"We participate in high risk
exploratory prospects
with the potential
for very high returns."

Exploring for oil and Gas. During the 1960's and 1970's the major oil companies trained an entire generation of oil and gas explorers. Many of these geophysicists, geologists, engineers and geochemists experienced the excitement of new field discoveries throughout their careers as they progressed through majors, joined large independents and/or started their own small companies. Along the way, and due to contraction in drilling activities between 1982 and 2002, many of the technically sound prospects these scientists generated were not drilled.

Availability of Quality Prospects. With the sustained increase in oil prices over the past 8-10 years, these old prospects are now being dusted off and made available to the independent sector of the US petroleum industry. But the financial support model for the industry has changed over the years. Institutional investors provide most of the funds for the independent sector and their focus is primarily on producing property acquisitions and development and field extension drilling, and much less on wildcat exploratory drilling. This is the window of opportunity for Paradigm Exploration Company.

Spreading the Risk. Our primary focus is on participating in high-risk exploratory prospects with the potential for very high rate of return. We develop our own prospects and participate in prospects developed by others, leveraging the latest in technological advances, both as operator and as a non-operator. We spread our risk by taking smaller interests in a number of prospects, rather than larger interests in a smaller number of prospects. This means we have to source and screen 25-50 prospects for every one that we drill.

Investor Participation. Investors participate in our growth through ownership of equity in the company, thus indirectly participating in all the prospects that we drill. Direct participation is also available on an individual prospect basis for those who can take advantage of the tax benefits related to intangible drilling costs and percentage depletion deduction.