General Statement

The GHK Company’s (GHK) recent activities continue to focus on its core strengths of exploring for and producing deep, high pressure onshore natural gas – America's largest remaining source of undeveloped natural gas, estimated to be 132 Trillion Cubic Feet (TCF) - within one of America's most prolific natural gas regions: The Mid-Continent..

GHK’s early activities were focused on its pioneering exploration and production in the deep Anadarko Basin of western Oklahoma that subsequently led to the successful opening of the province and trillions of cubic feet of new natural gas reserves. GHK’s continuing quest to explore for natural gas includes activities in the Ouachita fold and thrust belt of southeastern Oklahoma, and the frontal fold and thrust belt of the Wichita Mountains, as well as the underexplored deep levels of the greater Anadarko Basin. The firm’s international activities have included a new oil field discovery in the Eastern Cordillera fold and thrust belt in the Magdalena river basin in Colombia, the provision of engineering services and equipment for refurbishing oil wells in the Russian province of Samara, and studies of natural gas resources in China.

From inception through the mid 1980’s, the company pioneered deep, high-pressure natural gas development in the Anadarko Basin and led the industry in technological innovation to successfully drill and produce many of the world’s deepest and highest-pressure natural gas wells. This leadership in the development of deep drilling and production technology, coupled with the company’s national leadership in the movement to deregulate natural gas prices in the late 1970’s, continues to this day to spur on active development of the nation’s vast remaining deep natural gas resources.

During the 1990’s, GHK concentrated its efforts in two fold and thrust provinces. The company discovered two significant fields, one in each province: The Guaduas Oil Field in the Eastern Cordillera fold and thrust belt in the Middle Magdalena Basin of central Colombia and the Potato Hills Natural Gas Field in the Ouachita fold and thrust belt of southeastern Oklahoma.

Between 1997 and 2004, GHK drilled 37 wells and completed 32 producing wells in its Potato Hills field, placing the company as the ninth largest natural gas producer in the state of Oklahoma in both 2000 and 2001. In 2005, GHK initiated a multi-well infill drilling program in the Potato Hills field. Numerous wells have been completed as producing wells and additional wells are in the completion phase.

Beginning in 2003 the company began a multi-well deep Anadarko Basin exploration program which led to the discovery of the Indian Field, where significant Hunton and Morrow production has been established. More recent drilling has also established significant production from the Lower Cherokee, Marmaton and Cottage Grove formations. The first two lower Morrow/Springer wells each sold initially over 10 MMCFGPD. The company has commenced an aggressive development/exploitation program in an effort to fully develop this exciting discovery. In order to treat the Indian Field gas for pipeline quality, GHK built a treatment plant – initially capable of 40 MMCFGPD. The Indian Field is a combination structural-stratigraphic trap that was initially defined by GHK with 2D seismic. 3D seismic data was subsequently acquired in order to image stratigraphy for optimum development.

GHK’s overall success ratio for all drilling operations, including its wildcat exploratory drilling, since its founding has been above 70%. The company's success ratio from 1995 to 2005 has been 85%.

General History