That transaction allowed the company to compete for new drilling projects in the East Texas market. Prior to that purchase, the company had focused all of its attention on South Texas, true to its name. And the company owns a fleet of 16 drilling rigs scattered throughout the state busily doing just that. Its market encompasses an area just west of Houston, along the Gulf Coast to the Rio Grande Valley. With ongoing fears in the industry that energy prices will continue to be sky high without an increase in gas exploration, both men are convinced that the company is well-positioned for even further growth opportunities.
Investors seem to agree.
Not always rosy The future hasn't always been as bright for the company. Like many oil and gas services companies, as well as producers, the last three years have been volatile at best. First, the commodity price environment for oil and gas has been filled with peaks and valleys. Second, the state's oil and gas producers scaled back capital expenditures for drilling between 1998 and 1999, severely impacting land contract drillers. Little explains that South Texas Drilling was able to survive, and in fact, grow the business because the company did not tuck in its wings.