What started out as a risky investment into a plot of land with possible oil and gas in a remote area turned into a diversified boutique resources group with a global presence.
HISTORY OF CARRAIGMORE
INNOVATE – FOCUS – LEARN – ADAPT – REPEAT
CARRAIGMORE RESOURCES GROUP HISTORY TAKES YOU ON A JOURNEY - FROM SWITZERLAND TO THE USA.
It is a history of exploration, innovation and a pioneering spirit that still guides CRG to this day. Already in the 1980’s, while on assignment in Africa auditing resources companies, the seed of interest in natural resources in its widest sense was planted, and over 20 years later the success and experience gained in one career became the foundation of a new venture, and with a handful of Oil and Gas wells in the USA the Carraigmore Resources Group by the hands of what is today Hess Group International.
PRE 2007
Years of working with Oil & Gas companies and other major players in the resources sector was at the origin of Rolf Hess’ decision to set out and look for investment opportunities for himself and maybe some of his family and close friends. A long trip across the pond was about to take place.
EVALUATION OF POTENTIAL ENERGY INVESTMENTS
Building on the vast knowledge of resources companies, Rolf Hess travelled throughout USA looking at various opportunities to form the foundation of a solid investment. With an abundance of seemingly good opportunities, identifying the one that will really succeed took time and dedication. Every project requires desk work, but then again, one has to go into the field and see with ones own eyes what it looks like, try to understand what the reports mean to convey and make sure that the theory and the reports reflect the true situation in the field. Our founder taught us – that only by touching the ground with your own hands and seeing it with your owns eyes, can you identify a truly good opportunity.
TIME IN THE TARGET REGION
Early on, Rolf Hess understoood that when entering into a venture, far from home and outside ones comfort zone, it is important to spend time with the local people, learn the customs, and get a good picture on whether the opportunity is as good as it seems, and this meant getting dirty.
CONNECTING WITH PARTNERS
Despite the now thorough knowledge of the market and industry, it was important to forge alliances with partners that can be trusted, pursue the same goals, and live by the same values, and so – the very successful partnership with Chasel Energy and Quinex Energy was born.
2007-2010
GREEN RIVER ENERGY CORPORATION
In order to hold the initial investment, a company GREC was set up in February 2007, and thus the cornerstone for the today’s group was laid. Setting up a company in the US is easy. The legal framework has been set in order to encourage people to create their companies, develop ideas and prosper with very little red tape in the beginning. After the first steps were completed, Rolf Hess needed to think about the licenses for exploring and drilling, and hopefully, in the end, producing Oil and Gas.
FIRST INVESTMENTS IN LEASES
Once the decision was made to invest in this highly profitable, but also very volatile resource, and all the licenses were secured, a very crucial task was still to be completed, that is, identifying all the services needed from drilling to casing and finally producing, storing and transporting the resource to where it can be processed into something useful. It is in Chasel Energy and Quinex Energy that Rolf Hess found the partners needed, to connect the dots and make this first investment in Oil and Gas a long term success.
CARRAIGMORE UTAH ENERGY CORPORATION
Following the amalgamation of the Green River Oil leases into a joint venture with Newfield Exploration Company a new company, Carraigmore Utah Energy corporation was set up in September 2010 in order to acquire further Oil leases together with a group of “family and friends” as founding investors. The plan was to build a portfolio of leases with proven reserves that are however not producing yet and to purchase working interest participations in producing wells.
2011-2015
This period was truly marked by excess on both ends of the spectrum. From banks lining up to lend money, to record oil prices, to a historic oil price decay at unseen speeds, and the obvious total draught in credit availability. We survived it all, and thanks to the business principles of our Founder and Chairman, we ended up stronger than ever.
EXPAND OIL LEASE PORTFOLIO
Up until 2014, the two companies expanded their oil lease portfolio. This Joint Venture with Newfield Exploration Corporation proved to be very profitable, as oil prices were rising steadily. Being a junior partner of such a large player has its advantages. It clearly showed us how the industry works through the different cycles, not only between exploration and production, but also during different cycles in terms of pricing. How can a company add value even in difficult economic times, as we were to experience in the years 2014 to 2016. A positive balance sheet allowed the group to expand its lease portfolio when other companies were forced to downsize in order to service their obligations.
CARRAIGMORE RESOURCES GROUP IS ESTABLISHED
In 2013 the decision was taken to set up an energy holding company based in London UK. Initially, the holding just managed the two operating entities and it was not until 2017 that the group consolidated in all share transaction to create what is today Carraigmore Resources Group Ltd. Combining the different operating companies under one structure made it easier to manage and saved costs. The fundamental rule in all our projects, is to work with as little overhead costs as possible, as these costs add almost no value to the projects. As a company developing a business with our own hard earned money, but also with funds that have been entrusted to us by shareholders, we have the responsibility to apply the financial resources effectively and not waste them on non-productive luxuries.
WHAT GOES UP MUST GO DOWN
Not long after the first analysts predicted oil to reach and surpass the 200-dollar mark, and the US started to release some of their strategic reserves to alleviate the pain at the pump of the US consumer, during the upcoming summer holidays in 2014, the inevitable happened. On June 13, 2014 WTI closed at $106.91 per barrel and, apart from a 6 months consolidation early 2015 did not look back until closing at $27.45 per barrel on February 10th 2016. This was the time when our Founder and Chairman’s decision to work with close to zero overhead, and no salaries, proved to be the best decision ever.
2016-2019
Oil prices finally bottomed out, and we survived the slump unscarred, with only a couple of losing quarters. Due to the quick, and almost straight fall in oil prices, a lot of smaller, and even some bigger oil companies suffered, and this opened up new opportunities for CRG to secure additional working interest at very favorable terms.
PREPARING TO LET GO
In the summer of 2019, the board took the decision to start the final chapter as a private company, and engage advisors to prepare the company for a public listing. The process starts with narrowing down the number of exchanges in the world, to a small number that makes sense in terms of reputation, size, liquidity, and last but not least, costs. Then a team needs to work on the different options, to help us find the best for the company and its shareholders. Becoming a public and listed company, not only has a major impact on the shareholders, who after many years are able to justify the value of their investment, but also on the company, in terms of value, reputation and social responsibility.
ESTABLISH A BELIEF SYSTEM AROUND REVENUE AS THE OXYGEN THAT ALLOWS THIS COMPANY TO CONTINUE BREATHING, TO CONTINUE TO SEE ANOTHER DAY.
Marc Leibowitz