         
         
         
         
         
         
         
                                      F_O_R_W_A_R_D_
         
         
              The domestic oil industry has experienced a gigantic and 
         classic business cycle over the past 15 years.  Exploratory 
         optimism evolved from the 1973 OPEC oil embargo and peaked in the 
         early 1980s.  From the peak to present, the oil industry has 
         declined into a price induced depression, instilling fear in many 
         explorationists and investors alike.  As in any other market, 
         late comers in the booming oil market were hurt badly by high 
         costs and declining prices.  Conversely, early participants in a 
         new market cycle have the greatest potential to gain.
         
              This paper is presented to refute misleading and erroneous 
         concepts regarding today's economics for oil exploration.  Oil 
         price alone does not determine profitability in the domestic oil 
         industry.  Exploration costs are an equally important factor.  
         Confusion and fear have arisen from the lack of factual 
         information regarding bottom line profitability.
         
              OPEC has essentially now recouped its world market share of 
         oil, which was the original strategy.  Information presented 
         herein is intended to help clear up much misconception 
         surrounding the domestic oil industry.  The explorationist and 
         investor equipped with facts about bottom line profitability in 
         oil is best prepared for ultimate economic success.
         
         
         
         
                                            James W. Cammack
                                            CAMMACK AND CAMMACK
                                            200 N. Harvey, Suite 410
                                            Oklahoma City, Oklahoma 73102
         
                                            Phone: (405)239-2031
         
          
         
         
                                 T_H_E_ _B_E_S_T_ _O_F_ _T_I_M_E_S_
         
                                 A_ _S_C_E_N_A_R_I_O_ _O_N_ _O_I_L_
         
                           (30 Year Historical Analysis)
         
         
         
                                    I_N_T_R_O_D_U_C_T_I_O_N_
         
              Today's economic climate offers an excellent investment 
         opportunity in the search for new domestic oil reserves.  An 
         historical prospective of economics shows that oil exploration 
         has more potential for profitability than at any other time with-
         in the past 30 years.  The present romance in oil exploration is 
         revealed through the comparison of historical oil industry facts.
         
              Successful investors must be concerned with price AND cost 
         when exploring for oil.  Return On Investment, not just oil 
         price, is the major factor in determining potential profitabili-
         ty.
         
         
                                     E_C_O_N_O_M_I_C_S_
         
              Primary indices that determine the economic feasibility of 
         oil exploration are:  (A) Cost of drilling and completion, and 
         (B) Price of oil over the productive life of the project.  Evalua-
         tion costs, acquisition expense, operations, future value dis-
         counting, etc. are other factors that must be formulated into 
         each venture.
         
              The costs of drilling and completion are accurately deter-
         mined by pricing through contractors and vendors.  The future 
         price of oil over the life of a project is not known.  Price is, 
         and always has been, a subjective quantity.  Oil prices have 
         revolved around OPEC actions for the past 15 years (supply versus 
         world demand).  No change in control is foreseeable.
         
              Historical evaluation of the domestic industry requires that 
         certain criteria be used to normalize the variable effects of tax 
         and inflation on oil values and exploration costs.
         
         1)   A thirty year historical prospective is selected from
              1959 through 1988.  This time span includes the 15 year oil
              price macro-cycle influenced by the OPEC Cartel plus the
              previous 15 year period regulated by the Texas Railroad
              Commission.  Cost figures prior to 1959 are not readily
              available.
              
         
         
         2)   The producer price index (PPI) discounts inflation and
              establishes a constant dollar value base from which
              historical comparisons are made.
              
         3)   The oil price is reduced by the amount of windfall profit
              tax during it's effect on well head price.
         
              Various industry statistics used are from The "Joint Associa-
         tion Survey of the U.S. Oil and Gas Producing Industry" Annual, 
         American Petroleum Institute.  The American Petroleum Institute, 
         and Joint Participants have compiled data from its sources.
         
         
         OIL PRICE:
         
              The price of oil is one factor in economic evaluation.  
         Annualized oil prices for domestic crude oil over a 30 year 
         period are shown in current and constant dollars on C_h_a_r_t_ _1_.  
         CURRENT PRICE is in inflated dollars.  CONSTANT PRICE is 
         calculated in 1967 = 100 dollars.  Prices are adjusted for 
         windfall profits taxes (Tier 3, New Oil) effective 1980 through 
         1985.  The 1989 annual wellhead price is estimated at $18.00 in 
         current dollars and $5.28 in constant dollars.  Constant price, 
         cost and windfall profit tax adjustment establish standardized 
         values for historical comparison and evaluation.
         
              The 30 year price of oil in current dollars is illustrated 
         by F_i_g_._ _1_-_A_.  This curve is deceptive when used for historical 
         price comparison.  F_i_g_._ _1_-_B_ is corrected for inflation and wind-
         fall profits tax.  All oil prices are constant values relative to 
         the 1967 oil price. 
         
              The constant oil price curve exhibits four distinct periods 
         of change.  1959-1973 reflects a relatively "S_T_A_B_L_E_" period for 
         oil prices under the Texas Railroad Commission.  A "P_L_A_T_E_A_U_" is 
         seen for 1974-1979.  This period marks the beginning of OPEC 
         Cartel price control.  The "B_O_O_M_" of 1980-1985 was caused by an 
         imbalance in world oil supply with OPEC controlling prices.  A 
         double "B_O_T_T_O_M_" period in 1986-1988 was caused by OPEC regaining 
         quota through price reduction.  "T_O_D_A_Y_", OPEC has regained domi-
         nance and oil prices are recovering.
         
         
         WELL COMPLETION COST:
         
              The cost of drilling and completion to produce oil is 
         another factor in economic evaluation.  Annualized per foot 
         completion costs are listed in current and constant dollars 
         (C_h_a_r_t_ _2_).  Costs for 1988 and 1989 are extrapolated.
         
              The 30 year per foot costs for completion are illustrated by 
         F_i_g_._ _2_-_A_ and 2_-_B_ in current and constant dollars, respectively. 
         
         
         The constant dollar curve (F_i_g_._ _2_-_B_) shows costs peaking at 
         $26.00 in 1982 and declining to an estimated $12.77 in 1989.  
         Completion costs have reached a new 22 year low in 1989.
         
         
         OIL WELL PAYOUT:
         
              The Return on Investment is a function of price and cost.  
         The historical relationship between oil prices and completion 
         costs is a standard measure for relative profitability.
         
              The completed oil well cost and oil price graphs have simi-
         lar profiles.   A comparison of oil well completion cost to oil 
         price shows that the cost peak of 1982 lagged the price peak by 
         approximately one year.  A reverse lag of lower cost versus 
         higher price is now apparent.
         
              A comparison of constant dollar oil prices and constant 
         dollar completed oil well costs are listed on C_h_a_r_t_ _3_.  PAYOUT is 
         defined as the yield in barrels of oil per foot that is required 
         to pay for the cost of a completed oil well.  Barrels of oil per 
         foot for payout (BO/ft-payout) is the  completion cost divided by 
         the oil price.  Less BO/ft-payout equates to better potential 
         Return on Investment.
         
              F_i_g_._ _3_ illustrates BO/ft-payout over the past 30 years.  The 
         30 year average for payout is 4.01 BO/ft.  Payout varies from a 
         maximum of 5.17 BO/ft in 1972 to a minimum of 2.46 BO/ft in 
         1984.  Today's figure is at a 31 year low of 2.42 BO/ft.  The 
         pre-OPEC (Texas Railroad Commission) period had an average payout 
         of 4.49 BO/ft compared to 3.53 BO/ft under OPEC control, reflect-
         ing a 21% improvement between the former and latter periods.
         
              The BO/ft-payout assumes 100% success and stable oil price 
         during payout.  In practical application, risk must be calculat-
         ed.  Other costs such as acquisition, operations, and future 
         value discounting must also be included.  Ultimate potential 
         Return On Investment is related to all of the above.
         
              A relative cost, price and payout rate comparison of the 
         various periods is illustrated on C_h_a_r_t_ _3_.
         
         
         COMPOSITE PRICE-COST-PAYOUT:
         
              F_i_g_._ _4_ and C_h_a_r_t_ _4_-_A_ and 4_-_B_ depict the status of oil price, 
         drilling and completion cost and BO/ft-payout for the "Stable", 
         "Plateau", "Boom", "Bottom" and "Today" periods.  This composite  
         of domestic oil industry economics shows "Today" to be superior 
         to the other periods.  COST, PRICE AND BO/FT-PAYOUT RELATIONSHIPS 
         ARE CENTRAL TO UNDERSTANDING TODAY'S ECONOMIC MERITS.
         
         
                                   M_I_S_C_E_L_L_A_N_E_O_U_S_
         
         OIL WELL FOOTAGE:
         
              C_h_a_r_t_ _5_ and F_i_g_._ _5_ show the total annual footage drilled for 
         oil.  Data includes completions and dry holes.  The footage 
         drilled for oil in 1988 is at a 14 year low.  The 1986-1988 
         "Bottom" average footage is at a 30 year low compared to the 
         other periods.
         
         
         TAX EXPENSE:
         
              Taxation has an important bearing on economics.  C_h_a_r_t_ _6_ is 
         a comparison of taxes (excluding income taxes) versus total esti-
         mated U.S. exploration, development and producing expenses.
         
         The change in the percentage of taxes to total expenses is shown 
         on F_i_g_._ _6_.  The percentage of tax to total expense more than 
         doubled in years 1981 through 1985, reflecting the effect of 
         windfall profits taxes on expenses.  1986 shows a pre-windfall 
         tax norm of 9%.
         
              In the past 30 years the maximum Federal income tax bracket 
         has been decreased from 90% to 33%. reflecting a 63% rate reduc-
         tion. The Federal depletion allowance is still intact but reduced 
         from 27% to 15%.  Various other tax allowances have been revised 
         over time.  Each investment entity must make its own evaluation 
         for after-tax return.  The after-tax net Return On Investment can 
         then be determined.
         
         
                                      S_U_M_M_A_R_Y_
         
              Renunciation of certain generally accepted truisms regarding 
         today's economics of domestic oil is appropriate.  Current 
         economic opportunities do abound in oil!
         
              Oil well payout rate today is at a 30 year high, and 11% 
         better than the 1980-1985 "Boom" average.  Footage drilled is 
         lower than any previous period in 30 years.  Today's constant 
         price of oil, excluding the 1980-1985 anomaly, is at a 30 year 
         high and drilling-completion cost is lower than any other period 
         in 30 years.  Oil price today is 17% better than the 1974-1979 
         "Plateau" price while payout rate between these periods is up 
         33%.  The windfall profits tax no longer exists.  Income taxes 
         vary among taxpayers, but the maximum bracket tax rate has de-
         creased 63% on income.  Oil still has a 15% depletion allowable.
         
         
              Oil prices are competitive with total U.S. industry (PPI) 
         prices.  The real (constant) price received for oil in 1989 is 
         about 78% higher than total U.S. product prices since 1959.
         
              This is THE BEST OF TIMES, not the worst of times, FOR PROS-
         PERITY in the oil industry.  Oil price phobia has diminished 
         exploration activity (and exploration costs) to a depressive 
         level.  The golden opportunity for profits in oil exploration 
         today has not been surpassed in several decades!
         
                                      C_H_A_R_T_ _1_
         
         
                  AVERAGE ANNUAL WELLHEAD PRICE OF U.S. CRUDE OIL
                          IN CURRENT AND CONSTANT DOLLARS
         
                        After      Producer                After
                        WFPT      Price Index     Price    WFPT
               Price in Tier 3  All Commodities    in      Tier 3   Period
         Y_e_a_r_ C_u_r_r_e_n_t_ _$_ N_e_w_ _o_i_l_  _(_1_9_6_7_ _=_ _1_0_0_)_ _ _ C_o_n_s_t_a_n_t_ _$_ N_e_w_ _o_i_l_   _A_v_g_._ _
                                                   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
         1959    2.90                 94.8         3.06
           60    2.88                 94.9         3.03
           61    2.89                 94.5         3.06
           62    2.90                 94.8         3.06
           63    2.89                 94.5         3.06
         1964    2.88                 94.7         3.04
           65    2.86                 96.6         2.96             S_t_a_b_l_e_
           66    2.88                 99.8         2.89              $2.96
           67    2.92                100.0         2.92
           68    2.94                102.5         2.87
         1969    3.09                106.5         2.90
           70    3.18                110.4         2.88
           71    3.39                113.9         2.98
           72    3.39                119.1         2.85
           73    3.89                134.7         _2_._8_9_ _ _ _ _ _ _ _ _ _ _ _
         1974    6.74                160.1         4.21
           75    7.56                174.9         4.32
           76    8.14                182.9         4.45            P_l_a_t_e_a_u_
           77    8.57                194.2         4.41              $4.50
           78    8.96                209.3         4.28
         1979   12.51                235.6         _5_._3_1_ _ _ _ _ _ _ _ _ _ _ _
           80   21.59     20.35      268.7         8.03      7.57
           81   31.77     27,96      293.4        10.83      9.53
           82   28.52     25.92      299.3         9.53      8.66     B_o_o_m_
           83   26.19     24.26      303.1         8.64      8.00    $8.17
         1984   25.88     24.19      310.3         8.34      7.80
           85   24.09     23.03      308.8         _7_._8_0_ _ _ _ _ _ _7_._4_6_ _
           86   12.51                300.9         4.16             B_o_t_t_o_m_
           87   15.41                307.7         5.01              $4.34
           88   12.57                324.7         _3_._8_7_ _ _ _ _ _ _ _ _ _ _ _
         1989   18.00*               340.9**       5.28*             T_o_d_a_y_
                                                                    $5.28*
         
              * Estimated average oil price.
             ** Estimated average Producer Price Index.
         
         Source:
         Price in Current Dollars, "J_o_i_n_t_ _A_s_s_o_c_i_a_t_i_o_n_ _S_u_r_v_e_y_ _o_f_ _t_h_e_ _U_._S_._ _
         P_r_o_d_u_c_i_n_g_ _I_n_d_u_s_t_r_y_ _A_n_n_u_a_l_" American Petroleum Institute, U.S. 
         Energy Information Administration.
         Producer Price Index, U.S. Bureau of Labor Statistics.
         Price in Constant Dollars, Period Avg. and After Windfall Profit 
         Tax (Tier 3, New Oil) after M_i_l_l_e_r_s_ _O_i_l_ _&_ _G_a_s_ _F_e_d_e_r_a_l_ _I_n_c_o_m_e_ _
         T_a_x_a_t_i_o_n_ computed by James W. Cammack.
         
                                      C_H_A_R_T_ _2_
         
         
                  ESTIMATED OIL WELL DRILLING AND COMPLETION COSTS
                                                            (ONSHORE U.S.)
                          IN CURRENT AND CONSTANT DOLLARS
         
                                          Producer      Average
                Avg. Depth  Avg. Cost    Price Index     Cost 
                Per Well    Per Foot   All Commodities  Per Foot    Period
         Y_e_a_r_    _(_f_t_._)_ _ _ _ _  C_u_r_r_e_n_t_ _$_   _(_1_9_6_7_ _=_ _1_0_0_)_ _ _  C_o_n_s_t_a_n_t_ _$_   _A_v_g_._ _
                                                           _ _ _ _ _ _ _ _
         1959     3753         13.07         94.8          13.79
           60     3878         11.26         94.9          11.87
           61     3821         12.18         94.5          12.89
           62     4146         12.52         94.8          13.21
           63     3812         12.15         94.5          12.86
         1964     3719         11.77         94.7          12.43
           65     4062         11.71         96.6          12.12    S_t_a_b_l_e_
           66     3925         12.40         99.8          12.42    $13.28
           67     3781         12.89        100.0          12.89
           68     3984         13.49        102.5          13.16
         1969     4276         14.99        106.5          14.08
           70     4306         15.59        110.4          14.12
           71     4116         16.01        113.9          14.06
           72     4330         17.56        119.1          14.74
           73     4462         19.65        134.7          _1_4_._5_9_ _ _
         1974     3874         25.59        160.1          15.98
           75     3979         31.49        174.9          18.00
           76     3953         33.93        182.9          18.55   P_l_a_t_e_a_u_
           77     4052         36.82        194.2          18.96    $19.09
           78     4093         44.10        209.3          21.07
         1979     4076         51.73        235.6          _2_1_._9_6_ _ _
           80     4045         60.62        268.7          22.56
           81     4138         75.38        293.4          25.69
           82     3958         77.81        299.3          26.00      B_o_o_m_
           83     3831         63.27        303.1          20.87    $22.23
         1984     3888         59.42        310.3          19.15
           85     3993         59.00        308.8          _1_9_._1_1_ _ _
           86     4070         56.98        300.9          18.93    B_o_t_t_o_m_
           87     4134         49.23        307.7          16.00    $16.36
           88     4134         45.96*       324.7          _1_4_._1_5_*_ _
         1989     4134         43.54*       340.9**        12.77*    T_o_d_a_y_
                                                                   $12.77*
         
              * Estimated drilling and completion costs.
             ** Estimated average Producer Price Index.
         
         Source:
         Average Depth and Average Cost per Foot in Current Dollars, 
         "J_o_i_n_t_ _A_s_s_o_c_i_a_t_i_o_n_ _S_u_r_v_e_y_ _o_f_ _t_h_e_ _U_._S_._ _P_r_o_d_u_c_i_n_g_ _I_n_d_u_s_t_r_y_ _A_n_n_u_a_l_", 
         American Petroleum Institute.
         Producer Price Index, U.S. Bureau of Labor Statistics.
         Average Cost Per Foot Constant Dollars and Period Avg. computed 
         by James W. Cammack.
         
                                      C_H_A_R_T_ _3_
         
         
                          BARRELS OF OIL PER FOOT DRILLED
                               TO PAY OUT AN OIL WELL
                           (Drilling and Completion only)
         
                                   Well Costs*         Payout
                  Oil Price*     (Onshore, U.S.)    in Bbls. Oil
                  Constant $       Constant $      Per Ft. Drilled  Period
         Y_e_a_r_    (_1_9_6_7_ _=_ _1_0_0_)_     (_1_9_6_7_ _=_ _1_0_0_)_     (_D_r_l_g_._ _&_ _C_o_m_p_._)_   _A_v_g_._ _
                                                         _ _ _ _ _ _ _ _ _ _
         1959         3.06             13.79             4.51
           60         3.03             11.87             3.92
           61         3.06             12.89             4.21
           62         3.06             13.21             4.32
           63         3.06             12.86             4.20
         1964         3.04             12.43             4.09
           65         2.96             12.12             4.09       
S_t_a_b_l_e_
           66         2.89             12.42             4.30         4.49
           67         2.92             12.89             4.41
           68         2.87             13.16             4.59
         1969         2.90             14.08             4.86
           70         2.88             14.12             4.90
           71         2.98             14.06             4.72
           72         2.85             14.74             5.17
           73         2.89             14.59             _5_._0_5_ _ _ _ _ _
         1974         4.21             15.98             3.80
           75         4.32             18.00             4.17
           76         4.45             18.55             4.17      P_l_a_t_e_a_u_
           77         4.41             18.96             4.30         4.24
           78         4.28             21.07             4.92
         1979         5.31             21.96             _4_._1_4_ _ _ _ _ _
           80         7.57             22.56             2.98
           81         9.53             25.69             2.70
           82         8.66             26.00             3.00         B_o_o_m_
           83         8.00             20.87             2.61         2.72
         1984         7.80             19.15             2.46
           85         7.46             19.11             _2_._5_6_ _ _ _ _ _
           86         4.16             18.94             4.55       B_o_t_t_o_m_
           87         5.01             16.00             3.19         3.77
           88         3.87             14.15             _3_._6_6_ _ _ _ _ _
         1989         5.28             12.77             2.42        T_o_d_a_y_
                                                                      2.42
         
              * Oil Price and Well Cost (with estimates) from
                Charts 1 and 2.
         
         Source:
         Payout in Bbls. Oil Per Ft. Drilled and Period Avg. computed by 
         James W. Cammack.
         
                                     C_H_A_R_T_ _4_-_A_
         
         
                       PRICE, COST AND PAYOUT RATE COMPARISON
                                   OVER 30 YEARS
         
                                Constant    Constant
                                  Oil        Comp.       BO/ft.
                    P_e_r_i_o_d_       P_r_i_c_e_       C_o_s_t_        P_a_y_o_u_t_
         
                    Stable        2.96       $13.28       4.49
         
                    Plateau      $4.50       $19.09       4.24
         
                    Boom         $8.17       $22.23       2.72
         
                    Bottom       $4.34       $16.36       3.77
         
                    Today        $5.28       $12.77       2.42
         
         
         
         
         
                                     C_H_A_R_T_ _4_-_B_
         
         
                         PRICE, COST AND PAYOUT RATE TODAY
                           COMPARED TO THE OTHER PERIODS
                               (Percentage of Change)
         
         
                         |    Today's        Today's         Today's
              Comparison |     Oil            Comp.          BO/ft.
               P_e_r_i_o_d_    |    P_r_i_c_e_           C_o_s_t_           P_a_y_o_u_t_
                         |
               Stable    |  78% higher       4% less       46% better
                         |
               Plateau   |  17% higher      33% less       43% better
                         |
               Boom      | <35% lower>      43% less       11% better
                         |
               Bottom    |  22% higher      22% less       36% better
                         |  
         
         Source:
         Price, Cost and Payout Rate compiled from Charts 1, 2 and 3.
         Chart 4-B computed by James W. Cammack.
         
                                      C_H_A_R_T_ _5_
         
         
                        TOTAL ANNUAL FOOTAGE DRILLED FOR OIL
                             COMPLETIONS AND DRY HOLES
                                 (millions of feet)
         
                                      Total Footage                 Period
           Y_e_a_r_                        _ _ _f_o_r_ _O_i_l_ _ _ _                  _A_v_g_._ _
                                           _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
           1959                            174.1
             60                            152.7
             61                            151.4
             62                            155.6
             63                            148.7
           1964                            152.6
             65                            145.7                    S_t_a_b_l_e_
             66                            122.8                     129.1
             67                            111.3
             68                            112.0
           1969                            115.8
             70                            105.6
             71                             95.5
             72                             99.1
             73                            _ _9_3_._9_ _ _ _ _ _ _ _ _ _ _ _ _
           1974                            108.0
             75                            127.2
             76                            128.9                   P_l_a_t_e_a_u_
             77                            142.4                     134.9
             78                            150.3
           1979                            _1_5_2_._4_ _ _ _ _ _ _ _ _ _ _ _ _
             80                            202.1
             81                            279.3
             82                            251.9                      B_o_o_m_
             83                            219.0                     239.8
           1984                            257.5
             85                            _2_2_9_._2_ _ _ _ _ _ _ _ _ _ _ _ _
             86                            127.9                    B_o_t_t_o_m_
             87                            111.9                     116.2
             88                            _1_0_8_._9_*_ _ _ _ _ _ _ _ _ _ _ _
           1989                    (Data not available)             Today
         
         
              *Petroleum Information Quarterly Reports
         
         Source:
         "J_o_i_n_t_ _A_s_s_o_c_i_a_t_i_o_n_ _S_u_r_v_e_y_ _o_f_ _t_h_e_ _U_._S_._ _o_i_l_ _a_n_d_ _G_a_s_ _P_r_o_d_u_c_i_n_g_ _I_n_d_u_s_-
         t_r_y_ _A_n_n_u_a_l_"_, American Petroleum Institute, Independent Petroleum 
         Association of America, Mid-Continent Oil and Gas Association.
         Total footage For Oil and Period Avg. computed by James W. 
         Cammack.
         
                                      C_H_A_R_T_ _6_
         
         
                    U.S. ESTIMATED EXPENDITURES FOR EXPLORATION
                                 VERSUS TAXES PAID
         
                                          Total
                       Taxes*         Expenditures         Tax / Total
           Y_e_a_r_     (_M_i_l_l_i_o_n_s_ _$_)_      (_M_i_l_l_i_o_n_s_ _$_)_         (_P_e_r_c_e_n_t_a_g_e_)_
         
           1972         (Data not available prior to 1973)
             73        924.6            12,694.2               7.3
             74      1,534.1            18,706.1               8.2
             75      1,746.1            18,558.7              10.6
             76      1,897.9            22,558.7               8.4
           1977      2,098.9            25,725.1               8.2
             78      2,379.0            30,373.2               7.8
             79      2,750.4            44,686.4               6.2
             80      4,564.9            62,655.0               7.3
             81     20,557.5            98,635.7              20.8
           1982     14,008.3            91,784.3              15.3
             83     16,860.0            81,923.0              20.6
             84     14,895.0            81,965.0              18.1
             85     11,426.0            77,784.0              14.7
             86      4,317.0            48,040.0               9.0
           1987         (Data not available after 1986)
         
         
              *excludes income tax.
         
         Source:
         Taxes and Total Expenditures, "J_o_i_n_t_ _A_s_s_o_c_i_a_t_i_o_n_ _S_u_r_v_e_y_ _o_f_ _t_h_e_ _
         U_._S_,_ _O_i_l_ _a_n_d_ _G_a_s_ _P_r_o_d_u_c_i_n_g_ _I_n_d_u_s_t_r_y_ _A_n_n_u_a_l_", American Petroleum 
         Institute, U.S. Department of Commerce, Bureau of Census: Annual 
         Survey of Oil and Gas.
         Tax / Total Percentage computed by James W. Cammack.
         
         
         
                                     REFERENCES
         
         
         American Petroleum Institute.  May, 1989.  Basic Petroleum Data 
         Book.  Petroleum Industry Statistics.  Vol. IX-No.2: Section III- 
         Table 9-9a, Section V-Table 10-10a, Section VI-Table 1-1a.
         
         Houghton, James L., and others.  1981.  Millers Oil & Gas Federal 
         Income Taxation.  Commerce Clearing House, Inc., Nineteenth Edi-
         tion: 32-1 through 32-17.
         
         
         
         
                                  ACKNOWLEDGMENTS
         
         
              Appreciation is expressed to Mr. John A. Taylor, ComQuest 
         Expl. Co., Oklahoma City, Oklahoma for his help in editing of 
         manuscript.  Thanks are extended to Mr. A. R. Tiehen, Arbor Petro-
         leum Corp, Oklahoma City, Oklahoma for helpful comments and 
         suggestions.  Special acknowledgment goes to my wife Laurie 
         Cammack, for her encouragement and moral support.
         
         
         
         
                                  ABOUT THE AUTHOR
         
         
              Mr. James W. Cammack has a long and varied career, mostly in 
         the petroleum industry.  After seven years as a development and 
         exploration geologist with TEXACO, INC. in Oklahoma and Ohio, he 
         joined the Arkansas Public Schools in ElDorado Arkansas as a 
         school administrator for four years.
         
              In 1969 Mr. Cammack joined Southern Union Production Co. 
         (SUPRON), Dallas, Texas, and served as District and Division 
         Geologist over the Mid-Continent region.
         
              Since 1977 Mr. Cammack has been a successful independent 
         businessman practicing geology in Oklahoma City, Oklahoma, 
         specializing in oil and gas exploration.
         
              Mr. Cammack graduated with a master's degree in geology from 
         the University of Arkansas, Fayetteville.  He also has a strong 
         background in education, psychology and investment strategies.
         
              The author is professionally affiliated with the American 
         Association of Petroleum Geologists, the Oklahoma City Geological 
         Society and the Society of Independent Professional Earth 
         Scientists.

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