Winning Strategy
The company describes its strategy as “acquire, exploit and explore” and says it uses an integrated approach to opportunities. “TriStar will pursue the internal generation of exploration plays that have medium risk and multi-zone potential,” the company says.

“TriStar intends to maintain a balance between exploration, exploitation and development drilling for oil and gas reserves, although management of TriStar will also consider asset and corporate acquisition opportunities that meet TriStar’s business parameters,” it continues. “To achieve sustainable and profitable growth, management of TriStar believes in controlling the timing and costs of its projects wherever possible,” it adds. “Accordingly, TriStar will seek to become the operator of its properties to the greatest extent possible. Further, to minimize competition within its geographic areas of interest, TriStar will strive to maximize its working interest ownership in its properties where reasonably possible.

“Management of TriStar has extensive industry experience in producing areas in western Canada and has the capability to expand the scope of its activities as opportunities arise,” the company says.

Challenging Costs
Zabinsky says the biggest challenge for TriStar in developing the Bakken and other holdings has been dealing with the fluctuating nature of operating costs. “Cost control is always an issue in Canada,” he says. “Service costs experienced significant increases in 2006 but have recently started to come back into line.”

However, the fluctuations have also proven at times to be beneficial to the company, Strachan says. When gas prices were lower, service companies were willing to accept lower rates for their services. This gave the company increased savings while developing the Bakken.

The regulatory landscape has also been an area of concern for TriStar, Zabinsky says. He says the 2006 Canadian taxation of royalty trusts reduced the liquidity of many juniors because it limited their access to capital. In addition, in late 2007, Alberta reviewed its royalty structure and proposed a new framework to come into effect in 2009. With the new scheme expected to significantly change the economics in Alberta, Zabinsky says TriStar is in a strong position relative to many of its competitors given its significant position in Saskatchewan.

Wealth of Experience
Both Zabinsky and Strachan say a major component of TriStar’s success is the experience its leaders bring to the table. Chairman of the Board Paul Colborne was CEO and president of StarPoint from 2003 to 2006, and before that time served in the same capacity at Startech Energy.

Current CEO and President Herman served as vice president of finance and CFO under Colborne at StarPoint, and has also held an executive position with Ventus Energy Ltd. Zabinsky came to TriStar after spending 11 years with a major Canadian investment and corporate bank, and has active knowledge of mergers, acquisitions, financings and corporate reorganizations, according to the company.

Strachan joined StarPoint as a senior geologist in 2004, working his way up to manager of geology and finally his current position as vice president of exploration. Before joining the company, Strachan was a senior geologist with Upton Resources Inc.

Zabinsky says TriStar is dedicated to making sure it is well-stocked with experience at every level. “The philosophy we’ve had from day one here at TriStar as we’ve grown our focus has been that we don’t underhire,” he says. He adds that TriStar has been successful in hiring numerous senior level employees from rival companies.

“The majority of our employees are very experienced, high-level employees because our strategy and culture is very attractive,” Zabinsky says.

The entire company is filled with experience, Strachan says, and he thanks the industry’s efforts in training and development for that. In fact, he adds, he believes the region is one of the best places in the world to learn about the oil and gas industry.

“A lot of our people are very educated,” he says. “I think we have one of the best university frameworks here in western Canada for this industry.”

Being Flexible
The key to the future of TriStar is simple, according to Zabinsky. “Flexibility,” he says. The company is focused on achieving per-share growth whether it is “through the drillbit or through accretive, strategic acquisitions.” He says the company is continuing to look at opportunities in both areas.

Regardless of what opportunities meet TriStar in the future, Zabinsky says the company is prepared for them. The company’s management has experience ranging from running a 200 boe/d company to a 38,000 boe/d company. This gives the company a strong foundation moving forward that can successfully deal with nearly any situation.

Zabinsky says many companies have become so used to operating at one end of the spectrum or the other that they can become locked in their ways and miss opportunities when they arise. TriStar, on the other hand, knows what it’s like to be successful as a large company and a small one. “There are very few management teams that do both and do both well,” he adds.�