The Fifth Column: On Oil and Gas Property Acquisitions Models, or Approaching Optimality by Inflexible Means

A few short years ago there was a typically nameless small oil company that operated entirely in one nameless western state. The owner of this company was the archetypical wildcatter who got lucky. By his midfifties his income was equal to the combined GNPs of some UN microcountries. At that point in his life he decided that he would like to spend less time wheeling and dealing and more time with his (present) wife, family, and friends. Also, by that time he had with him a closely knit team of geologists and landmen, well paid in their work. It was clear that some organization or system needed to be set up to give this team general, but firm, guidance to keep on doing good even though he might not be in the office that much anymore on a day-to-day basis. After considerable thought he enunciated an operating rule for his troops that had amazingly successful results. Within five years his company had an enviable reputation in the business. It began to seem to any rational observer that when they finally did drill a property, they just couldn't seem to miss.