Current Activities

DPC's initial success can primarily be attributed to its ability to acquire and enhance properties. The strategy was to purchase working interest in properties with upside potential through drilling of new wells or work over of existing wells. This strategy not only incorporates current technology such as 3-D seismic but most importantly, involves bringing DPC's thorough and sensible operating capabilities to bear on under-performing assets. As the company expanded its operation, significant holdings were developed in several areas of South Texas and growth has become less dependent upon acquisition of producing properties and more a function of successful drilling efforts. The current drilling program is primarily fueled by a large 3D data base that totals well over 500 square miles of data in 9 South Texas counties. Major activities in several of these counties are summarized below:

Hidalgo County

DPC's Hidalgo County operations began more than 15 years ago when a farmout well was drilled in the North Weslaco Field. Additional producing wells were purchased and new wells drilled until the production in the field was increased by ten fold. Over time field production has declined; however, these operations were primarily in non-pressured sands, and after acquisition of a large 3D data base over its producing leases and the surrounding areas, a program of drilling deeper wells has commenced. The 3D program has identified a number of interesting targets and drilling has already increased Company production in the area beyond its historical highs. The company is currently working data in other areas of Hidalgo and anticipates many additional drilling prospects to be generated.

Karnes County

More than 10 years ago DPC acquired three wells producing 1.0 Mmcfgpd in the Kenedy, SW Field. Production was enhanced by the drilling of a fourth well and later by drilling horizontal laterals from two of the original wells. In 1998 production peaked at 2.4 Mmcfgpd, and declined to about 0.5 Mmcfgpd until recently when a newly drilled horizontal well was placed on line bringing company production back above its historical highs.

Kleberg County

Until 2003 the companies production was from shallow oil and gas wells and never exceeded more than about 500 Mcfgpd. In 2003 DPC acquired a 3D data base which has resulted in 2 discoveries and increased the company Kleberg County production over 2.0 Mmcfgpd. The data base is continuing to be worked to pick development locations and to generate new prospects.

Wharton County

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