L.P. and affiliates has interests in or operates over 50
various properties located in Texas and Oklahoma. In addition,
there are 12 active prospects in the company's portfolio.
Davis Holdings L.P. focus area is in Hardin
and Jasper Counties, Texas where the success of exploration
efforts has been in the Yegua and Wilcox sands. Davis Holdings
L.P. is continuing to actively lease and drill in this area.
Summary of Oil and Gas Expertise:
30 Years Oil and Gas Experience
Proven Tract Record
Core Investor Group
Experienced Staff of Professionals
Davis Bros. has historically conducted
its exploration activities in association with substantial
corporate and sophisticated private investors. The Company's
projects have ranged from single exploratory prospects to
multi-year, multi-well programs.
Mississippi - Alabama Program
The largest major program conceived and
implemented by Davis Bros. in the 1970's was its
participation in the efforts of Davis McCoy, Inc. This company
was organized by Davis Bros. to conduct an extensive
exploration program on behalf of Public Service Company of'
Oklahoma and Gulf States Utilities of Beaumont,
This program acquired in excess of 400,000 net
acres of leases and 2,000 miles of seismic data over a three
year period. The first prospect drilled in this program
yielded an outstanding Smackover discovery which opened up the
Chunchula Field in Mobile County, Alabama. Subsequent to the
discovery. thirty-Four (34) producing wells were successfully
completed, yielding similar productivity.
studies of this field conducted by the operator, Union Oil of
California. indicated recoverable condensate reserves or 102
million barrels and recoverable gas reserves of 179 billion
During the term of the project, an agreement
was effected with the largest independently owned oil
partnership in Norway to participate in the venture, which
provided for a two phase commitment. The first phase required
the Norwegians to expend $22.5 million in exploration and
drilling on the 400,000 net acre leasehold position in order
to earn an interest in the block, excluding all ownership in
the Chunchula Field. The second phase dealt with their funding
of development drilling expenditures on each prospect after
the initial exploratory well had been drilled. This program
developed the Waveland Field in Hancock County. Mississippi
where it established excellent gas reserves in the
Mooringsport Formation at approximately 13,000 Feet. Deep
drilling on the program acreage resulted in the discovery of
Catahoula Creek Field in Hancock County, Mississippi. This
program also developed excellent gas reserves in the Anadarko
Basin of Oklahoma.
One of Davis
Bros.' most significant exploratory successes in the
1980's was the Alabama Ferry Field in Leon County, Texas. The
field produces from the Glen Rose Formation in the "D"
internal over a large area ranging in depth from 9,000 to
10,500 feet. It is the largest Cretaceous-aged discovery of
its kind since the Giant Fairway Field found in
Davis Bros. assembled a group
consisting of London and Scottish Marine Oil (Lasmo)
headquartered in the United Kingdom; Weeks Exploration, whose
main offices are in Australia; Neste Oy, the National Oil
Company of Finland; and Logo Oil and Gas, owned by the Le Frac
family of New York, to jointly acquire leasehold, and to
explore for and develop reserves within an area of mutual
interest considered highly prospective by Davis
Many of the wells in Alabama Ferry Field
tested in excess of 1,000 BOPD and 1.5 MMCFD. The field is
currently being water flooded.
Chevron - Osage Indian
The most recent large joint venture
originated by Davis Bros. was consummated in
September of 1995, among the Osage Indian Tribe of Oklahoma,
Davis Bros. and Chevron. The agreement, very
historic in nature, was the first major exploration agreement
signed by the Osage Nation since 1916 and covers over 400,000
acres. Most of the area has been shot with 3-D seismic as part
of the joint venture. Recently, the Red Fork has been an
active exploration target. A total of 24 wells will have been
drilled in the Red Fork through 2007. An additional 100 wells
are planned. Reserves for this field could be greater than
10,000 million barrels of oil equivalent.
Lucky Leon Field
Lucky Leon Field was discovered in 2001 by Davis Bros. It is
the largest discovery in the non-pressured Yegua in the last
30 years in southeast Texas. It is estimated that current
recoverable reserves are 28 billion cubic feet of gas and 4
million barrels of oil.
Davis Bros. is
one of the top producers in Hardin co., TX.
Texas is one of the many primary areas of exploration for the
company, targeting the Yegua and Wilcox formations. The
company currently owns over 10,000 net acres of leases and
options in this general area.
Complementing its other exploration activities, Davis
Bros. owns and/or manages in excess of 500,000 gross acres
of mineral interests in twenty-two states. These acquisitions
represent the entire mineral assets of The Alliance Life
Insurance Company, Peoria, Illinois; The Central Standard Life
Insurance Company, Chicago, Illinois; The Commerce Trust Bank,
Kansas City, Missouri; The Wilbe Lumber Company, Des Moines,
Iowa; and the interests or numerous individuals and estates.
These mineral interests arc primarily concentrated in the
Anadarko and Arkoma Basins in Oklahoma, the Delaware Basin of
Texas and New Mexico, and the Salt Basin and Smackover
Provinces of Mississippi . Rather than operating its mineral
assets as would a typical royalty company. the philosophy of
Davis Bros. is not to grant leases on its minerals
until it has first considered participating in the drilling of
wells, This approach allows Davis Bros, to consider its
proprietary minerals as paid up leases which hold potential
for development as warranted.