Granite’s founding management team and Board of Directors developed the Company’s business model based on the nature of the Alberta Bakken oil reservoir at Ferguson, Granite’s primary asset. It is a technically-driven rather than a financially-driven model. Its key objectives and how they are achieved are described in the table below.
|Maximize recoverable proportion of the pool’s oil-in-place over the long term.||Responsible reservoir management.|
|Capital-efficient development.||Continued innovation of drilling and completions technologies and build out of the enhanced oil recovery (EOR) program based on gas reinjection.|
|Maintain and modestly grow pool’s overall production.||Low annual capital expenditures for additional producing wells, gas reinjection wells, water injection wells and various EOR enhancements.|
|Generate free cash flow at current commodity prices.||Focus on steady production plus affordable growth rather than high-rate production growth or costly acquisitions of additional producing assets.|
All of these support Granite’s ability to generate an attractive, sustainable dividend.