Scott, please tell our readers about Dynamic?
Dynamic is an emerging microcap company that is developing an oil well service company and enhanced oil recovery company in the IL & Appalachian Basins.
Oil Well services comprise the day to day operations that maintain oil wells in proper working order. For example, the tubing that carries oil to the surface often can develop holes. The tubing must then be pulled, tested and run back in the hole with a pulling unit. Pulling units are in high demand and often operators have to get on a waiting list to get their wells serviced.
Please explain EOR or enhanced oil recovery?
Science has shown that for every 1 barrel of oil produced there are 2 barrels still left in the ground. In the past, the technology used to get at those reserves cost too much, now with oil at $76 the incremental cost to extract this oil is justified. EOR is the use of technology such as surfactants, polymers, microbes and other chemicals to extract oil following primary recovery.
What states do you operate in?
Illinois, Indiana, Kentucky
Are you drilling new wells?
The bulk of our effort is in re-working existing wells that were abandoned, shut-in, or are underperforming. Many quality wells were abandoned or shut-in when oil was at $10. By focusing on existing wells, Dynamic seeks to mitigate exploration risk and develop immediate cash flow. We will drill 2 shallow wells in Kentucky to obtain cores for development of an advanced waterflood of our 29 well property.
What is paraffin and how do you deal with it?
Paraffin is a waxy substance that develops in oil and clogs up the inner workings of the well leading to declines or stoppage of oil production. It is estimated that approximately 40% of all wells are affected by paraffin.
Dynamic has chosen a powerful, environmentally friendly solution to this problem. Friendly bacteria or microbes are introduced to the wellbore region and feed on the paraffin. As they reduce the paraffin, the microbes excrete bio-surfactants that reduce the interfacial tension between the oil and source rock leading to an increase in production.
Dynamic is a distributor of Paragone Bio-Chemicals in the IL & Appalachian Basins.
Why should we consider your stock?
Management owns over 50% of the outstanding shares and earns the bulk of their compensation in stock, thus they are on the same side of the table as shareholders.
Dynamic is currently a debt free, producing oil company with tremendous market potential. The well service division was created to fund the blue sky potential of the exploration division.
Dynamic is focused on cash flow generation and risk reduction. Management will continue to re-work existing wells in order to avoid or mitigate exploration risk.
Dynamic will continue to be a pioneer in the use of advanced secondary and tertiary recovery methods.
Do you have any interviews we can listen to?
Yes, http://feeds.mn1.com/dynamic_natural_resources_inc_dyni.htm
Thanks for your time!
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