Sunday, August 11, 2019

Evaluation of producer strategies (Spartan Energy Corp) Assignment

Evaluation of producer strategies (Spartan Energy Corp) - Assignment Example During 2014 second quarter, the company average production stood at 6,396 boe/d which consisted of 93% oil and liquids. The production costs reduced to $ 18.23 per boe while the administrative expenses reduced to $3.11 per boe. During the same period, the company attained $24.4 million as funds from operations. During the first six months that ended in June 30, 2014, Spartan net income stood at $16,357 million. As a company that takes into consideration the interest of the stakeholders, Spartan Energy Corp has adopted the culture of using modern technology in its production facilities. For example, through the use of 3-D seismic coverage, the company is in a position to identify areas with oil and other minerals. Additionally, the company has invested in modern drilling equipments that make it to improve its operations. Through the extensive research and innovation by the company, it is targeting to achieve 15,000 boe/d in the next 24 months. As a company that deals with oil, Spartan is exposed to various risks. For example, wet weather in southeast Saskatchewan has negatively affected drilling process in that region. As a result, the company has experienced delays in drilling. To deal with the risk of weather, the company first stops to drill in such areas until it is deemed fit to drill again. In addition, the company has established wells in more areas so as to ensure its operations are not affected once wet weather is experienced in some regions. Spartan Energy Corp is concerned with various government policies. For instance, the company provides audited financial statements to its shareholders. In addition, the company has a culture of conserving the environment during its activities. In this way, it acts in line with the government environmental conservation laws. The company adopts a whistle blowing policy that ensures that accounting frauds are detected as outlined

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