LAS VEGAS–(BUSINESS WIRE)–Major oil companies are drastically cutting capital spending plans in response to continued low crude prices, and that news plays right into the hands of First Titan Corp. (OTCQB:FTTN), which is ramping up its asset acquisition program.
Crude prices are at 11-year lows. As revenues and profits fall, major oil companies are borrowing heavily to preserve dividends. They’re also slashing 2016 capital spending plans for new drilling and development, and putting assets up for sale. These cuts follow an estimated $250 billion drop in spending last year.
FTTN believes these spending cuts and asset sales open a unique window of opportunity it intends to exploit.
“We have a once-in-a-generation chance to acquire valuable assets at rock-bottom prices,” said FTTN CEO Sydney Jim. “There’s no way these assets would ever be available in normal market conditions. Now is the perfect time to build an aggressive portfolio that will lead to sustainable revenues and increased shareholder value when a recovery inevitably takes place.”
One major investment group gives credence to ideas like those proposed by FTTN. Citi Research is predicting the oil market will balance in the second half of the year. And others are forecasting today’s cuts will lead to future shortages, which FTTN says will greatly boost the value of assets bought in today’s low-price environment.
FTTN is building a competitive portfolio of oil and gas properties alongside companies such as Lucas Energy, Inc. (LEI), Earthstone Energy, Inc. (ESTE), Fieldpoint Petroleum Corp. (FPP) and Evolution Petroleum Corp. (EPM).
For more information on FTTN’s oil and gas projects, please visit www.firsttitanenergy.com.
About First Titan Corp.
First Titan Corp., through its wholly owned subsidiary, First Titan Energy, LLC, is committed to the exploration and development of oil and natural gas resources around the globe. The Company continually seeks to partner with energy developers that are pursuing innovative new methods of oil and gas extraction, including the development of new technologies, cleaner methods and unconventional resources.
Notice Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words “believes,” “expects,” “anticipate” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone’s past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.