Aspect's initial strategy was to be first mover with 3D seismic technology for exploration in numerous low cost US oil and gas plays.
Raised $3 million for pioneering 3D seismic and to drill in 10+ plays in US onshore. Invested in Geographix, the small but leading PC-based geological mapping software company. The three original LP’s included Clark Estates led by CIO Kevin Moore.
After selling Geographix to Landmark Graphic, Cranberg reinvested the proceeds and with Clark Estates funded $5 million for a new partnership devoted mostly to East Texas Cotton Valley Reef and Gulf Coast exploration.
Invested in Hugh Harvey and Bob Jornayvaz's Intrepid Oil and Gas to develop the Cane Creek oil shale in Utah's Paradox Basin.
From this point on, all Aspect activity funded by internal cash flow and industry partners. Sold Cotton Valley Reef play to Sonat for $50 million+. Reinvested primarily in Gulf Coast onshore 3D exploration.
Concentration on Frio/Vicksburg/Yegua, with special emphasis on Frio Hackberry play. Aspect invested $320 million to participate in 430 internally generated prospects with a 63% success rate. Developed more than 600 BCF of reserves, 2005 revenues exceeded $150 million. In 2006 Aspect owned rights to 12,000 square miles of 3D seismic data and had exclusive access to 3500 square miles acquired by it at an investment (including industry partners) of $300 million. On a total equity investment of $29 million Aspect (using reinvested cash flow) generated a total return of 14.3x and 39% IRR.
Quantum invested $10 million for 14% of Aspect. In 1999 Aspect participated in 67 prospects and 47 discoveries, operating 20 of those wells.
Aspect participated in 73 prospects and 41 discoveries. Evaluated projects in Chile, Argentina Australia, Indonesia, Tunisia, China, New Zealand and Venezuela. Intrepid Oil and Gas formed Intrepid Mining to acquire potash facilities initially in its Utah area of oil operations. Intrepid would become the largest US potash producer acquiring and improving facilities with innovative techniques in Utah, Nevada and New Mexico.
Aspect participated in 54 prospects and 35 discoveries. At end of year Aspect sold most of its producing assets and a 50% share of its exploration program to Samedan Oil Corp. Quantum interest in Aspect reacquired for $23 million providing a 33% IRR and 2.3 multiple to Quantum. Aspect and affiliate CHx continued to back other entrepreneurs including John Calaway (Superior Renewable Energy, to develop of wind energy), Michael Johnson of Esenjay Exploration (Middle Gulf Coast exploration) and Bud Brigham of Brigham Exploration.
Aspect participated in 41 prospects and 23 discoveries. It also added 3132 square miles of industry seismic data and shot 111 square miles of new exclusive data. Aspect affiliate CHx acquired a 40% interest in a 463,000 acre exploration license in Belize. No oil had yet been discovered in the country despite 50 years of unsuccessful exploration effort. Superior Renewable Energy initiated its first wind turbine projects.
Aspect participated in 44 wells and 30 discoveries, also adding 1600 square miles of industry seismic data and acquired 186 square miles of exclusive data.
Acquired 89% interest in Hungarian Horizon Energy to form partnership with pioneering Hungarian/American oilwoman Ibolya Ernyey. Gulf Coast 3D seismic exploration business model applied to similar geology in Hungary. HHE acquired 2D and 3D seismic data as well as applied for additional licenses. CHx/BNE used Aspect affiliate Ascend Geo's innovative wireless seismic data acquisition system in the Belize jungle successfully acquiring 200 km of data in very difficult terrain. Invested in new license opportunities in Argentina and Peru. Participated in 44 Gulf Coast wells with 30 discoveries.
Invested in start-up of Aspect/Abundant Shale to develop shale gas plays in Texas, Arkansas, Pennsylvania and New York, backing former Aspect exec Paul Favret. First-ever oilfield in Belize, Spanish Lookout Field discovered by CHx/BNE on first attempt. 5000 B/D, 15 million bbl oil field boosted Belize GDP by 10% at its peak. Increased Hungarian acreage position to over 5 million acres. Superior Renewable Energy developed 140 MW of wind power including the first-ever commercial facility on an Indian reservation. It also had 500 MW of facilities in development in Texas, South Dakota, California, New Mexico and Hawaii.
Two successful development wells in Peru's Maranon jungle, confirmation wells and initial commercial production within one year of discovery in Belize, first exploration wells drilled in Hungary based on US Gulf Coast model (all 3 discoveries). Aspect/Abundant drilled and completed first 12 horizontal shale wells. Aspect share of Superior Renewable Energy sold for $25 million. Intrepid Mining profitably built to 650 employees and $250 million in revenues; Aspect sold its interest at year-end for >$100 million. Business development efforts in Kurdistan, Afghanistan, Italy, Netherlands and Libya.
Quantum Energy Partners invested $89 million in Aspect business outside of Gulf Coast. Atrush Production Sharing Agreement signed with Kurdish Regional Government. Acoustic Geophysical Services stayed busy for HHE and other customers with two state-of-the-art digital seismic crews.
Three major sales transactions totaling $413 million, with over $220 million in gains for Aspect and its internal partners. Central European Drilling established to work for HHE and third parties with two modern drilling rigs. CED set high standards of performance in Hungary including new drill time records. Also HHE had by 2008 shot 3000 square km out of the total 4000 square km of 3D seismic ever shot in Hungary.
HHE participated in 37 exploration wells of which 21 were discoveries, finding approximately 100 BCF of high value reserves. The Nyekpuzsta #1 will was drilled which discovered ultra high pressure unconventional oil and gas zone with giant potential but exceptionally difficult and costly drilling conditions.
Shamaran paid $10 million and invested $35 million for 33.5% interest in Aspect's Kurdish assets. Atrush well drilled and completed for $27 million: despite difficult drilling conditions this was lowest cost such well to date in Kurdistan.
Atrush 1 flowed at 6393 BOPD from 3 horizons. Hungarian EBITDA exceeded $100 million, company produced 20% of all Hungarian gas production.
Atrush 2 tested from 3 zones at combined rates of over 42,000 B/D. Acoustic Geophysical and Central European Drilling sold to Viking at profit and continue to provide quality, low cost services in Hungary. Aspect's interest in Atrush sold to Taqa, the Abu Dhabi National Energy Company.
Completed Kurdistan transition, drilled Gyulavari well to extend Hungarian high pressure unconventional oil and gas province.
Acquired Quantum Energy Partners, Hungarian management and Hexagon interests in Aspect affiliates. Backed entrepreneurs pursuing mineral and non-operated working interest strategies in select US shale plays. These were William Brinkerhoff (American Minerals) and Luis Rodriguez (Raisa Energy), Mackie Cannon and Scott Rigter (Onemap Minerals). Successfully bid on two new exploration licenses.
Sale of original Devavanya license and gas plant to OGD in Hungary as Aspect shifted its emphasis from its previous shallow gas “bright spot” strategy.
Pettend Field discovered in Western Hungary. Pettend, at 40+ MMBO would become the largest new oil field discovered in Hungary in the past 50 years.
In Hungary and the U.S, Aspect shot new 3D seismic data and drilled 6 successful development wells and 6 exploration wells, (with 3 discoveries in Hungary and 1 in the U.S.). New business initiatives were formed in Ukraine, Mexico, Slovakia, and Poland. Onemap raised $210 million to acquire mineral interests in the Permian Basin. In the U.S. Gulf Coast, the Vicksburg Edgar R Maxey discovery produced 20 MMCFPD though Aspect’s assessment of Gulf Coast maturity resulted in its exit from ongoing new prospecting there. Initial investment made in Sila Technologies, developer of silicon anode battery materials.
Aspect moved to a new office space located at 1601 Wewatta St in Denver. Pettend development continued with a 100% success rate. Additionally, a pipeline was constructed to transport Pettend oil to the Adria Pipeline.
Initial investment made in Sporos BioDiscovery LLC, an oncology drug discovery company established to advance technology licensed from MD Anderson Hospital.
Conducted new 3D seismic surveys in Croatia. A 50/50 partnership was initiated with Nafta of Slovakia, through which Nafta committed $14 million to exploration expenditures at the Dravapolkanya license. Additionally, an initial investment was made in fusion energy developer Horne Technology.
At its first exploration attempt, the Aspect/Nafta JV discovered the 10 MMBOE Sellye Field. Following this discovery, Aspect drilled four successful development wells. Aspect and MVM (Hungary’s electricity producer and largest company) joined to advance the Corvinus unconventional resource project. The JV then successfully drilled and tested the Nyekpuszta 6 well to confirm Aspect’s initial work on what may become Hungary’s largest oil and gas field. Initial investment made to back Ray Karam in HiTS (High Temperature Superconductors, Inc), a California-based manufacturer of superconductor wire.
Initiated production at the Sellye field. Aspect continued its development activity including drilling two additional successful Corvinus wells further confirming the potential of this unconventional resource play.
Drilled first 3 exploration wells in Croatia with 100% success ratio. Drilled successful development wells in existing shallow fields and made 2 new field discoveries. Further extension drilling of 3 new wells at Corvinus identified new deeper productive zones and enhanced results from well stimulation technology. The Corvinus processing facility and pipeline completed and began production operations. New banking facilities for Hungary and a substantial sale of Onemap assets support record capital expenditure plans. Aspect’s first real estate investment include a majority interest in the One Ocean Hotel in Atlantic Beach, Florida.
