- 15 - Montana). Dave True was also a pioneer in the successful use of water flooding to increase recoverable reserves. Dave True believed that the only way to perpetuate his business would be to find and develop replacement reserves and that doing so would require substantial exploration and development outlays. True Oil expended considerable funds without generating substantial additional production. From 1972 to 1998, True Oil spent approximately $174 million on exploration and drilling costs that resulted in dry holes.6 Dave True’s continuing commitment to exploration for new reserves, and his aversion to incurring outside debt, required the partners to channel their profits from True Drilling and other True companies into True Oil in order to finance continued exploration activities. Effective August 1, 1973, Dave True gave each of his children 8-percent general partnership interests in True Oil and True Drilling. The owners and ownership percentages immediately after the gifts were: Dave True (63 percent), Jean True (5 percent), and each of the four True children (8 percent). 4. Belle Fourche Pipeline Co. In 1957, Dave True and other Wyoming operators organized Belle Fourche Pipeline Co. (Belle Fourche) as a Wyoming 6True Oil’s total intangible drilling costs from 1972 through 1998 were $301,016,235, which included costs of drilling on proven properties, developmental drilling, and exploratory drilling. Fifty-eight percent of total intangible drilling costs (approximately $174 million) were spent on nonproductive wells.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011