A History of the Promoted Deal
Michael L. Hendricks
Hendricks and Associates, Inc, Englewood, CO
Promoted exploration and production projects have been a main stay of the United States Oil and Gas Industry. Some of these promoted deals have turned lowly geoscientists and land persons into thriving millionaires, but most have not. Promoted deals create fear in the hearts and minds of some managers and executives who complain about high prices and “carrying” someone through a project, but some promoted deals have made these same skeptics very important and, in some cases, wealthy.
A promote is simply money that is paid for an idea or for acreage in an area where geoscientists have ideas. If the idea and data supporting it are exceptional, a premium may be asked by the promoter and paid by an acquiring entity (promotee). Certainly, economic parameters drive this business decision.
The thrust of this talk is review some promoted deals in the earliest days of the U.S. petroleum industry and follow promoted deals as they evolved into those that we know today. Through the generosity of fellow geoscientists, their personal stories of promoted successes and failures will be revealed.
AAPG Search and Discovery Article #90004©2002 AAPG Rocky Mountain Section, Laramie, Wyoming