The strategy of Chaparral Resources is to acquire and develop foreign oil and gas projects in emerging markets, specifically targeting fields with previously discovered reserves, which have never been commercially produced or could be materially enhanced by Chaparral’s management team and technical expertise.
Chaparral Resources was formed in 1972 as a Denver-based Rocky Mountain exploration company. Beginning in 1994, an outside group of highly experienced oil and gas executives and investors, including Peter G. Dilling, a director of the Company, took a significant ownership position in Chaparral. This group began to transform the Company into an international operator. By 1995, Chaparral’s sole focus became the development of the Karakuduk Field, a 16,900-acre oil field in the Republic of Kazakhstan. The domestic oil and gas assets of Chaparral were divested during 1996 and 1997 to help fund the development of the Karakuduk Field.
Since that time, Chaparral has grown to become one of the most active US independents currently doing business in Kazakhstan. Total estimated Karakuduk Field reserves consist of approximately 29.92 million barrels, with more than 54% being proved developed. Currently, Chaparral is in the process of identifying and evaluating other oil fields for possible acquisition and development.