Davis Petroleum Corp

Davis Petroleum Corp

Davis Petroleum is an innovative leader in the complex, challenging world of independent oil and gas exploration. With more than half a century of success discovering and exploiting prolific fields from the Great Plains to the Rocky Mountains to the Gulf of Mexico, Davis is an established force in the industry. Creativity, experience, focus — discover Davis Petroleum.

Dedicated to excellence in the pursuit of new petroleum reserves, Team Davis is armed with state-of-the-art science, vast technical expertise and uncommon management acumen. But just as important as our ability to drill deep or discover reserves that others overlook is the Davis commitment to bed-rock business integrity. Our partners and the industry at large all know that Davis Petroleum stands for doing the job and doing it right.

Big fields, big opportunities. A constantly evolving company, Davis began its relentless quest for oil and gas reserves in the Eastern Interior of the U.S., subsequently expanding its exploratory horizons tthrough the Rocky Mountains and the Gulf Coast. Founded by Jack Davis in the 1940’s and carried forward by his son Marvin Davis and Marvin’s son Gregg Davis, the company has discovered major fields in Colorado, Wyoming, Texas, Oklahoma and along the Texas and Louisiana Gulf Coast.

Bringing together the best geologists, landmen, engineers, entrepreneurs and managers, Davis Petroleum (and its predecessor Davis Oil) has been a leading independent oil and gas exploration concern for over 60 years. Privately held and publicly respected.

Davis Oil Company and Davis Petroleum Corporation have over 60 years of extensive experience in the exploration and production of oil and gas. Mr. Jack Davis founded Davis Oil Company, the predecessor to Davis Petroleum Corporation, in the 1940’s. Then, in the 1950’s, Jack’s son Marvin took control of the company. Since its inception, Davis Oil Company established a successful track record for exploration having drilled several thousand oil and gas wells. The following is a summary of significant milestones in the company’s operating history:

1940s • Focused on the Eastern Interior and Illinois Basins, Central Platform of Oklahoma and Texas and the Midland Basin.

1950s • Marvin Davis, son of Jack Davis, assumes control of Davis Oil Company.
• Headquarters relocated to Denver, CO

1960s • Expansion of exploration activities into Powder River, Greater Green River and Big Horn Basins of Wyoming, Paradox and D-J Basins, the Four Corners areas in Colorado, Utah, New Mexico and Arizona.
• Discoveries generated in excess of 38 million barrels of oil and 18 billion cubic feet of gas.
• Division office opened in New Orleans, LA.

1970s • Expanded operations in the Rocky Mountain Region to include the Greater Green River Basin of Wyoming, the Overthurst Belt in Wyoming and Utah and the Williston Basin in North Dakota.
• Initiated exploration of the Anadarko Basin in Oklahoma and Arkoma Basin in Arkansas.
• Explored West Texas and the Texas Gulf Coast area.
• Division offices in New Orleans, LA, Tulsa, OK, Houston, TX and Midland, TX.

1980s • New discoveries generated in excess of 500 bcf of gas.
• Only three companies, Shell, Amoco and Exxon, drilled more exploratory wells in the U.S. than Davis
• New discoveries and existing fields generate in excess of 520 bcf of gas and 23 million barrels of oil.
• During the early 1980’s, Davis Oil sells majority of production.
• Davis Petroleum Corp. incorporated in 1986.

1990s – • Marvin’s son Gregg Davis becomes President of Davis Petroleum Corp.
Present • Davis profits from stable oil and gas prices, a heightened demand for gas in commercial industrial and residential sectors, new and refined drilling techniques, improved seismic technology and better completion procedures.
• Davis drills over 116 wells primarily in the Gulf of Mexico Shelf, onshore Louisiana and Texas and the Rocky Mountain Region.
• From 1998-present, Davis discovers new reserves of oil and gas totaling 215 bcf/gas and 20 million barrels/oil and has 250 bcfe/gas remaining for the Company and its partners to exploit.
• The Davis Family forms Davis Offshore, L.P., a world-class team of Deepwater explorationists and businessmen.

DETAILED HISTORY
Davis Oil Company, the predecessor to the Davis Petroleum Corp. was founded in 1940’s by Mr. Jack Davis. During the early 1940’s, the Company’s primary focus was the Eastern Interior and Illinois Basins in the Continental United States. As petroleum demand increased and markets grew rapidly following World War II, Davis Oil expanded its business into the Central Platform of Oklahoma and Texas as well as the Midland Basin of Texas.

In the mid-1950’s Marvin Davis, son of Jack Davis, was introduced into the management of the Company, and shortly thereafter, assumed full control. In the 1950’s, Marvin Davis moved its center of operations to Denver, Colorado. Davis Oil then commenced an aggressive exploration program concentrating its efforts in the Powder River, Greater Green River and Big Horn Basins of Wyoming and in the Paradox, D-J Basins and the Four Corners areas in Colorado, Utah, New Mexico and Arizona. During this period, Davis Oil opened a division office in New Orleans, Louisiana in order to explore in the Gulf Coast Region.

Throughout the 1960’s, Davis Oil continued to expand its exploration activities and began drilling deeper, more complex structures and stratigraphic traps. Davis Oil made numerous large discoveries, which ultimately became major fields during this period, particularly in the Powder River Basin. Some major Minnelusa fields include C-H, which has produced in excess of 5.4 million barrels of oil, Mellott Ranch, exceeding 7 million barrels, Hamm, producing over 7.8 million and Wallace surpassing 8.5 million barrels. Some major Muddy fields include Collums, producing more than 6.4 million barrels of oil and 6.8 billion cubic feet (Bcf) of gas and Mill-Gillette, producing in excess of 4.1 million barrels and 10.5 Bcf. Higgins field produced 88 Bcf from Mesaverde formation. Sandbar East field produced in excess of 12.7 million barrels of oil and 7 Bcf.

In the 1970’s, Davis Oil continued it’s aggressive expansion in the exploration business in order to take advantage of the escalation in world oil and gas prices. Davis expanded its operations in the Rocky Mountain Region to include the Greater Green River Basin of Wyoming, the Overthrust Belt in Wyoming and Utah, and the Williston Basin in North Dakota. In Oklahoma and Arkansas, Davis Oil began exploring into the deeper Anadarko and Arkoma Basins. In Texas, Davis Oil explored West Texas and the Texas Gulf Coast area. By the end of the decade, it had division offices in Houston, Midland, New Orleans and Tulsa. The center of its operations remained in Denver.

Davis Oil’s outstanding exploration success and production efforts established it among the top oil companies in the United States in terms of new field discovery wells drilled. By the end of the 1970’s, the Company had established itself among the top U.S. oil companies in terms of new field discovery wells drilled. In fact, during the 1970’s, only three other companies – Shell, Amoco, and Exxon drilled more exploratory wells in the United States. In 25 years, Davis Oil had been involved in drilling thousands of oil and gas wells. From 1976 through 1980, Davis Oil operated 1,169 wells. Davis Oil had grown to nearly 500 employees.

During the 1970’s, Davis Oil discovered several major fields, including Hay Reservoir and Mesa in the Green River Basin, which have produced gas in excess of 146 Bcf and 78 Bcf, respectively. Davis Oil also discovered the Jonah field and produced over 7.6 million barrels of oil and 738 Bcf. White Oak Creek in Cherokee County, Texas has surpassed 74 Bcf. Davis discovered the Bridgeport S.W. Field in Caddo County, Oklahoma, which has produced more than 67 Bcf of gas. Davis Oil also added significantly to existing fields during this period. For example, as a direct result of Davis’ contribution, Bastian Bay in Plaquemines Parish, Louisiana has produced more than 69 Bcf of gas and Valentine in Lafourche Parish, Louisiana has surpassed 43 Bcf of gas. Further, Hartzog Draw in the Powder River Basin has produced in excess of 13.7 million barrels of oil and 5.1 Bcf of gas and South Thomas in Custer County, Oklahoma have exceeded 103 Bcf of gas.

Through the early 1980’s, Davis Oil discovered several significant fields. For example, Gun Point Field in Dewitt County, Texas has surpassed 93 Bcf of gas. In the Powder River Basin, the Amos Draw complex has produced in excess of 108 Bcf. Finley Draw has produced more than 2.5 million barrels of oil and 22 Bcf of gas and Edsel has produced in excess of 5.3 million barrels of oil. Davis Oil also contributed significantly to existing fields. For example, as a direct result of Davis’ participation, Bell City South in Calcasieu Parish, Louisiana, produced more than 3.4 million barrels of oil and 33 Bcf of gas, Little Pecan Lake in Cameron Parish, Louisiana, and surpassed 20 Bcf of gas and Broussard in St. Martin and Lafayette Parishes, Louisiana, produced in excess of 116 Bcf of gas. Further, Calumet Waterflood in Canadian County, Oklahoma produced more than 9.9 million barrels of oil and Hydro Northeast Complex in Blaine County, Oklahoma surpassed 63 Bcf of gas.

In 1981, Davis Oil sold a majority of its existing production, over 930 wells and associated leasehold to Home Petroleum of Canada. However, Davis Oil continued to explore for hydrocarbons at a vigorous rate. During the year of 1981, Davis Oil operated 356 wells and participated in an additional 89 wells, for a total of 445 wells. This was the year in which the Company participated in the most wells in its sixty-year history.

In January 1985, just before the plunge in world oil prices, Davis Oil again sold most of its production, which consisted of approximately 436 wells and associated leasehold to Apache Corp. By 1985, Davis had consolidated into two division offices: one in Denver and one in New Orleans.
In July of 1986, Davis Petroleum Corp. was incorporated as a Delaware corporation that was authorized to do business in eleven states and became the new oil and gas exploration concern of the Davis family. Effective January 1987, Davis Oil also sold its Broussard properties. During the years between 1986 and 1988 Davis Petroleum scaled back it’s oil and gas exploration efforts, primarily due to the decline of world oil prices. Almost all the production that Davis found during these years was sold, effective April 1988.

The 1990’s marked a renaissance in U.S. Oil and Gas industry, due to more stable oil and gas prices, a heightened demand for gas in commercial, industrial and residential sectors, new and refined drilling techniques, improved seismic technology and better completion procedures. Davis Petroleum participated in drilling over 116 wells between 1989 and 1996 located primarily in the Gulf of Mexico Shelf and onshore Louisiana and Texas. In October 1995, Davis moved its New Orleans office to Houston and consolidated its efforts between the Houston and Denver offices.

By now it’s an old story but a good one — Davis Petroleum continues to dig deeper, work harder and optimize its exploration effort to stay ahead of the competition.

Davis Petroleum Corp. is controlled by Marvin Davis as CEO and Chairman of the Board. He is backed by a top-flight staff of petroleum geologists, geophysicists, petroleum engineers, landmen, financial accountants and administrators. His son Gregg Davis serves as President of Davis Petroleum and lives in Houston overseeing the day-to-day operations of the company for the family. Biographies of key personnel are set forth below:

Marvin Davis
Gregg Davis
Paul Messinger
Grace Barragato-Drulias
Mark Goldberg
George Canjar
J. Michael Gregory
Alan D. Martinkewiz
Bud Gholson
David Hinners

CEO and Chairman of the Board
President
Director & Vice-President
Chief Financial Officer & Vice-President
Assistant Vice President & Landman
Exploration Manager
Land Manager
Landman
Landman
Engineer

Marvin Davis – Los Angeles
CEO and Chairman of the Board

Marvin Davis is a private investor and business executive whose principal activities during a career of more than 50 years have spanned the oil and gas, real estate, resort and leisure services and entertainment. Mr. Davis conducts most of these activities through the Davis Companies, headquartered in Los Angeles, California.

Mr. Davis was born in Newark, New Jersey, in 1925, and graduated from New York University with a BS Degree in 1947. He and his wife, Barbara, live in Los Angeles and have five children. His two sons, John and Gregg, are both involved with their father in the Davis Companies. John Davis, a Harvard Business School graduate, operates Davis Entertainment Company, an independent television and film production business. Gregg Davis, a USC graduate, is President of Davis Petroleum and Davis Offshore in Houston.

Most of Mr. Davis’ business interests are privately held. An overview of his principal business activities other than Oil and Gas are as follows:
ENTERTAINMENT

Twentieth Century-Fox Film Corporation
The Davis family owned Twentieth Century-Fox Film Corporation, the motion picture production and distribution company, from 1981 to 1985. Twentieth Century-Fox was one of the first highly successful leveraged buyouts of the 1980’s. Fox’s assets included Pebble Beach Company, Aspen Skiing Company, the studio and film library, among other valuable holdings.

Davis Television
In a joint venture with Fox Television Stations, Inc., the Davis family owns and operates Fox affiliates in Wausau, Wisconsin and Clarksburg, West Virginia. It also has applications pending for construction permits in Corpus Christi, Texas and Topeka, Kansas.

REAL ESTATE
Marvin Davis has been actively involved in commercial real estate properties throughout the country. Members of the Davis organization have substantial expertise in real estate and allied industries, including the development and operation of major mixed-use projects, high-rise office buildings, retail complexes, industrial parks, hotel, ski and golf resorts, health clubs and a variety of land ventures. Historically, the firm has worked with joint-venture partners and investors, including such companies as Mobil Oil, Prudential Insurance Company of America, the Marriot Corporation and private interests such as the Henry Crown family.

Among the most notable resort properties once owned, developed and/or operated by a Davis controlled affiliate are Pebble Beach Company, with its two luxury hotels, four world class golf courses and recreational amenities; Aspen Skiing Company, with 200 miles of skiing on three mountains and the Little Nell luxury hotel; the historic Beverly Hills Hotel; and Breckenridge Ski area.
Notable commercial office and retail properties formerly developed, owned and operated under Davis control included, among others: Fox Plaza in Los Angeles; 181 West Madison in Chicago; 75/101 Federal Street in Boston; Regency and Regency West in the Denver Technological Center; City Center in Denver; and Reston Town Center in Reston, Virginia.

Davis maintains interests in 515 North State Street in Chicago, the world headquarters for the American Medical Association and The Water Garden in Santa Monica, California, which was developed under Davis’ control.

VENTURE CAPITAL
Through venture capital affiliates, Marvin Davis invests in the communications, technology and information industries. Mr. Davis typically works with joint venture partners and private investors, including Viacom, Soros Capital and Sony. Investments have included providing equity capital to Catapult Entertainment, Inc., a venture startup company specializing in video platforms and network development, and providing equity capital to WebTV Networks, Inc., a startup company specializing in Internet access and Internet network development. Recent investments have been made through interests in Stone Canyon Venture Partners, LP.

OTHER INVESTMENTS
The Davis Family has achieved considerable success in its investments. The Davis’s are noted for their ability to identify undervalued companies offering the potential for strong growth and capital appreciation.

Included are investments in the airline industry. After an internal analysis and following a consultation with industry experts, the Davis Companies made a substantial investment in Northwest Airlines during the late 1980s, resulting in a substantial profit for Davis Companies and other stockholders.

In 1989, Mr. Davis also made several proposals to acquire United Airlines Corporation. While Davis Companies’ bid was unsuccessful, the competing bids prompted increases in the UAL stock price, again providing substantial profits to Davis Companies and other UAL stockholders.
Mr. Davis continues to pursue a spectrum of investments and remains widely regarded for his ability to discern long-and short-term value and judge potential growth opportunities.

PHILANTHROPIC ACTIVITIES
Mr. Davis and his family have long been major supporters of several medical institutions and have been active in raising funds for a variety of causes including The Barbara Davis Center for Childhood Diabetes and the Children’s Diabetes Foundation in Denver, the only facility of its kind devoted to children with diabetes.

Mr. Davis and his wife regularly hosted Denver’s Carousel Ball, which was the largest single event fundraiser in the United States, in support of this facility. The Davis’s now host a new bi-annual fundraising event in Los Angeles, the “Carousel of Hope”, an evening gala attended by prominent members of the entertainment and business communities. The Davis’s endowed the Barbara and Marvin Davis Research Building at Cedars-Sinai Medical Center in Beverly Hills.

Gregg Davis – Houston
President

Gregg has over 20 years experience in the oil and gas industry having worked in Davis Oil Company and now Davis Petroleum Corp. since the mid 1970’s. He is the third generation of the Davis Family to manage the family’s oil and gas business, having been groomed from an early age to succeed his father and carry on the business to future generations. He has a strong understanding of the petroleum exploration process having worked extensively hands-on in each of the company’s departments over the years including land, geology, geophysics, engineering and marketing and transportation. He also has enjoyed the unique experience of having worked closely with his father on an executive level to gain a strong sense of the business mechanics of building and operating a successful exploration enterprise.

Gregg has extensive experience in the development and management of exploration teams and their respective drilling programs and his abilities have been proven by the success the company has enjoyed in finding significant reserves during his tenure. Gregg is a graduate of the University of Southern California where his studies included geology, oceanography and business administration.

Gregg has garnered extensive business relationships throughout the petroleum and financial world including his father’s contemporaries at the highest executive levels and their many successors whom he deals with on a day-to -day basis. He also enjoys strong political ties from local government leaders to the highest executive level-The President of the United States. Over the years he has met and spent time with many top leaders including President George W. Bush, President George H. W. Bush, President William Clinton, President Ronald Reagan and President Gerald R Ford. He also has relationships with their many siblings.

Paul Messinger – Denver
Director & Vice-President

Paul Messinger has been with Davis since the very beginning. Messinger attended Brooklyn College, then joined the company in an operating position in 1939. With the outbreak of WWII, Messinger enlisted in the U.S. Army and served with distinguished honor in the South Pacific Theater and Japan. After discharge from the armed forces, he rejoined Davis and moved to Denver in 1954, serving as Division Landman and Exploration Manager. In 1986, he became Vice President and Director of Davis Petroleum Corp. Longtime member of the Denver Association of Petroleum Landmen, Messinger was named “1989 Landman of the Year.” He is a member of the American Association of Professional Landmen and a Certified Professional Landman. His many community activities have included, serving as Chairman and Chairman Emeritus of the Colorado Ballet and Area Governor of Toastmasters International. He is Co-Chairman of the Corporate Council of the University of Colorado at Denver College of Arts and Media. He is also on the advisory boards of the University of Denver and the Denver Academy. He has been honored locally and nationally for his dedication and philanthropic efforts in education and humanitarian endeavors. He has been listed in Swarthmore’s “Who’s Who” for 2000-2001 and 2002-2003, and the Colorado “Who’s Who” in 1984.

Grace Barragato-Drulias – Los Angeles/Houston
Chief Financial Officer & Vice President

Grace Barragato-Drulias has over 25 years experience in the oil and gas industry. She attended Fairleigh Dickinson University and was employed with the American Institute of Certified Public Accountants. Working with Davis Oil Company since 1978, and subsequently Davis Petroleum Corp. and Davis Offshore Management LLC, Grace is involved in all aspects of the Finance Department. Her involvement extends to all of the company’s interests, from day-to-day financial reports to her knowledge of drilling and well operations. Grace methodically maintains the integrity of the Finance Department and all related issues.

Mark Goldberg – Denver
Assistant Vice-President & Landman

Mark Goldberg joined Davis Oil Company in 1981. Throughout his tenure at Davis Oil Company and Davis Petroleum Corp., he has been actively involved in land administration management. He has been an Assistant Vice President since 1998 and is a member of the Denver Association of Petroleum Landmen. Goldberg graduated from the University of Colorado with a Bachelor of Arts Degree in Biology in 1980 and received an additional degree in computer programming.

George Canjar – Houston
Exploration Manager

Mr. Canjar is a 22 year industry veteran of the oil & gas industry. He joined Davis from Carrizo Oil & Gas, where he served as VP of Exploration and Development. At Carrizo, Mr. Canjar developed the prospect portfolio and concurrently performed risk assessment and early data integration to optimize investment and future value of the drilling programs. In addition, he actively managed company prospect staff, prospect generation shops, company operations and joint venture partners. Previously he served in a variety of technical and managerial positions at Shell Oil Company, including Technical Manager Geology & Geophysics and Team Leader for numerous integrated project execution groups. Mr. Canjar is both a certified Petroleum Engineer and Registered Geologist. He has a track record of success with significant experience in the management and execution of large drilling programs including over 60 3D project areas and 300 drilling opportunities. Specifically, George has repeatedly managed annual drilling budgets of between $20 and $100 million and led teams which have discovered and/or developed more than 200,000 MBO and 2 Tcf of reserves in the aggregate. He is a graduate of the Colorado School of Mines.

J. Michael Gregory – Houston
Land Manager

Mike graduated from the University of Texas in 1979 with a degree in Petroleum Management and has over 23 years of extensive and varied experience as a Landman. Mike joined Davis as Land Manager in 1996, and oversees many of Davis’ activities such as leasing, negotiations, contracts and other business related activities. Prior to joining Davis, Mike was employed by Atlantic Richfield Company and held various positions including (i) District Landman in Anchorage, Alaska where he was responsible for managing all land activities for the Prudhoe Bay and Kuparuk Units as well as nearby North Slope exploration opportunities and all land related activities in the Cook Inlet; and (ii) Division Landman in Lafayette, Louisiana where he was responsible for acquisitions and divestitures and supervised the sale of more than $40MM of producing properties. Prior to joining Atlantic Richfield, Mike worked for Petro-Lewis Corporation and was responsible for all land activities in Louisiana. Mike began his career with Getty Oil Company was promoted to Lead Landman, South Louisiana prior to joining Petro-Lewis.

Alan D. Martinkewiz – Houston
Landman

Alan graduated from the University of Oklahoma with a BBA degree majoring in Petroleum Land Management and received his MBA from Centenary College, located in Shreveport, Louisiana. With over 22 years of extensive land experience, Alan has worked for both major and independent oil and gas companies. While at Davis, Alan’s primary area of responsibility has centered on the assembly and marketing of the many oil and gas prospects generated by Davis within the Louisiana Gulf Coast region. As a seasoned Land professional, Alan consistently and successfully manages the many complex land and title matters inherent to exploration and development projects in South Louisiana.

Bud Gholson – Houston
Landman

Bud graduated from the University of Texas in 1980 with a BBA/PLM degree and has over 22 years of quality Gulf Coast experience. Bud joined Davis Petroleum Corp. in January of 2001 and has focused his efforts on assembling lease blocks and negotiating the contracts needed to drill exploratory prospects in Texas. Prior to joining Davis, Bud was employed by Mitchell Energy

Corporation for over 16 years. Bud had various positions with Mitchell including (i) District Landman for the Eastern District where he was responsible for the majority of land activities in the Texas Upper Gulf Coast and South Texas (Eastern District accounted for 40% of Mitchell’s production); and (ii) Senior Staff Landman where he was responsible for the acquisition of producing properties valued at $100MM, coordinating land activities to assure that exploratory and development projects were drilled timely, and putting together 3-D seismic surveys for exploratory prospects in Texas. Prior to joining Mitchell, Bud began his career with Getty Oil Company in 1980 as an Area Landman working South Louisiana where he was promoted in 1982 to Landman II. Bud is a Certified Professional Landman and a member of various professional organizations.

David Hinners – Houston
Engineer

Dave has over 28 years of engineering and managerial experience in the Gulf Coast, Mid-Continent, and Rocky Mountain regions. His recent experience includes eight years as head of engineering and operations for Antara Resources. Dave led an engineering and geotechnical staff through the successful acquisition of over $60 million of producing properties. Utilizing proven methods and innovative procedures, this staff efficiently exploited and ultimately divested these properties to a public company. Prior to Antara, Dave was head of engineering and operations for Texoil Company for ten years. At Texoil, he directly designed, supervised and managed the drilling of 60 exploratory wells, as well as the subsequent completions, facility and pipeline installations and production. Dave graduated from Louisiana State University with a Batchelor of Science in Petroleum Engineering.

Davis Petroleum is an innovative leader in the complex, challenging world of independent oil and gas exploration. With more than half a century of success discovering and exploiting prolific fields from the Great Plains to the Rocky Mountains to the Gulf of Mexico, Davis is an established force in the industry. Creativity, experience, focus — discover Davis Petroleum.