Since its inception in 2001, Kelly Resources, Ltd. has been involved in all aspects of the oil and gas industry. We have engaged in exploration and production to royalty and mineral acquisitions. Kelly Resources has partnered with some of the larger independents for its exploration objectives. Our acquisitions over the past few years have enabled Kelly Resources and its partners to acquire royalty and mineral acreage in the top three shale plays within the United States. Currently, we are participating in the Bakken Shale, Eagle Ford and Barnett Shale, which encompasses over 60,000 acres. Our most recent area of participation is the DJ Basin located in the Wattenberg Field in Colorado. Kelly Resources currently owns royalty interest in over 1,000 wells in this field, with the potential of an additional 3,000 wells over the next 5 to 10 years. Our alliance with some of the larger royalty and mineral companies in Colorado has enabled Kelly Resources to acquire core acreage within the prolific Wattenberg Field. While utilizing expert oil and gas professionals in Colorado, we have isolated specific areas to purchase. Kelly Resources and its partners have acquired over 40,000 acres of producing properties in 2012. We plan to continue our aggressive participation for long term cash flow and growth potential, as the shale boom is underway.
In 2013, Kelly Resources expects to acquire non-operated working interest in the Wattenberg Field. Our strategy is simple, by acquiring long term reserves through royalty and mineral acquisitions we have established our cash flow and growth potential for the next 10 to 20 years. The non-operated working interest will also provide Kelly Resources exposure to drilling side of the shale. By combining our efforts, we believe our “hedge strategy” can place Kelly Resources and its partners in a good long term position for growth as well tax reduction strategies.