Company Summary: Spindletop Oil & Gas Co.

Business Operations

• Primary Business Activities:

  • Exploration, development, production, and acquisition of oil and natural gas reserves.
  • Through a subsidiary, engaged in:
    • Rental of oilfield equipment.
    • Gathering and marketing of natural gas.

• Geographic Focus:

  • Mainly in Texas.
  • Operates properties in five states:
    • Texas (primary focus)
    • Oklahoma
    • New Mexico
    • Louisiana
    • Alabama

• Operational Assets:

  • Owns approximately 54,651 gross acres (10,906 net acres) under lease.
  • Majority of leases are held by production.
  • Owns and operates pipelines primarily in Texas (Fort Worth Basin), used for natural gas gathering.
  • Owns a two-story commercial office building in Dallas, Texas.

• Technologies & Practices:

  • Utilizes recent and emerging seismic and geologic technologies.
  • Focus on low-cost, high-efficiency development.
  • Conducts both operated and non-operated drilling activities.
  • Remodels existing wells to increase production and reserves.

• Growth Strategy:

  • Growth mainly through:
    • Acquiring producing properties.
    • Participating in drilling projects with other operators.
    • Selective drilling and recompletion.
    • Leasehold acreage development.
  • Restraint due to supply chain and labor shortages which increase costs.
  • Plans to continue focusing on Texas leveraging local expertise and infrastructure.

• Strategic Initiatives:

  • Long-term goal to grow production via property acquisitions, divestitures, drilling projects, and lease development.
  • Reworking existing wells when feasible.
  • On July 26, 2021, initiated a review of strategic alternatives, including potential sale, merger, or other business combinations.

Financial & Reserve Data (as of December 31, 2024)

• Oil & Gas Reserves:

  • Total proved reserves: 406,093 BOE (88% in Texas; 12% in other states).
  • Reserves are classified as:
    • 128,740 barrels of oil.
    • 1.664 billion cubic feet of natural gas.
  • All reserves are classified as proved; no probable or possible reserves are included.

• Production & Revenue (2024):

  • Net natural gas production: 1,664,000 Mcf.
  • Net oil and condensate production: 129,000 barrels.
  • Average sales price per barrel: $74.13.
  • Average natural gas price per Mcf: $2.44.
  • Production costs (per BOE): $20.94 (including taxes).

Employees & Customers

• Employees/Contractors:

  • Approximately 38 total personnel as of December 31, 2024.
    • 15 full-time employees.
    • Remainder are part-time or independent contractors.
  • Relies on key management including CEO Chris Mazzini, with no key-man insurance.

• Customers & Purchasers:

  • Sells to about 81 different purchasers/operators annually.
  • Major purchasers include:
    • Energy Transfer Crude Marketing, LLC (18% of 2024 revenue)
    • Enlink Gas Marketing, LTD. (9%)
    • Giant NRG Co., LP (7%)
    • Bedrock Energy Partners (6%)

Revenue & Income

• Specific revenue figures and net income are not provided in the summary. The report mentions revenues from oil and gas sales are market-sensitive and short-term, with no actual aggregated dollar figures given for 2024.

Additional Details

• Owns and leases a commercial office building in Dallas (approximately 46,286 sq ft, of which about 10,273 is occupied by the company).
• Owns pipelines and oilfield production equipment.
• Engages in exploration, lease acquisitions, and development activities primarily in known U.S. onshore oil and gas provinces, especially Texas.
• Does not currently hedge any commodity sales.

Note: The provided information is strictly based on the disclosed data within the report, with no projections or hypothetical details included.