Entrepreneurial Geology and Model for a New College Course (Acquisition of Oil and Gas Properties)

Robert Harmon¹, Robert W. Von Rhee², Tom Alexander³, and Bryan Tapp³.  (1) C. E. Harmon Oil, Inc., (2) KVR Energy, L.L.C., (3) Geosciences Department,

Tulsa University, Tulsa, OK  [email protected]

To fill a need for students to learn the basics of acquisitions of oil and gas properties where little, if any, academic training exists, a semester-long Senior/Graduate level course was proposed to the Geosciences Department at the University of Tulsa. Three practicing geologists, all active members on the Board of Geosciences at the University of Tulsa, volunteered to create and teach the course in Fall 2006, with the objective of Òfilling in the acquisitions gapÓ in the university curriculum.

The course syllabus outlined course content and evaluation procedures in detail. As the course was to be Òreal-world,Ó exams were eliminated. Instead, two projects/ presentations were assigned with a list of items for each projectÕs 3-ring binder. In addition, quizzes on terminology and homework covering auction properties were given. 

For Project #1, students were each assigned an auction property for sale during the course. Students had to evaluate their property and formulate a bid strategy. Each student had to collect individual-property due diligence, database information, completion cards, well logs, etc. Simple economics and reserves were calculated using cost figures, calculations, and spreadsheets provided by the instructors.

Next, for Project #2, students advanced to exploit their same Project #1 property by prospecting for a) a bypassed formation behind pipe or drilling deeper in an existing well and/or b) drilling a new well. All studentsÕ subsequent projects/presentations showed impressive results of material comprehension and breadth of research.

In conclusion, students learned and applied some of the basics of acquisition evaluation and exploitation techniques. Additionally, they generated and maintained their own individual acquisition and prospect portfolios for future reference or interview purposes.