of superior risk adjusted returns. BASA, as a lean private operator, does not carry the elevated overhead of larger oil and gas companies, thus lower development and per barrel lifting costs allow BASA to realize profitability from wells that have fallen out of favor with their current owners. The simple transfer of property ownership to BASAís cost effective management and operations model has commonly resulted in a 20% to 40% reduction in the operations expense attributable to the assets.
BASA specializes in the recovery of oil and gas reserves from mature wells that require the use of special techniques known as secondary and tertiary recovery. These methods require a broad understanding of engineering, oil field mechanics, and reservoir manipulation. Increased and sustained production are most often achieved through a combination of these components. The firmís employee base has over 2.5 million man hours employed in this area of the oil field and an average of over 20 years of oil and gas experience per employee. A unique characteristic of the firmís personnel is that many of the field employees have been working on the same field for the majority of their careers and came to work for BASA when the properties were acquired.