Operating Areas

Senior Management

Calypso Track Record

  

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North American Exploration & Production

With a constant decline in the size and frequency of onshore oil discoveries in North America, oil-prone resource plays have become the primary target for exploration and development drilling. Sustained drilling activity as measured by rig utilization reflects the high rates of return offered by direct investment in exploration and production in a market where high domestic demand has driven oil prices to record highs. While the cost of finding new reserves has remained relatively stable, oil prices have risen dramatically over the past decade. Current prices generate robust operating margins that often allow producers to recover their investment within one year after bringing new wells on stream. In addition, production operations associated with unconventional resources present little threat to the environment when conducted responsibly.

 

In addition to the greatly improved economics of current exploration and production projects, the associated exploration risk in finding new reserves has dropped dramatically. State-of-the-art geophysical tools such as 3D seismic data often provide the explorationist with a means of directly detecting the presence of hydrocarbons before a well is ever drilled. Increased drilling activity in the lower 48 has resulted in a greater density of subsurface data, allowing explorationists to better constrain their structural and stratigraphic models. When combined with the improved imaging of subsurface traps and potential reservoirs, subsurface data from recent drilling has helped to lower exploration risk, offsetting the economic impact of declining reserve size per discovery.

 


Calypso Operating Regions
Calypso has focused its North American program on US oil and gas drilling projects in the established hydrocarbon provicnces of the Mid-continent and Gulf Coast areas.  Within the prolific sedimentary basins of these areas, the Company's program is directed towards drilling “exploitation” prospects; that is, prospects which are proximate or geologically analogous to established fields. Calypso does not participate in high risk, or “wildcat” projects, but allocates a portion of its capital to exploration on a risked basis, where the initial well is expected to identify a significant reservoir allowing for lower-risk development drilling. 

 

The Company participates in oil and gas projects acquired pursuant to Joint Acquisition and Development Agreements entered into by Calypso with regional operators (“Operators”).  Calypso selects its operators based on industry track records and a technical and economic evaluation of projects generated and in current inventory. The typical Operator is a private company with a team of geologists, landmen and operations experts that can deploy $10-100 million in annual capital expenditures towards their respective drilling activities.

 

With more than 30 years of exploration and production experience, Calypso management has established relationships with some of the premier oil and gas companies operating in the US today.