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this practice because its management believed that it was more
efficient to use the existing data, produced by an engineer
already familiar with the reserves, than to start back at square
one, with an independent reserve engineer who was unfamiliar with
the properties.
c. Attempted and Failed Acquisitions
From the time it became public until the acquisition of Tri-
Power Petroleum, Inc. (Tri-Power), during November 1986,
petitioner's management team contemplated a large number of
acquisition opportunities. During 1986, they considered over 40
acquisition targets. Several of those companies did come on the
market, but petitioner was unsuccessful in acquiring them either
because the price was too high or because they were already
committed before petitioner had the opportunity to make an offer.
During January 1986, Petitioner opened discussions relating
to the acquisition of Brock Exploration Co. (Brock Exploration),
an oil and gas company headquartered in New Orleans, Louisiana.
Brock Exploration was owned and operated by Lawrence E. Brock, a
longtime friend of Mr. Jackson. Negotiations with Brock
Exploration progressed through the summer and fall of 1986.
During that time, however, petitioner's acquisition efforts
continued.
During March 1986, Messrs. Billings and Wagner met on a
number of occasions with representatives from Kennedy & Mitchell
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