There are three functional groups within the company and two investor/partners that the Company seamlessly integrates, works with and services as seen below. Successful execution of the company’s business strategy is based on four components: Evaluation, Selection, Manage, and Communication.
This process begins with the Evaluation of potential projects in which Monarch might participate. This is a very time consuming and tedious process, sometimes involving years of technical work (mapping, etc.), due diligence and negotiations. Because of Monarch’s high standards, scores of potential projects are typically reviewed before any single selection is made. Selections are made not only on the merits of a particular project, but on its fit with the risk profile Monarch is attempting to maintain. Manage is defined as the coordination of department functions to stream line information flow. It is the job of Operations to directly engage and/or facilitate the field operations. Additionally, it is the job of Operations to communicate to the investment community regarding the status of the projects in which the company participates.
In the middle of the Company’s operations is its S.A.F.E.R. methodology and process that is described below:
Solutions
The Company’s goal is to provide energy solutions for the United States, by making our nation less dependent on foreign sources of oil and gas, and profit solutions for its investor/partners. To that end, Monarch diversifies production, development and exploratory oil and gas investment opportunities to include multi-field and multi-zone prospects where possible, packaged on a turnkey basis. The company feels that this is a way in which they can diversify risk by distributing it first across wide geographic areas and second, where possible, to drill individual wells with multi-zone potential.
Accountability
In order to maintain a flexible and nimble environment the company must have a high level of accountability internally as a team, and externally as a company responsible to its investor/partners. Monarch's ultimate accountability is to its investor/partners: to strictly adhere to its investment model and business strategy, to best maximize returns and reduce risk.
Feasibility
To be feasible, a project must meet several criteria: (1) Schematically, the project must fit into the Company's 50-30-20 diversification model, (2) The project must afford the Comany and its investor-partners an excellent chance of producing oil and gas in commercial quantities. Each prospect must satisfy the Company's stringent stands and "pass muster" with Mike Lewis, the Company's geologist. (3) The prospect must meet the time horizon that coincides with the prospect's drilling and completion schedule. And, (4) The prospect must be geographically diversified in the continental United States. Monarch will not participate in off-shore wells.
Execution
Monarch's core strength is its ability to execute its diversified drilling strategy that diminishes the risks inherent in any drilling project and simultaneously enhance the potential profits for its investor/partners. It is Monarch's thoughtful approach to its investor/partner's risk/reward ratio that truly sets Monarch apart from the competition. "Creating wealth with Investors" is more than just a corporate motto: it is a corporate culture. Monarch has chosen to be a hands-on manager that partners with larger oil companies with proven track records of operations and production. This takes the pressure off of one operator and places it on multiple operators; the model of diversification also plays into execution. Additionally, the company has an in-house operations management team which has its pulse on the activities in all of its fields and is in communications with them and then to the companies stakeholders.
Returns
Monarch provides its investor/partners with a diversified package of oil and gas prospects that include production, development and exploratory oil and gas investment opportunities in different geographical Areas, each on a different level of the risk continuum. The Company believes that by diversifying risk, it best stabilizes and ultimately enhances investment rewards for its investor/partners.