RENO, NV--(MARKET WIRE)--Apr 3, 2009 -- Galloway Energy Inc. (Other OTC:GWGI.PK - News) ("Galloway" or the "Company") is pleased to announce key elements of its strategic plans aimed at developing sustainable growth during fiscal 2009.
In a recent study from Cambridge Energy Research Associates (CERA), the authors conclude that the equivalent of about 7.6 million barrels per day (mbd) out of a total potential future net growth of 14.5 mbd from 2009 to 2014 is "at risk." They base this assertion due to the collapse in oil prices potentially cutting the growth of future oil supply in half from what would have been anticipated during the high price period. Slower growth in oil production capacity could lead to the next period of rising oil prices, but much depends on the recovery of world oil demand.
For the large players this economic condition may well lead to a period of mergers and acquisitions and a reduction in overall activity. This leaves the junior E&P companies with a significant opportunity -- it's time to acquire a mixed portfolio of undervalued assets and to quickly identify, target and develop plans for future production which will be able to effectively exploit the increased demand that many large players may be unable to accommodate should the demand increase quickly due to a resurging economy.
Some fundamentals have been adjusted, but still hold true overall. The planet's population is expected to grow by 50 percent to nine billion by sometime in the middle of the century. They will require housing and place new demands on energy consumption. The number of cars and trucks is projected to nearly double in 30 years to over two billion vehicles as developing nations rapidly modernize. And twice as many passenger jetliners, over 36,000, could be in the skies within the next 20 years.
These factors demand a lot more oil and natural gas with some predictions showing global oil consumption increasing as much as 35 percent by the year 2030. Overall, producers will somehow have to find and pump the equivalent of an additional 11 billion barrels of oil every year. And this demand is growing even now.
With this strategic setting as a backdrop, Galloway proposes to move ahead with plans to: a. participate in suitably opportunistic joint venture programs across the energy sector, b. identify and acquire exploitable assets within the oil & gas sector in order to develop a properly diversified portfolio, and c. work with other key industry players to identify trend opportunities and further develop our vision to transform our innate small-scale flexibility as a junior entity into tangible results for our stakeholders and investors.
Company President Shane Lowry states, "In today's market, investment decisions are increasingly based on expectations about future value. Of course price expectations have to be weighed against upstream development costs. However, we believe that even as prices may remain low for a period of time they are still highly volatile. The resultant cutbacks in production due to low pricing and uncertainty could certainly cause an extraordinary opportunity in the foreseeable future as the economy recovers. The indicators are abundant and a small company such as ours is very strategically positioned to profit under these circumstances."
Galloway currently holds a 10% working interest in two natural gas plays situated in a prolific gas-producing area of California's Central Valley. The projects clearly meet the Company's strategy of high-value and reasonable risk offering a combined potential of over 50 BCF gas with a net of 5 BCF to Galloway. Should the efforts in California prove commercially viable, this would enable the Company to become a "near-term" producer of natural gas late in the 2009 calendar year.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our energy properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
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