By 1990 we were operating over 1,200 wells and were the largest independent oil operator in the Basin. This success was a result of a tremendous team effort of my staff that conducted in-depth geological analysis of both the drilling prospects and the properties designated for acquisition. In addition, we purchased several million dollars of existing oil producing leaseholds, which were largely leveraged with our local bank. All loans for these acquisitions have been repaid through the profits generated from the acquisitions. While this may sound highly unlikely considering the fluctuating crude prices and the resulting cash flow difficulties, there are two reasons why this is possible experience and efficiency.
Experience speaks for itself.
However, operating efficiency in a business where the operator has no control over the price he receives for his product is vital. We control our costs of operating by owning all of the necessary equipment to drill, complete and operate all of our wells. Now in regard to Devin Energy, it is our intention to develop this company similarly to our private company but to begin by acquiring existing production, increasing the oil production through our experience and operating efficiency. But Devin has tremendous benefits that I didn t have when I began in this industry properties that have already been evaluated by my staff and field personnel with experience to have the properties producing at their highest level at minimal operating costs. Give us a frank assessment of your top management team.