Rooster Energy Ltd. is an integrated oil and natural gas company with an exploration and production (E&P) business and a leading downhole and subsea well intervention and plugging and abandonment (P&A) service business, i.e., the Well Services business. This combination enables Rooster to operate and manage the entire lifecycle of a well from drilling through abandonment and provides us with a significant advantage in exploiting offshore reserves in our core area of the Gulf of Mexico. Our operations are located in the state waters of Louisiana and the shallow waters of the Gulf of Mexico, mature regions that have produced since 1936.
Our E&P business consists of approximately 41 gross wells capable of producing, some of which are on leases that have been producing since the 1950s. We have several primary term leases for future exploration and our remaining leases are held by production. We believe that the quality of our leases and our field acquisition strategy reduces the development risk and promotes operating efficiencies.
The long-term strategy of Rooster is to increase its oil and gas reserves and production while keeping its finding, development and operating costs low. This strategy is implemented through drilling exploratory and development wells from an inventory of available prospects that have been evaluated for geologic and mechanical risk and future reserve potential. Our drilling program contains some high risk/high reserve potential opportunities as well as some lower risk/lower reserve potential opportunities, in order to attempt to deliver a balanced program of reserve and production growth to enhance shareholder value.
The Well Services business primarily provides P&A services in the Gulf of Mexico with 16 rigless complimentary sets of equipment, "units" or "spreads". A spread generally consists of a pump powered by a diesel engine, wireline units, cement blenders, tanks and assorted tools. Our team includes both E&P engineers (specializing in reservoir, drilling, completion, and construction) and P&A engineers (specializing in well plug and abandonment). The combined expertise of our engineers allows the Company to provide its customers with extensive technical support, exceptional safety performance and high quality customer service. Customers include many of the largest operators in the Gulf of Mexico.
In addition to working for third party customers, the Well Services business is strategic to our E&P business, as we are able to utilize the Well Services assets and employees to evaluate and acquire mature fields with exploitable upside for minimal costs. Through the utilization of our in-house P&A expertise, we are able to cost effectively manage our own asset retirement liabilities. The result of our combined businesses truly allows for a "Cradle to Grave" asset management model with enhanced efficiencies and hence profitability and value.