Inside a Growing Oil and Natural Gas Company: An Interview with Bret L. Boteler of EnerMax, Inc.

In the 1950s, drilling for hydrocarbons using traditionaladvanced drilling techniques in use today, such as
methods carried a 50/50 risk, and even "successful"horizontal drilling, are penetrating zones that were
wells (oil or gas found) were often commerciallypreviously considered unreachable. For example,
impractical. That reality has changed over the pastEnerMax is scheduled to drill a well this summer in a
twenty years. Advancements in technology andsuburban neighborhood in Tarrant County, Texas,
geophysical studies have transformed soft speculationwhere they plan to drill in the prolific Barnett Shale to a
into real, hard science. The U.S. Department of Energydepth of 6,500 vertical feet and 2,400 horizontal feet.
describes the recent triumphs of the oil and gasThe 2,400' horizontal leg will extend underneath nearby
industry as "logic defying".It's not just about drillinghomes, allowing EnerMax to penetrate their target
fewer dry holes. New methods are extending the lifezone while leaving the neighborhood undisturbed.
of wells, allowing more reserves to be extracted andEnerMax will apply advanced frac and completion
boosting economic returns. As a result, much broaderprocedures to ensure the maximum recovery of
group of investors now has access to oil and gas ashydrocarbons.Technological advantages require
a viable investment option. I asked Bret L. Boteler,significant financial resources. In 2004, EnerMax
President of EnerMax Inc., to help me understandentered into an agreement with American Energy
some of the principal changes in today's oil and gasPartners, Inc. (AEPI) to join them in their efforts to
industry.Since many of us know very little about thereprocess 3-D data concentrated primarily along the
industry, I asked him to start simple and work towardsTexas and Louisiana Gulf Coast. Because
the more complex. Bret Boteler began by defining hisunprocessed 3-D seismic information can contain
company's business for me in layman's terms: "Ifshadows and misleading images caused by equipment
someone asked me what we do, I'd say we're a jointduring the original recording, it is necessary to filter the
venture manager. We put together joint ventures thatdata for clearer results. Geotrace Technologies, Inc., an
develop, drill, and manage oil and gas drillingindustry leader in imaging and analyzing subsurface
programs."Bret Boteler began EnerMax out of hisdata, has been selected to reprocess the data using
home office in 2001. Five years later, Mr. Boteler andadvanced analysis techniques such as High Frequency
EnerMax occupy over 3,400 square feet of officeImaging (TM) (HFI(R)), Frequency Absorption Response
space where he enjoys the company of seven(FAR), and Amplitude versus Offset Analysis (AVO).
employees. Last year marked the fourth straight yearEven though the reprocessing carries a significant price
that Bret L. Boteler's company has earned 50+%tag, it is well worth the price when you consider the
annual gains. Mr. Boteler attributes EnerMax's20-30% increased success rate.When I asked Mr.
substantial growth and success to two things: hisBoteler about difficulties facing the industry today, he
talented, reliable staff and their use of moderntold me that one of the main issues is rig availability.
technology.Mr. Boteler described for me the significantRecent hurricanes and tropical storms damaged drilling
role that today's technology plays and the advantagesrigs and oil refineries along the southern coast. The
won over methods twenty years ago. EnerMax Inc.resulting reduction of oil and gas production in the
participates in drilling wells discovered by reprocessedUnited States heightened the disparity between supply
3-D seismic data - a revolution in the drilling business.and demand. Oil and gas companies are pushing to drill
Companies that choose drill sites based onmore wells while commodities are high, so there are
reprocessed 3-D seismic data are 75-80% accuratetimes when a few months pass while waiting for a rig
on average, as opposed to the 50-55% accuracy rateto drill your well. Yet in the light of the uncertainties
of older, two-dimensional data that has not beenoilmen faced in decades past, Bret Boteler counts
reprocessed. And according to Boteler, the majority ofhimself and his company very blessed.Daniel Dessinger
small, independent oil and natural gas companies stillis a writer in the Dallas / Fort Worth area. He holds a
use the old-style data, thus falling under the 55%Bachelor of Arts Degree in English from Dallas Baptist
shadow.These technologies also allow explorationUniversity. In addition to his CultureFeast blog, he writes
companies to more accurately assess potentialfor various marketing firms, corporations, and small
reserves, helping them select projects that fit abusinesses. Daniel's writing services include SEO
favorable risk/reward profile. Some of the bestfriendly interactive press releases, search optimized
projects identified would have been condemned only awebsite copy, industry-specific articles, creative ads,
few years ago due to accessibility barriers. However,copy editing, and online public relations consulting.