Independent oil and gas investments in exploration development

FOSSIL OIL & GAS MANAGEMENT, LLC.
is an independent oil and gas company with management and consultants having over 100 years experience serving Texas and Louisiana Gulf Coast, and South and East Texas. Throughout most of 2008, the oil and gas industry had never seen higher prices for oil and gas in its 150 year existence. Oil companies were experiencing record profits. The industry appeared to be revisiting the oil boom of the early 20th century but with far greater results with Natural Gas and Condensate as an added commodity! It was a period of global demand for energy, tightening supply, lingering energy bill in our own country, and tax write off incentives in the tax code to attract capital to fund exploration and development opportunities. The opportunities were astounding through the first 3 quarters of 2008. The price of a barrel of crude oil hit a record $147.27 on 7/11/08. All this changed when the “economic crisis” caught most of us by surprise. Five years of increasing price gains for oil and natural gas was lost in five months. What we must remember is that crude oil traded at $17.85 per barrel in 2002 and by 2007 had jumped to $95.98 per barrel. Crude oil has begun its climb back up and has traded over $80 per barrel recently. Industry pundits are predicting that as the stock market recovers late 2009 and into 2010 our economy and the demand for crude oil and natural gas will do the same. The instability of the Middle East oil producing countries and the reduction of oil output by OPEC should also help prices continue to climb back up to respectable levels.

Industry economists predict worldwide consumption to be 115 million barrels of oil a day by 2030, a huge increase from current demand. World competition for fossil fuel sources will always exist, yet, big oil companies have reduced their drilling budgets from 30% in the mid-90's to under 18% today. Much of today’s world's oil has been nationalized, leaving the major USA oil companies scrambling for incredibly expensive international and deep water projects (Outer Continental Shelf – Gulf of Mexico). Thus, with the absence of the major oil companies drilling onshore, “the playing field has been leveled” and huge opportunities prevail to explore these vast onshore projects. FOSSIL OIL & GAS MANAGEMENT, LLC continues to manage its past joint venture operations.

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Industry News Updates!

01/15/10 – American Gas Association

Reported Prices – natural gas cash prices at the Henry Hub touched $7.50 per MMBtu during
the first half of January, the highest spot price since early October 2008, while forward-looking
futures contracts have been more moderate and remain under $6 per MMBtu through next
summer. Clearly, sustained cold temperatures across the country have boosted natural gas demand and the
short-term market has reacted accordingly. However, the longer market view seems to be dominated by
an outlook of supply and demand in balance, if not reflecting an optimistic view of future supply. The
Energy Information Administration’s Short Term Energy Outlook now projects an average price of $5.36
per Mcf in 2010 and $6.12 per Mcf in 2011.

Oil, the Dollar and Comparative Advantage
By John Tamny

Jan. 14 - Thanks to oil prices that have reached record levels, proponents of increased exploration in the United States have gained an upper hand in the debate over whether to drill in previously untapped areas. While it would be hard to argue against more robust exploration in the States, it should be said that some of its adherents ignore the dollar’s outsized impact on the price of oil, along with basic economic laws regarding comparative advantage and trade. Read more...

MARKET WATCH: Oil, natural gas prices fall

HOUSTON, Jan. 8 -- Energy prices dropped Jan. 7 in response to market indicators, ending a 10-session rally that had carried crude to a 52-week high in the New York futures market.

Energy prices
The February contract for benchmark US light, sweet crudes dropped 52¢ to $82.66/bbl Jan. 6 on the New York Mercantile Exchange. The March contract lost 56¢ to $83.19/bbl On the US spot market, WTI at Cushing, Okla., was down 52¢ to $82.66/bbl. Heating oil for February delivery declined 1.96¢ to $2.18/gal on NYMEX. Reformulated blend stock for oxygenate blending for the same month slipped 0.17¢ to $2.13/gal.

The February contract for natural gas gave up most of the gain that carried it above $6/MMbtu in the previous NYMEX session, dropping 20.3¢ to $5.81/MMbtu. On the US spot market, however, gas at Henry Hub, La., continued to surge, up a remarkable 94.5¢ to $7.38/MMbtu.

12/16 article MARKET WATCH: Energy prices continue resurgence
Sam Fletcher
OGJ Senior Writer

HOUSTON, Dec. 17 -- Energy prices continued to climb with crude regaining much of its loss from a 9-day downturn to close above $72/bbl Dec. 16 on the New York market on a bullish report of reduced inventories of crude and distillate fuel. Read more...

WASHINGTON, DC, Dec. 10 -- OGJ Washington Editor- Nick Snow

Global energy demand will be about 35% higher in 2030 than it was in 2005, requiring trillions of dollars of investment and a commitment to innovation and technology, ExxonMobil Corp. said in its latest long-term energy outlook.

It also forecast a natural gas supply expansion, particularly in the US, where production from unconventional reservoirs is rising rapidly. The outlook includes an assessment of how potential carbon emission policies would affect future energy demand and the fuel mix. Read more...

Is a Natural Gas Comeback in Sight

After spending some serious time on the mat this summer, natural gas prices are showing some signs of life these days. Like a phoenix rising from the ashes, prices for the fuel have turned markedly higher.

And with some forecasters predicting the "coldest winter in a decade," traders are now beginning to make big bets that wintry weather could send the down-beaten commodity even higher still.

One them is our own energy expert, Chris Nelder, whose mid-simmer natural gas forecast is looking to be spot-on of late. Read more...

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