Hard Rock Exploration, Inc. (“Hard Rock”), founded in 2003, is an independent oil and gas development company headquartered in Charleston, West Virginia. With a dedicated team of 18 full time employees, Hard Rock has expanded from drilling five wells in 2003 to over 335 wells from 2004 through 2011. Hard Rock’s main prospects, Amber Bank and Blue Jacket, span approximately 73,000 acres across 6 counties in southwestern West Virginia. Hard Rock has a 95% well completion success rate, and has constructed over 230 miles of pipeline infrastructure. In addition, the purchase of firm transportation pipeline capacity through three major sales points enables Hard Rock to efficiently move its natural gas volumes to market, limiting shut in consequences to investors.
Appalachian Basin natural gas results in higher premiums than other regions of the country. Hard Rock’s two core prospects are located in the Appalachian Basin, with many of the wells targeting the Lower Huron section of the Devonian Shale, a rich organic rock proven to produce high energy content natural gas. These wells produce high quality gas resulting in sales premiums between 14% and 24% over normal pipeline quality gas. The proximity of Hard Rock’s Prospects to major east coast markets generates premiums above spot prices. Through negotiated end-user contracts, Hard Rock hedges a percentage of its gas to help stabilize gas prices in a challenging economic environment. Investors benefit from a long term monthly cash flow from Appalachian Basin wells that have a production life exceeding thirty years.
Appalachian Basin natural gas results in higher premiums than other regions of the country. Hard Rock’s two core prospects are located in the Appalachian Basin, with many of the wells targeting the Lower Huron section of the Devonian Shale, a rich organic rock proven to produce high energy content natural gas. These wells produce high quality gas resulting in sales premiums between 14% and 24% over normal pipeline quality gas. The proximity of Hard Rock’s Prospects to major east coast markets generates premiums above spot prices. Through negotiated end-user contracts, Hard Rock hedges a percentage of its gas to help stabilize gas prices in a challenging economic environment. Investors benefit from a long term monthly cash flow from Appalachian Basin wells that have a production life exceeding thirty years.