- 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 NextLast modified: May 25, 2011