Mc Coy Petroleum Corporation9342 E Central Ave, Wichita, Kansas, United States

As an industry leader, MPC has consistently ranked in the top 20 most active independent operators of oil and gas in the state of Kansas.

History

Roger McCoy and his father, Harvey H. McCoy drilled their first well in 1970 and started a family legacy – McCoy Petroleum Corporation. Headquartered in Wichita, Kansas, the company has grown from two men with a vision to a team of exploration professionals, including geological, geophysical, engineering, land, accounting, production, and exploitation staff who manage operated and non-operated oil and gas properties for MPC and its participants.  From the 1970s through the mid-1980s, MPC concentrated its drilling and production operations in South Central Kansas. Several new fields were discovered and developed. This activity occurred primarily in the Mississippian age subcrop play through Kingman, Harper, and Barber Counties, Kansas. Since then, MPC has focused on the development of projects in Western Kansas and Oklahoma. During the late 1980s and mid 1990s, MPC was a leader in establishing the “Deep Hugoton” play in Southwestern Kansas, and was involved in over 1,000,000 acres covering various projects within the play area. MPC has drilled and participated in over 400 wells in the play since 1987, with over 60% completed as producers. Well reserves average over 100,000 EEB per well.  From the Mid 1990s until today, MPC re-focused much of its efforts towards NW Kansas. MPC has participated in nearly 1000 square miles of 3-D acquisition conducted on over 1,000,000 acres of leasehold. Exploration and development efforts continue in this area today. MPC continues to be a leader in exploration and drilling activity throughout Western Kansas.  MPC has also participated in, or operated projects outside of the Mid-Continent in states including Alabama, California, Louisiana, New Mexico, and Texas.

An active and successful Kansas exploration company for over 40 years, MPCs drilling history demonstrates excellent results from year to year. Company exploration and production performance consistently meets or exceeds industry averages.

• MPC has established over 35 million energy equivalent barrels as a result of its active exploration and development programs.
• Since the mid-1980s MPC has been consistently ranked among the top twenty companies in the number of wells drilled, wells completed, reserves established, and barrels produced in the state of Kansas.
• MPC has experienced overall average success rates of over 50% and reserve replacement costs much lower than industry peers.

Vision

McCoy Petroleum Corporation is an "Oil and Gas Exploration, Production, and Acquisition Company".  Exploration efforts generated by the company for over 40 years have consistently proven successful.  The strong geological, geophysical, and engineering background of management is one of MPCs strongest assets, and will positively impact the future growth and economic success of the company and its investors.  MPC will seek to manage risk with a balanced portfolio of exploration and development projects.  MPC continues to establish new production through its exploration efforts.  While exploration and development will remain the cornerstone of MPCs future success, MPC also seeks exploration and exploitation opportunities through mergers, and the acquisition of producing properties.

MPC will continue to execute its strategies by seeking out, forming, and maintaining alliances and relationships with "like minded" individuals and organizations.  MPCs success has ultimately hinged on its ability to develop and maintain long-term relationships with industry peers, individual and institutional investors, and service providers.  Utilizing its creative ability, MPC will continue to be a leader in identifying and exploiting niche plays, rather than waiting to follow the pack to the next "hot play".  This strategy has allowed MPC to maintain very low reserve replacement cost relative to its peers.  Management believes these strategies and maintaining a "right sized" organization will allow MPC to maintain its ability to continue to have a competitive advantage in the arenas it chooses to play.

Investments in Oil and Gas

MPC is continually developing projects within various play areas. MPC retains a significant equity position in these projects (usually 25-75%), with the balance offered to knowledgeable investors and industry participants. While MPC has enjoyed long lasting relationships with these participants, opportunities for participation in various projects do become available from time to time.  MPC has developed an extensive proprietary database. Significant regional geologic work, seismic modeling, statistical analysis, and engineering is conducted in the development of play concepts prior to prospecting.  When MPC develops a typical project, acreage is secured based on specific geologic criteria. Once the acreage is secured a prospectus is constructed. The prospectus includes the following; a geologic, land, and engineering summary, geologic and land maps, an estimate of costs in the form of an Authority For Expenditure (AFE), a participation agreement and joint operating agreement (JOA).

MPC manages drilling risk by utilizing 3-D seismic on most of the projects it develops. MPC has participated in an extensive number of 3-D projects and utilizes that experience and analogs in new project development. MPC owns License to an extensive 2-D and 3-D database in Kansas and surrounding areas.  Projects target long life reserves (15-20 years+) and quick pay-outs (36 months or less), rates of return are expected to be no less than 20%.

A typical sequence of events for drilling an MPC operated well:

• MPCs Land Manager will contact the surface owner of the land upon which we intend to drill a well, usually well in advance of 15 days prior to the anticipated move in date.
• MPCs Field Superintendent and/or the contracted drilling company will contact the surface owner (or the owners tenant) to discuss routes of ingress/egress to the well site, and other logistical surface issues, including the construction of the drilling pad and drilling pits.
• After the completion of the drilling process, our contracted excavation company will restore the surface as close as possible to the condition prior to drilling. The surface owner should be mindful of the weathers impact on the timing of the restoration.
• MPCs Land Manager will contact the surface owner and/or tenant to discuss any damage to growing crops after the restoration process has been completed.