Primeenergy Resources's Business Segments

We are an independent oil and natural gas company engaged in acquiring, developing and producing oil and natural gas. We presently own producing and non-producing properties located primarily in Texas, Oklahoma, West Virginia, New Mexico, Colorado and Louisiana. All of our oil and gas properties and interests are located in the United States. Through our subsidiaries Prime Operating Company, Eastern Oil Well Service Company and EOWS Midland Company, we act as operator and provide well servicing support operations for many of the onshore oil and gas wells in which we have an interest, as well as for third parties. We have owned and operated properties in the Gulf of Mexico through our subsidiary Prime Offshore L.L.C. We are also active in the acquisition of producing oil and gas properties through joint ventures with industry partners. Our subsidiary, PrimeEnergy Management Corporation (“PEMC”), acts as the managing general partner of seven oil and gas limited partnerships (the “Partnerships”), and acts as the managing trustee of two asset and income business trusts (“the Trusts”).

Primeenergy Resources Corporation operates primarily in the oil and gas exploration and production sector. Below is a detailed description of the segments, products, and services that the corporation typically offers:

Segments

1. Oil Exploration and Production
- Onshore Exploration: Primeenergy focuses on identifying and exploring potential oil reserves in various shale plays and other onshore fields. This includes geological surveys, seismic studies, and drilling operations to discover new oil resources.
- Oil Production: Once reserves are identified, the company engages in the extraction of crude oil. This segment involves well drilling, completion, and production management to ensure efficient recovery of oil.

2. Natural Gas Exploration and Production
- Similar to their oil operations, Primeenergy also explores and produces natural gas. This segment encompasses activities related to the discovery and extraction of natural gas from various formations, particularly from shale plays.

3. Midstream Operations
- Primeenergy is involved in the transportation and storage of oil and natural gas. This segment includes:
- Pipeline Operations: Management of pipelines for transporting crude oil and natural gas from production sites to refineries and distribution centers.
- Storage Facilities: Operating storage facilities to hold produced oil and gas until they are transported to the market.

4. Environmental Services
- The company also addresses the environmental aspects of oil and gas production. This includes:
- Remediation Services: Dealing with the environmental impacts of oil spills and leaks through cleanup and remediation efforts.
- Waste Management: Management of drilling waste and produced water, ensuring compliance with environmental regulations.

Products

1. Crude Oil
- Primeenergy produces various grades of crude oil, which is sold to refiners and other buyers. The quality of crude oil can vary based on the extraction sites and methods employed.

2. Natural Gas
- The company produces both wet and dry natural gas. Wet gas includes heavier hydrocarbons, while dry gas is primarily methane. Both variants are sold to utilities, industrial customers, and for export.

3. Natural Gas Liquids (NGLs)
- In addition to natural gas, Primeenergy extracts natural gas liquids such as propane, butane, and ethane during production processes. These liquids are valuable for various industrial applications and as feedstocks in the petrochemical industry.

Services

1. Exploration Services
- Primeenergy employs advanced exploration techniques, including geological surveys, 3D seismic imaging, and data analytics to pinpoint potential drilling locations.

2. Drilling Services
- The company has expertise in drilling operations, utilizing modern drilling rigs and techniques such as horizontal drilling and hydraulic fracturing (fracking) to enhance recovery rates.

3. Production Optimization
- Primeenergy provides services to optimize existing oil and gas wells through enhanced recovery techniques and technologies to increase overall production efficiency.

4. Consulting and Advisory Services
- Offering consulting services related to oil and gas market trends, regulatory compliance, and operational efficiency within the energy sector.

5. Health, Safety, and Environmental (HSE) Services
- Implementation of HSE practices to ensure the safety of operations, employees, and the environment. This includes training programs, safety audits, and adherence to industry standards.

Conclusion

Primeenergy Resources Corporation is deeply embedded in the oil and gas sector, with a comprehensive approach that spans exploration, production, midstream services, and environmental considerations. Through its diversified operations and commitment to efficiency and safety, the company plays a significant role in oil and gas resources management.