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If you think Texas Allied Petroleum was incepted several decades ago, you will be surprised to find out that this company, whose strong presence in the oil industry cannot be ignored, has been in business for only 6 year or so. It was incepted in November 2005 as an independent company whose main services are exploration, development and production of natural gas and oil. This privately funded company has, within this short time, diversified their production portfolios in the Texas Gulf coast and the Mid-Continent regions. Currently, TAP has production wells in Kansas, Oklahoma, Louisiana and Wyoming.

TAP is primarily focused on drilling low to mid risk opportunities in the range of 1,000s to 10,000s. Earlier on, during its start-up the company was solely focused on natural gas exploration. However, this lasted for about three years, until 2008 when natural gas prices rose and led to a long and steady decline in demand. This led to the companies shift in focus even though there was – and still is – some economic shallow natural gas drilling and production opportunities.

Currently, Texas Allied Petroleum is focused on producing a 50/50 mixture of gas and oil, which is expected to create a more consistent stream of revenue.  It has been so successful in shallow natural gas exploration, to the extent of being able to acquire new assets as an avenue for the company’s growth.

To increase the company’s ROI, TPA focuses on fields with considerable work-over potential, in addition to acquiring assets with drillable PUD locations. Furthermore, these assets decrease the company’s lease acquisition costs and increase their drillable inventory; consequently, they give the company immediate cash flows. They used assets such as the 3D seismic technology to acquire new reserves, and although it is not 100% accurate, the device has seen the company achieving results in line with set standards.