The Company owns and operates natural gas and oil properties in eight states, with its proved reserves being located primarily in its core areas of the Deep Anadarko Basin and the Anadarko Shelf in the Mid-Continent region; the Permian Basin of southwest Texas and southeast New Mexico, and the onshore Gulf Coast region of south Louisiana and Mississippi. At December 31, 2000, the Company operated 500 productive wells and owned non-operated interests in 1,378 productive wells.
The Deep Anadarko Basin area is located in southwest Oklahoma and the Texas panhandle. In this core area, the Company owns an interest in 49 producing natural gas and oil wells that it operates and 177 producing natural gas and oil wells operated by others. During the year ended December 31, 2000, the Company drilled or participated in the drilling of 13 gross development wells in this core area, of which 12 were successfully completed as producing wells. In addition, during 2000 the Company’s total net daily production from the Deep Anadarko Basin area averaged approximately 7,720 Mcfe, or approximately 33% of the total production.
The Anadarko Shelf area is located in northwest Oklahoma and the Texas panhandle. In this core area, the Company owns an interest in 374 producing natural gas and oil wells that it operates and 109 producing natural gas and oil wells operated by others. During the year ended December 31, 2000, The Company drilled or participated in the drilling of four gross natural gas and oil wells in this core area, of which three were successfully completed as producing development wells. In addition, during 2000, the Company’s total net daily production from the Anadarko Shelf area averaged approximately 8,030 Mcfe, or approximately 35% of the total production.
The Permian Basin area is located in southwest Texas and southeast New Mexico. In this core area, the Company owns an interest in 41 producing natural gas and oil wells that it operates and 491 producing natural gas and oil wells operated by others. During the year
ended December 31, 2000, the Company drilled or participated in the drilling of five gross natural gas and oil wells in this core area, of which three were successfully completed as producing development wells. In addition, during 2000 the Company successfully recompleted seven wells in this core area.
The onshore Gulf Coast area is located in south Louisiana and Mississippi. In this core area, the Company owns an interest in 30 producing natural gas and oil wells that it operates and 15 producing natural gas and oil wells operated by others. During the year ended December 31, 2000, the Company did not drill or participate in the drilling of any natural gas and oil wells in this core area, but the Company successfully recompleted one well. During 2000, the Company’s total net daily production from the onshore Gulf Coast area averaged approximately 1,394 Mcfe, or approximately 7% of the total production.
The Company’s Carmen system purchases, transports and markets natural gas and oil production and disposes of water produced from the properties dedicated to the Carmen system. The Company operates 132 of the 200 producing natural gas and oil wells currently connected to the Carmen system.
Through the Carmen system, the Company purchases natural gas and oil at the lease and transport the production, with associated saltwater, to a collection and separation facility that it operates. From this point, the natural gas is delivered to a processing and compression facility operated by a third party operator. After processing, gas volumes are returned to the Company and sold into a
variety of delivery points. Oil purchasing and gathering, saltwater gathering and saltwater disposal comprise an integrated operation whereby oil and saltwater are gathered at the lease and subsequently measured and transported to a central facility through the liquids gathering line. Upon separation, the oil is aggregated and sold at a central sales point to a number of crude purchasers, and the saltwater is disposed of into the Company’s saltwater disposal well.
- Avoid 
- Value Gap 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value 
