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”).
The Company’s activities include development and exploratory drilling.
Our strategy is to develop a balanced portfolio of drilling prospects that includes
lower risk wells with a high probability of success and higher risk wells with
greater economic potential. Based upon the results of horizontal wells drilled
by us and other offsetting operators and historical vertical well performance,
we decided in 2016 to reduce the number of vertical wells in our drilling program
and drill more horizontal wells. We believe horizontal development of our resource
base will provide the opportunity to improve returns relative to vertical drilling
by accessing a larger base of reserves in target zones with a lateral wellbore.
Maintaining a strong balance sheet and ample liquidity are key components of
our business strategy. For 2017, we will continue our focus on preserving financial
flexibility and ample liquidity as we manage the risks facing our industry.
Our 2017 capital budget is reflective of decreased commodity prices and has
been established based on an expectation of available cash flows, with any cash
flow deficiencies expected to be funded by borrowings under our revolving credit
facility. As we have done historically to preserve or enhance liquidity we may
adjust our capital program throughout the year, divest non-strategic assets,
or enter into strategic joint ventures. We are actively in discussions with
financial partners for funding to develop our asset base and, if required, pay
down our revolving credit facility should our borrowing base become limited
due to the deterioration of commodity prices.
In accordance with SEC rules governing the scheduling of the drilling of PUD
reserves we have only included in our yearend reserve report, the 18 PUD locations
for which we have an Authorization for Expenditure (AFE) and a definitive plan
to drill.
Our operations are conducted through our principal offices in Houston, Texas,
and district offices in Houston and Midland, Texas, Oklahoma City, Oklahoma,
and Charleston, West Virginia. We currently operate 1,513 wells, 311 through
the Houston office, 366 through the Midland office, 359 through the Oklahoma
City office and 477 through the Charleston, West Virginia office. Substantially
all of the wells we operate are wells in which we have an interest.
We operate wells pursuant to operating agreements which govern the relationship
between us, as operator, and the other owners of working interests in the properties,
including the Partnerships, Trusts and joint venture participants. For each
operated well, we receive monthly fees that are competitive in the areas of
operations and we also are reimbursed for expenses incurred in connection with
well operations.
0.54% 
178.93 %