business strategies

WestFire’s primary goal is to build asset value beginning with strategic acquisitions. The Company looks for acquisition candidates offering exploitation and exploration potential. The acquisitions can be in the form of buyouts of corporations or the direct acquisition of producing properties. The ideal acquisition has a high working interest and operatorship, with large reserves in place and low recoveries to date. The Company will work to enhance value through increased recovery by infill drilling, applying new geophysical and horizontal drilling technology or employing secondary recovery techniques such as waterfloods. In addition, the Company will conduct exploration on a selective basis while focusing on building production and cash flow.

Before significant capital is expended, a detailed and thorough technical and economic analysis of each prospect will be performed. WestFire’s plan is to be patient and selective, acting on opportunities that demonstrate the potential for superior returns on capital expended. With this approach, WestFire intends to maximize its capital efficiency and thereby achieve low finding and development costs and a high recycle ratio (defined as the field netback per boe divided by finding and development costs per boe).