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President's Letter
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Arrowhead Energy, Inc. was founded in 1980 by William F.Varner following his successful tenure of several years with J.L. Thomas Engineering, Inc.
Arrowhead Energy embraced the new millennium with the understanding that it represented a period of unparalleled opportunity in the petroleum industry. Having survived an almost ten year "recession" without too many scars and bruises our future looks brighter than ever.
The substantial price increase in oil and natural gas (hydrocarbons) sold to purchasers has been a major boom to the drilling and operation of new and old wells. The environment for oil and gas development and investing is more lucrative now than any time in recent years. The conservative and established oil operators and investors who have arrived at this juncture in a solvent capital position will take advantage of these opportunities and quietly reap prodigious rewards. Arrowhead Energy intends to pursue that exact course of action.
The favorable economic climate and consequent course of controlled expansion has allowed Arrowhead Energy to evolve into a totally efficient vehicle for oil and gas operations. We have now conscientiously reached a level of geological and engineering expertise which, coupled with our streamlined promotion policy and cost effective administration procedures, allows us to internally generate, drill, and operate prospects within optimum cost restraints. This efficiency is paramount for achieving our company's and our investing partners' goals. Our current prospect selection is concentrated in lower risk developmental sites which provide immediate cash flow and substantial long term reserves.
Oil and gas potential is favorable, providing flexibility in ever changing markets. Oil prospects currently afford a solid, curtailment free market with negligible marketing delay. Gas prospects are selectively screened in terms of pipeline accessibility, contract and market assurance, and ultimately, recoverable reserves.
Additionally, Arrowhead employs geological and geographical diversification to attain the necessary balance for our drilling programs. Optimum risk management is exercised through participation in tests of varying depth, geological purpose, and areas of interest. The result is a balance providing insulation for the company and its partners from dependence on the success of any single prospect.
Arrowhead Energy, building on its conservative and successful beginnings, presently plans to drill and operate as many wells that are effectively possible along with buying and operating existing production to build a maximum reserve base for Arrowhead and participating partners. We confidentially expect these drilling and production prospects to comprise the best combination of risk, financial outlay, and potential return attainable today; and we look forward to a future spearheaded by an entirely favorable market.
As a business premise, quality prospects will be made available to our partners on the most cost effective basis and at the highest deliverable net revenue interests, for the bright future of Arrowhead Energy lies manifestly in the production of oil and gas.
Sincerely,
William F. Varner,
President
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