General Questions
Q: Who is Ausam Energy Corporation?
A: Ausam Energy Corporation (Ausam Energy), TSX Venture Exchange, is a Calgary-based resource company developing and exploring for oil and natural gas onshore Australia. Ausam Energy is the surviving entity from a reverse takeover of TSX Venture Exchange listed Northlinks Limited by Ausam Resources PTY Ltd.
Ausam Energy is engaged in oil and natural gas exploration and development in the United States as well as Australia. Ausam Energy has acquired an attractive prospect portfolio with a diversity of play types, risk profiles, and prospect sizes.
Q: Where is Ausam Energy Corporation located?
A: Ausam Energy's head office is located in Calgary, Alberta, Canada. Ausam Energy's operations are based in Houston, Texas and Brisbane, Queensland, Australia.
Investor Relations Questions
Q: Why has Ausam Energy decided to locate in Canada and list publicly on the TSX Venture Exchange?
A: Ausam Energy was seeking to list on a reputable exchange. The TSX Venture Exchange has hundreds of junior oil and gas companies and has garnered significant attention allowing access to capital markets. Many companies have progressed to more senior listings in Canada and elsewhere in the world as the scale of their operations and their capital requirements have grown.
Q: What is underbalanced drilling and what is its advantage?
A: Underbalanced drilling is a method of drilling which reduces the hydrostatic pressure of the drilling fluid so that the pressure in the wellbore is less than the pressure of the formation.
This technique minimizes formation invasion related problems and associated formation damage. It has proven to be particularly useful for lower porosity/permeability reservoirs and those with significant clay content. With many of the hydrocarbons found today in existing fields with diminished pressure, or in complex and low quality reservoirs, the use of underbalanced drilling is improving well productivity and increasing recoverable reserves.
Q: What is Ausam Energy's exploration strategy - short term and long term?
A: Ausam Energy's short term strategy is to drill its lower-risk prospects in the United States portfolio in order to establish cash flow. We intend to farm out a portion of our interests in these prospects or trade for interests in other prospects in order to decrease the overall risk in our portfolio.
Over the long term, Ausam Energy will develop its larger, more exploratory prospects. In addition to the acquisition of additional prospects in its core areas of operation, Ausam Energy will pursue growth opportunities by way of asset acquisitions and corporate transactions as such opportunities develop.
Q: What are some of the challenges involved in developing your short term and long term opportunities?
A: Short term the focus will be on efficient and effective exploitation of our United States opportunities. We are a small company, and in order to aggressively exploit our portfolio we will not be able to operate all of our wells. Long term, our key challenge will be to steadily grow our natural gas production, inventory of opportunities, and reserve base. Another challenge will be to secure the right partner(s) for our exploration blocks outside of the company's core area. Ausam Energy's core properties are located near transport and processing infrastructure, allowing ready sales of any oil or gas that we discover.