HEI Resources, Inc

HEI Resources was founded in 1997 by Mr. Reed Cagle for the acquisition, exploration and development of domestic oil and gas reserves. Operations span from the gas rich counties of South Texas to the Black Warrior Basin of Mississippi and Alabama. Having drilled more than 80 oil and gas wells through private Joint Venture funding, HEI Resources continues a tradition of excellence, placing priority on creating value for its partners.  Mr. Reed Cagle is President & Chief Executive Officer of HEI Resources. His oil and gas career began more than 20 years ago, as he worked his way up through the management ranks of independent oil and gas companies.  Upon founding HEI Resources in 1997, he consolidated his experience into steady growth of the company through acreage acquisitions from Alabama to South Texas. He spends his free time involved in local charities and enjoying the outdoors with his family.

About Oil & Gas

Oil and natural gas demand worldwide has been growing steadily the last few years.  With many electrical power plants now being fired by natural gas this has put a particularly heavy domestic demand on that commodity.  Unfortunately United States natural gas producing capacity is declining along with our natural gas reserve base.  Despite record drilling activity, especially in the gas rich Gulf Coast Trend in Texas, drilling and completions has not replaced production.  In addition, the off-shore rigs in the Gulf of Mexico have declined from 148 in 2001 to about 90 currently.  Much of that exodus is due to Katrina and Rita in 2005 as well as more lucrative, shallower projects worldwide.  This will have a direct impact on natural gas production and prices because most of the rigs moving were drilling for natural gas.  The Energy Information Administration, a government agency that tracks data on the industry, predicts that natural gas prices will climb to $10/mcf by 2007.  With the advent of new technology many deeper objectives are more clearly defined prior to drilling.  Many of these objectives are currently not being drilled because these leases are being held by low producing wells from shallower formations.  Over the next few years more of these opportunities will present themselves providing a much lower risk than before, and some very attractive untapped formations.