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Title: Investor Presentation


1
Investor Presentation
September 19, 2006
2
Disclaimer
  • This document contains forward-looking
    statements. The forward-looking statements may be
    identified by words like "plans", "expect",
    "focused", "vision" and similar expressions.
    These forward-looking statements are based on
    current conditions and assumptions and are not a
    guarantee of future events. Actual events could
    differ materially as a result of changes to the
    Companys plans and the impact of certain events,
    risks and uncertainties. All statements that
    address expectations or projections about the
    future, including statements about the Companys
    strategy for growth, expected expenditures,
    commodity prices, costs, schedules and production
    volumes, operating or financial results, are
    forward-looking statements. These statements are
    not guarantees of future performance and involve
    a number of risks, uncertainties and assumptions.

3
Investment Highlights
  • Forster, a Name Synonymous With Drilling For Over
    75 Years
  • Early Stage Pure Play Onshore Driller
  • Concentration in Forster's own backyard - Texas
    and New Mexico
  • Building a Fleet of Standardized, Modern, Bigger,
    Better Rigs In-house
  • A Planned Growth Company
  • Small Additions to Fleet Meaningful

4
Executive Summary
  • Forster is building/rebuilding a modern fleet of
    bigger, better rigs standardized as to make
    (National Drawworks and Lee C. Moore Masts) and
    rated at between 950hp and 2,000hp with 11,000 to
    20,000 foot maximum drilling depths.
  • We will concentrate our operations in own
    backyard, Texas and New Mexico, where rig
    utilization rates and day rates remain higher,
    due to prospect quality and a heavy concentration
    of natural gas resources.
  • In addition to the original capital contribution
    by Company founder F. E. Forster III, we have
    raised approximately 5M dollars from three
    equity rounds. Those funds were used to purchase
    seven drawworks, two masts, a substructure,
    rotary tables, swivels, block and hook, floor
    motors and mud pumps. This also paid for the
    construction and deployment of our first rig,
    Forster Rig No. 15, a National 50CA (MEL
    Valuation 9.5 million dollars - construction
    costs 4.5M).
  • 4th quarter 2006 - we plan to build two rigs and
    deploy one. We plan to finance this growth with
    5M in debt and 5M in equity.
  • In 2007 we plan to build seven rigs and deploy
    eight rigs. We intend to finance this growth
    with cash flow, 17M dollars in debt and 11M in
    equity.
  • By the end of 2007, we plan to seek a listing on
    a senior U.S. Stock Exchange, deploy a total of
    ten rigs and participate with our customers in
    the exploration for and production of oil and
    natural gas.

5
Market Analysis
6
Current Rig Demand
  • Growing demand for natural gas, the transition to
    unconventional gas (coal-bed methane and shale
    gas), steeper declines rates, smaller reserves
    per well, rapidly rising returns to operators,
    along with an antiquated rig fleet translates
    into current demand and long-term demand for rigs
    outpacing supply.
  • Over the past decade, up to 90 percent of all
    wells drilled in the U.S. were drilled for
    natural gas.

7
Natural Gas Demand by Sector
Trillion Cubic Feet
  • According to the Energy Information
    Administration, natural gas demand is expected to
    increase by approximately 22 in the next decade,
    from a current level of 26 Tcf per year to 32 Tcf
    per year, with the largest increases coming from
    the Industrial and Electricity Generation sectors.

8
Natural Gas Production by Sector
  • In the last decade, unconventional U.S. natural
    gas production has increased from 24 of total
    production to 41 and will continue to be the
    largest contributor to domestic production in the
    coming years.
  • Unlike the global oil market, the natural gas
    market is limited to North and South American
    production, due to the logistical constraints of
    pipeline infrastructure and the financial
    constraints of shipping LNG.

9
Unconventional Natural Gas
  • Unconventional Gas include Shales, Tight Sands
    and Coal Bed Methane. Examples include the
    Barnett Shale and the San Juan Basin.

Source Gas Technology Institute
  • They are typically resource plays, which have a
    high probability of success per well, tempered by
    severe initial decline rates, low total recovery
    and smaller reserves per well. Basically, lower
    risk and lower total production wells.
  • The net effect is more wells are needed to
    produce the same amount of gas.

10
Forecasted New Production
  • This illustrates the additional annual production
    needed to offset production decline and domestic
    demand growth.

11
Shale Reserves in the Lower 48
  • U.S. shale production is still in its infancy and
    will require decades of drilling to develop.

12
Rig Count and Forecasted Demand
  • At the beginning of the last oil boom
    (1973-1983), the active U.S. land based rig count
    was 1,100 rigs with 1,700 rigs available. By
    1983, the number of active rigs had grown to
    4,000 with over 5,500 rigs available.
  • At the beginning of the current boom 2003, the
    U.S. active land rig count was 800 rigs, with
    1,600 rigs available.
  • Fast-forward to 2005, we are to the point where
    excess supply has been cannibalized, the existing
    rig fleet is twenty-five years old, and rig
    utilization is approaching 98 in many active
    regions of the United States.
  • Raymond James estimates that there will be demand
    for an additional 850 rigs in the U.S. over the
    next five years. That represents as 50 increase
    over todays rig fleet and equates to a 7
    compounded annual growth rate.
  • It is anticipated that the current shortfall in
    drilling equipment will last for up to ten years.
    In 1981, the available domestic rig fleet peaked
    at 5,530 or approximately 4,000 more rigs than
    are available today. At the 7 compounded growth
    rate it will take twenty years to reach that
    level again.

13
Average Rig Utilization
Source Company Filings
  • Rig utilization rates have continued to increase,
    even while companies have added to their fleets.

14
Drilling Economics
  • Exploration and Production companies/operators
    pay drillers by dayrate contracts, footage
    contract (by the foot) or turn-key contact
    (negotiated payment for drilling to an agreed
    upon depth).
  • Day rate contracts are considered the most
    profitable for the contract drillers and are thus
    preferred. Over 85 of all drilling contracts are
    day rate.
  • Under a day rate contract the contractor is
    responsible for labor, insurance, rig
    maintenance, drill pipe, most consumables, "soap,
    dope and rope". The operator is responsible for
    rig mobilization and demobilization, drilling
    fluids and fuel.
  • Dayrates have doubled in the past 12 months for a
    12,000' gas well from 10,000 dollars per day to
    20,000 dollars per day. Much of the increase can
    be attributed to an increase in rig utilization
    rates in Texas from 87 percent to 96 percent.
  • As demand outstripped supply, operators were
    forced to bid-up dayrates to insure rig
    availability.
  • While contractors have experienced increased
    labor and equipment costs over the past 12
    months, much of the increase in day rates falls
    to the bottom line.

15
Drilling Economics
  • Contract dayrates have doubled over the last 12
    months and the current per day economics for a
    typical 12,000 foot gas well contract are as
    follows Dayrate 20K , Labor 7K, Maintenance,
    Insurance and Consumables 3K .......(Remember on
    a dayrate contract operator pays for fuel)
  • Dayrate 20K
  • Labor 7K
  • Maintenance, Insurance and
    Consumables 3K
  • Gross Margin
    10K (50)
  • Less GA 1K
  • EBITDA Margin
    9K (45)

16
Current Business
17
Introduction
  • FORSTER, A NAME SYNONYMOS WITH DRILLING FOR OVER
    75 YEARS.
  • Forster Drilling Corporation is a Nevada
    domiciled publicly traded (OTC BB FODL) holding
    company engaged, through its' wholly-owned
    subsidiaries, in three related business
    activities
  • Forster Drilling, Inc. Providing contract
    onshore drilling services to oil and natural gas
    exploration and production companies.
  • Forster Tool and Supply, Inc. Building new
    rotary drilling rigs and refurbishing to "like
    new" stacked rotary drilling rigs and major rig
    components.
  • Forster Exploration and Production, Inc. Joint
    Venture participation with drilling service
    customers in the exploration, development and
    production of oil and natural gas.
  • The short term goal of the Company is to build
    and/or refurbish and put into service under term
    daywork contracts 10 rotary drilling rigs in our
    own backyard, Texas and New Mexico.
  • The Company's long term goal is to build new
    and/or refurbish to "like new" and/or buy new and
    put into service under term daywork contracts 40
    rotary drilling rigs.

18
History
  • Fred Forster, Sr. started his drilling career
    with Manville and Thompson Drilling (later
    A.W.Thompson Drilling) in the early 1920s. He
    worked for A.W. Thompson for over 30 years,
    during which he made many innovations that are
    standard practices today.
  • Fred Forster, Jr. joined his father in 1948 and
    together they founded Forster Drilling in 1952,
    which grew to 10 rigs.
  • In 1966, Forster Drilling joined with Major and
    Giebel Oils of Midland to form the partnership
    Major, Giebel and Forster (later MGF Oil). MGF
    grew to 55 rigs.
  • In 1975 Fred Forster, Jr. Retired from MGF and
    was joined by his son Fred Forster III, together
    the organized the second Forster Drilling in 1977
    and acquired 4 rigs. This Company was eventually
    sold to Williams Brothers.
  • In 1983 the Forsters acquired Pulliam Drilling a
    3 rig company that was eventually sold to Wes-Tex
    Drilling.
  • First quarter 2005 Forster Drilling Corporation
    was organized pursuant to the laws of the state
    of Nevada with Fred Forster, Jr. as Chairman
    Emeritus and Fred Forster III as the Chairman and
    CEO. The Company is currently building a 7 rig
    fleet.

19
Contract Drilling Services
  • The Company's primary focus is to provide
    contract onshore drilling services to companies
    that explore for and produce oil and natural gas
    ("operators").
  • Drilling operations will focused in three major
    geographical regions (i) The Permian Basin of
    West Texas and Southeastern New Mexico (ii) The
    Barnett Shale Trend of North Texas (iii) The
    Cotton Valley/Travis Peak Trend of East Texas.
  • The Company will concentrate its operations in
    Texas and New Mexico, where utilization rates and
    dayrates remain higher, due to prospect quality
    and higher concentrations of natural gas.
  • Natural gas production is typically found deeper
    and generally requires bigger, better equipment
    more experienced crews to exploit.
  • Up to 90 of all wells drilled in the U.S. during
    the last 10 years have been drilled for onshore
    natural gas.
  • The trend in drilling depths is ever deeper. The
    Company is currently refurbishing to "like new
    condition" a standardized fleet of modern,
    bigger, better rigs.

20
Forsters Current Fleet
  • The Company is standardizing its' Fleet as to
    Drawworks and Masts National and Lee C. Moore.
    The Industry "Gold Standards".
  • The Company plans to trade its' Continental EMSCO
    A550 for a National 55
  • The Company is looking to acquire an additional
    National 55 and two National 80Bs to rebuild and
    deploy in 2007.

21
Fleet Deployment
  • Rig No. 15, National 50CA
  • Deployed September 12, 2006
  • Operator Chesapeake Energy
  • Term 365 days
  • Dayrate 16,000
  • Location of Rig New Mexico
  • Rig Condition As New
  • Appraised Value 9,500,000
  • Rig No. 12, National 55
  • Deployed
  • Operator
  • Term
  • Dayrate
  • Location
  • Rig Condition
  • Appraised Value

Work In Progress
  • Rig No. 18, National 110UE
  • Deployed
  • Operator
  • Term
  • Dayrate
  • Location
  • Rig Condition
  • Appraised Value

Work In Progress
22
Manufacturing, Refurbishing and Fabricating
  • The Company owns a purpose-built manufacturing
    facility in Odessa, Texas. The facility consists
    of five fenced acres, with controlled access, two
    15,000sq ft "rig hangers" each with twin overhead
    electric cranes for heavy equipment mobilization
    and assembly, a stand alone engine shop, complete
    machine shop, sandblasting/paint booth and
    associated offices.
  • This facility provides an all-weather environment
    with the necessary tools and equipment to build
    new rigs, refurbish/rebuild stacked rigs major
    components to "like new" and make each rig field
    ready.
  • The Company currently employs experienced
    machinists, mechanics and fabricators to build
    and/or refurbish much of each of our rig fleet
    in-house.
  • The Company can build or rebuild a rig using
    rebuilt components for approximately 1/2 the cost
    of buying a new build.

23
Exploration and Production
  • The Company's oil and natural gas exploration and
    production ("EP") activities will leverage off
    its' contract drilling activities.
  • The Companies EP will be focused in the same
    geologic basins as its' contracting activities
    The Permian Basin, The Ft. Worth Basin and The
    East Texas Basin.
  • Our hands-on experience with exploration and
    development of trends within these basins and
    teaming with customers that have a proven tract
    record in the trend will allow management to
    high-grade prospects, thus lowering risks while
    increasing returns.
  • Due to the current tight supply/high rig
    utilization rates in these Basins, management
    anticipates that the Company will be able to
    participate in high quality prospects with
    customers on an un-promoted basis.
  • The Company will participate in customers
    prospects as a time proven method of building
    assets and income not dependent on service
    contracts.

24
Location of Drilling Operations
  • The Company will offer its' contract drilling
    services and conduct its' oil and natural gas
    exploration and production activities in its' own
    backyard, Texas and New Mexico where rig
    utilization rates and day rates remain higher due
    to prospect quality and heavy concentrations of
    natural gas.
  • Permian Basin West Texas Southeastern New Mexico
    encompasses 66,000sq miles and according to the
    DOE contains estimated 29 percent of the US's
    yet-to-be-discovered oil reserves.
  • Barnett Shale Trend North Texas-Barnett Shale is
    a continuous, unconventional gas accumulation, a
    single very large gas field that encompasses
    1,000s of sq. miles. Advancements in fracturing
    technology have enabled operators to make the
    Barnett Shale the regions largest gas producer.
  • The Cotton Valley/Travis Peak Trend of East Texas
    is a continuous-type basin-center conventional
    gas system that encompasses 1,000s of sq miles.
    One of the 25 onshore provinces that USGS says
    contain 95 percent of the U.S. known and
    undiscovered gas resources. Wells drilled in the
    Cotton Valley are predominately natural gas,
    have high probability of success, have
    significant development potential and
    repeatability.

25
Competitive Strategy
  • We will concentrate our operations in our
    backyard, Texas and New Mexico where rig
    utilization rates and day rates remain higher due
    to prospect quality and heavy concentrations of
    natural gas resources.
  • Natural gas is typically found deeper and natural
    gas exploration generally requires bigger, better
    equipment and more experienced crews to drill the
    wells.
  • Rigs rated to deeper depths will demand higher
    dayrates and deliver wider profit margins than
    rigs rated to shallower depths.
  • We will build bigger, better rigs.
  • We will standardize our fleet as to make
    National Drawworks, Lee C. Moore Masts, the
    industry "gold standard.
  • Bigger, better rigs, a standardized fleet
    attracts and retains more experienced crews.
  • We will maximize our rig utilization rates by
  • Making our customers stakeholders in the Company
    and we, in turn ,will become stakeholders in our
    customers oil and natural gas exploration and
    production projects.
  • We will not build a rig without first having
    customer for it.
  • We will build the rig to the customers
    requirements.
  • We will develop in-house our own high quality
    exploration and development prospects to JV with
    industry partners and drill them with our own
    equipment.
  • Our Competitive Strategy emphasizes working close
    to home, building our fleet internally, one rig
    at a time as needed, building a standardized
    fleet of modern, bigger, better rigs, the quality
    and experience of our crews and the Forster
    75-year history to differentiate us from our
    competitors.

26
Growth Plan Use Of Proceeds
27
Looking Back
  • In addition to the original capital contribution
    by Company founder,
  • F.E. Forster III, the Company has raised
    approximately 5M from three equity rounds.
  • Those funds were used to purchase seven
    drawworks, two masts, a sub, rotary tables,
    swivels, block hooks, floor motors and mud
    pumps and the build and deployment of the
    Company's first rig, Forster Rig No. 15, National
    50CA.
  • Many of Rig 15's major components drawworks,
    mast, rotary table, swivel, block and hook, floor
    motors and mud pumps were purchased used and
    rebuilt to "as new condition".
  • Other major components the substructure, mud
    system, water tanks, and crew quarters were
    fabricated in-house.
  • The Company spent approximately 4.5M build the
    rig and purchase drill pipe. Rig 15 has been
    independently appraised by MEL Valuations at
    9.5M.
  • Rig 15 has been deployed to New Mexico pursuant
    to a 365 day term daywork contract at a dayrate
    of 16,000 with anticipated gross margins of 46.
  • The Company is currently building Forster Rig 12,
    a National 55. This Rig has been spoken for and
    will be deployed in November to the Barnett
    Shale.
  • We have accomplished a lot with a little, just
    imagine what we could do if we were fully funded.

28
Growth Plan
  • Company's short term goal is to build and deploy
    (put into service) ten rigs.
  • 4th quarter 2006-Company plans to build two rigs
    and deploy one.
  • Company plans to finance this growth through bank
    debt of 5M an equity of 5M.
  • Company 4th quartet 2006 cap-ex budget is 10M.
  • 2007-Company plans to build seven rigs and deploy
    eight.
  • Company plans to finance this growth through cash
    flow, bank debt of 17M and equity of 11M.
  • Company 2007 cap-ex budget is 45M.
  • 2008-Company plans to build five rigs and deploy
    five rigs .
  • Company plans to finance this growth through cash
    flow.
  • Company 2008 cap-ex budget is 15M.
  • Company's long term goal is to build and put into
    service forty rigs.
  • As the Company grows its' Fleet, it will seek to
    participate in customers oil and natural gas
    exploration and development projects, in order to
    build assets and cash flow independent of
    contract drilling services.

29
Valuations
30
Capitalization Table
  • Fully Diluted shares outstanding are
    approximately 42M shares.

31
Comparables
  • Forsters peers are trading at approximately
    14M in Enterprise Value (EV) per rig.

32
Asset Value Proposition
  • Total construction costs for Rig 15 were
    approximately 4.5M, (well below the industry
    average for this type of rig).
  • Current third party appraisal for the rig is
    approximately 9.5M with a 7.5M Loan Value.
  • Forster is one of the few remaining companies
    with the expertise to build a rig from the ground
    up, which results in large cost savings limits
    competition.

33
Investment Considerations
  • Company Management has demonstrated that it can
    execute.
  • Pure-play onshore driller.
  • High Growth.
  • Small additions to the fleet meaningful.
  • High Quality Assets.
  • Conservative Balance Sheet.
  • Return on investment focus.
  • The Company's short-term objective is to build
    and deploy 10 rigs.
  • Upon achieving this short-term goal, the Company
    anticipates that then "orderly liquidation value"
    of the fleet would approach 110 million dollars.
  • As a going concern The Company's public peer
    group valuation based on multiples of pro-forma,
    sales, earnings, cash flow and book value could
    approach 250 million dollars

34
Conclusions
35
Conclusions
  • Increasing domestic demand for natural gas
    coupled with lower reserves per well and steeper
    decline rates will necessitate more wells and
    more rigs.
  • The excess supply from past booms have been
    consumed and the current shortfall in drilling
    equipment could last for ten years. The Company
    has built and deployed one rig.
  • The Company plans to build two rigs and deploy
    one 4th quarter 2006, The Company plans to build
    7 rigs and deploy 8 in 2007 for a total of 10
    rigs built and deployed.
  • The Company's short-term objective is to build
    and deploy 10 rigs. Upon achieving this
    short-term goal, the Company anticipates that the
    then "orderly liquidation value" of the 10 rig
    fleet could approach 110 million dollars. As a
    going concern, the Company's peer group valuation
    based on multiples of pro-forma sales, earnings,
    cash flow and book value could approach 250
    million dollars

36
Contacts
  • Forster Drilling Corporation
  • 6371 Richmond Ave., Ste. 275
  • Houston, TX 77057
  • www.forsterdrilling.com
  • For Information Contact

Jonathan Buick jbuick_at_buickgroup.com 1.877.748.091
4
W. Scott Thompson wst_at_forsterdrilling.com 713.823.
2489
37
Appendix
38
Management
  • Fred Forster Jr., Chairman Emeritus
  • After service in WWII as a bomber instructor
    pilot, Fred Forster, Jr., joined his father at
    Thompson Drilling in 1948 as an engineer and then
    rig supervisor (tool pusher). In 1952, they
    formed Forster Drilling headquartered in Odessa,
    Texas with one rotary-drilling rig. The Company
    ultimately grew to a 10-rig fleet including a
    division operating in Arkansas. Mr. Forster
    served as President of Forster Drilling from 1952
    to 1966. In 1966, Forster Drilling consolidated
    with Major and Giebel Oils of Midland, Texas
    forming the partnership of Major Giebel and
    Forster (later becoming MGF Oil Corporation) and
    MGF Drilling Company, a wholly owned subsidiary
    of which Mr. Forster became President. MGF
    Drilling eventually grew to a 55 rig drilling
    fleet operating in five geologic provinces
    including offshore drilling barges. Mr. Forster
    was a Partner with Forster Companies from 1980 to
    1988. He has worked as an Independent Oil
    Operator since 1988-present. Drilling companies
    under Mr. Forsters direction have drilled
    several thousand wells since 1948. Drilling
    companies under Mr. Forsters direction have
    drilled several thousand wells since 1948. Mr.
    Forster received a BS in Chemical Engineering
    from The University of Texas at Austin in 1948.

39
Management
  • Fred Forster III, Chairman, President and CEO
  • Fred Forster III has served as Chief Operating
    Officer and Chairman of the Board of Directors of
    Forster Drilling Corporation since its inception
    in 2005. Mr. Forster has over 30 years of
    experience working in the land drilling and
    financial industries. He began working on
    drilling rigs during summer vacations. After
    graduating from the University of Texas at Austin
    with BBA and MBA degrees, he and his father
    acquired a 4-rig drilling company in 1977 which
    was renamed to Forster Drilling Co. Inc. He
    serviced as Vice-President and remained with the
    company after it was sold to Williams Brothers of
    Tulsa, OK. In 1981, he acquired and served as
    President of Pulliam Drilling from 1981 to1984
    and as President of D F Machine Company,
    Odessa, Texas 1980 from 1985. D F Machine
    repaired and refurbished large gas compressors
    and provided global service to its customers.
    Under Mr. Forster, annual sales doubled. The
    company was sold to Compressor Components in
    1985. Mr. Forster was Chief Executive Officer of
    the Rankin Oil Company from 1986 to 1988. Mr.
    Forster has significant experience in the
    financial services industry and was with Solomon
    Smith Barney from 1989 to 1996. He served as
    Senior Vice-President of Sunpoint Securities from
    1996 to 1998, and he was a Founder of Petroplex
    Saving in Midland, Texas in 1981. From 1998 to
    2005, Mr. Forster was an independent drilling
    consultant working on wells in the Barnett Shale
    and the Permian Basin. During this time he built
    rigs for Jelco Energy which is now part of
    Patriot Drilling. Mr. Forster holds a BBA and an
    MBA from The University of Texas at Austin, and
    has taught accounting and economics at The
    University of Texas - Permian Basin.

40
Management
  • Bud Najvar, CPA, Chief Financial Officer
  • Mr. Najvar began his career in 1979 as a staff
    auditor for Touche Ross Co. From 1980 to 1990,
    he worked for KPMG Peat Marwick in the tax
    department as well as serving as the firm's
    liaison to the Corpus Christi business community.
    Mr. Najvar then served as the Director of Tax for
    David Taylor Cadillac from July 1990 through
    March of 1991. From 1991 to 1997, Mr. Najvar was
    a sole practitioner focusing on tax and business
    work. Mr. Najvar then became a partner at May,
    Swaim Najvar in 1997, where he worked until
    2000, focusing on tax and acquisition work. In
    May of 2000 through May of 2002, Mr. Najvar was
    the Senior Tax Manager at Margolis, Phipps
    Wright, P.C. In May of 2002, Mr. Najvar became a
    partner in Najvar Najvar, CPAs. Mr. Najvar is a
    certified public accountant who received his
    B.B.A. degree from the University of Texas in
    1979.
  • Keith Atwood, Senior Vice-President Drilling
    Operations
  • Keith Atwood has wide-ranging experience in the
    oil and natural gas industry. He has held the
    primary responsibility and supervision of the
    drilling and production of over 3,000 wells in 10
    states. He began his career working as an
    Assistant Drilling Superintendent for fathers
    Abilene, Texas based drilling company from 1973
    to 1975. Mr. Atwood worked with Otis
    Engineerings special services division from 1975
    to 1977, and he worked with Gearhart-Owens in
    open hole and cased hole operations from 1977
    to1979. Mr. Atwood was Operations Manager for
    Union Exploration from 1980 to 1983. He was
    Operations Manager with Mussleman, Owen, and King
    from 1983 to 1994, and served as Senior
    Vice-President of Operations with Costilla
    Petroleum and Costilla Energy, Inc., from 1994 to
    1999. Recently he has been Contract Operations
    Manger for Atlantic Operating and Compass
    Operating from 1999 to 2005. Mr. Atwood attended
    Southwest Texas State University.

41
Management
  • W. Scott Thompson, Secretary, Treasurer and
    Director
  • Scott Thompson has 30 years of experience in
    developing petroleum and financial companies. Mr.
    Thompson began his career as Administrative
    Assistant to Preston Smith, Governor of Texas
    from 1971 to 1974. He was a Partner of Geosearch
    in 1977, and he served as Chief Operating Officer
    and Director, of American Crude, Inc. from
    19781982. Mr. Thompson served as President and
    Director of Great Western Production Company,
    Inc. from 1983 to 1986. He served as Officer and
    Director of Harris-Forbes, Inc. between 1983 and
    1993. Mr. Thompson was President and Director of
    Eurotrade Financial Inc. from 1993 to 2005. He
    returned to Harris-Forbes, Inc. in 2005, where he
    is currently acting as President and Director.
    Mr. Thompson is Vice President and Director of
    Process Technology Systems, Inc., he has served
    as President and Director of Clear Creek Oil
    Gas, Inc. since 2001, and he is also currently a
    Director of Oilsands Quest Inc. Mr. Thompson
    holds a BBA from The University of Texas at
    Austin and completed work at the Graduate School
    of Business at University of Texas at Austin.
  • Dean Willis, Drilling Superintendent
  • Forty-five years ago, Dean Willis began his
    career in the oilfield as a Floor-Hand on a
    Forster Drilling Co., Inc. rig. Mr. Willis has
    experience at every position on a drilling rig.
    Prior to joining the Forster team for the second
    time, Mr. Willis was an Assistant Drilling
    Superintendent for Adobe Drilling in Odessa. Mr.
    Willis has drilled thousands of wells in Texas
    and New Mexico as a floor hand, derrick man,
    driller, or rig supervisor (tool pusher). His
    depth of experience is invaluable to the Company.

42
Management
  • Cullen Hudnall, General Manager - Fabrication,
    Refurbishing, and Machining
  • Employee of Penco Machine from 1986 to 1995. Mr.
    Hudnall began his career as machinists
    journeyman and ultimately became general manager
    and part owner. Penco specialized in repair and
    remanufacture of oilfield drilling rig
    components. After retirement of Pencos co-owner,
    Mr. Hudnall founded Petroplex Machining and
    Supply, Inc., a drilling component fabricator and
    supply house, from 1995 to January 2005. Mr.
    Hudnall joined Forster immediately after
    liquidating Petroplex in 2005.
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