Finding and Developing 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 and developed were not drilled.
Availability of Quality Prospects. With the sustained increase in oil prices from 2002 through late 2014, these old prospects were dusted off and made available to the independent sector of the US petroleum industry. But the financial support model for the industry had changed over the years. Institutional investors provided most of the funds for the independent sector and their focus was primarily on producing property acquisitions and development and field extension drilling, as well as oil and gas shale horizontal drilling, and much less on wildcat exploratory drilling. This provided windows of opportunity for Paradigm Exploration Company, such as our January 2014 discovery of the Beth Janis (Ellenburger) Field in our Paradise Project, Wilbarger County, Texas.
Spreading the Risk. Between 2011 and 2014 our primary focus had been on participating in exploratory prospects with the potential for very high rates of return, such as the Paradise Project, while also looking for underperforming oil properties to purchase and upgrade. We developed our own projects and participated in projects developed by independent geologists, leveraging the latest in technological advances. An example of an upgrade project is our 1,000 acres of leases and seventeen oil wells in the Bobby B Field in Knox County, Texas.
Investor Participation. Investors participate in our growth through ownership of equity in the company, thus indirectly participating in all the producing properties we acquire and properties that we drill. Since forming the Company in April 2011 we have closed several private placements aggregating $3,000,000 of our Series A Convertible Preferred Shares to 55 investors, including family limited partnerships, family offices, domestic and foreign investment companies, profit sharing plans, retirement plans, and individuals.