Welder Exploration & Production, Inc. ("Welder E&P") is an oil and gas exploration and production company based in San Antonio, Texas.  It is the daily objective of Welder E&P to operate as a recognized efficient, independent energy company, competent in all facets of the exploration, drilling, and production operations of oil and gas producing properties.

It is the overriding objective of Welder E&P to serve as a premium investment vehicle for its project participants through the finding, recovering, and selling of hydrocarbons.

A typical Welder E&P oil and gas exploration and production project consists of seven critical steps:

1. Finding a sound geological idea, which hints of a potential discovery of an economic accumulation of hydrocarbons.  Typically Welder E&P generates a majority of its drilling prospects "in-house."  However, Welder E&P does, on occasion, purchase prospects from independent prospect generating geo-scientists and also employs the use of joint-ventures with other exploration companies in the search for exploration opportunities.  

2. A detailed analysis of all available geological, geophysical, and engineering data to provide scientific and technical support of the idea.  To help facilitate this process, Welder E&P has on staff two geologists and one geophysicist and utilizes the skills of other geologists and geophysicists on a consulting basis.  Welder E&P uses three-dimensional seismic data with the latest computer hardware and software to help establish the location of trapped pockets of hydrocarbons.  These advanced interpretive techniques have greatly reduced both dry hole percentages as well as the cycle time from the idea stage of a prospect to initial sales. 

3. The acquisition of oil and gas mineral leases covering the prospective area.  Welder E&P has on staff one professional landman, one attorney-at-law, and two land and lease analysts, as well as other consulting professional landmen "in the field."  It is the objective of the Welder E&P Land & Legal Department to secure oil and gas mineral leases in an expeditious and efficient manner, as well as to assist the Welder E&P Drilling & Production Department with various land surface issues which are a part of the exploration and production process.  Welder E&P strongly believes in fostering good relations with land surface owners and intends to treat properties as would a well-mannered guest.

4. The drilling of an exploratory well to test the idea of discovering economic quantities of hydrocarbons.  Although a relatively young company, Welder E&P has drilled wells to a total depth of a few thousand feet to as deep as 18,000 feet.  The experience of the Drilling & Production Department allows Welder E&P to execute and administer the drilling and completion of wells in deep, high pressure, high temperature, hostile environments, where significant amounts of oil and natural gas can be discovered and recovered.

5. The installation of production facilities and pipelines necessary to deliver the product to markets.  Once a well is determined to be productive, Welder E&P moves quickly in order to place the well "to sales".  While oil is usually delivered to market via tanker truck, in the case of natural gas discovery, pipelines must be laid to the nearest or most economical natural gas transmission pipeline.  Fortunately, Welder E&P drills a majority of its exploratory wells in mature areas where there exists at least one pipeline option.  However, given the enormous size and bureaucratic nature of most modern natural gas transmission companies, Welder E&P also works as quickly as possible to secure transportation contracts in order to reduce the cycle time from discovery to initial sales.

6. The drilling of development wells to produce the discovered reserves.  Welder E&P strives to improve the economics of an oil and gas discovery by the efficient drilling of the discovered reserves.  Utilizing newly acquired well-bore data and production information, Welder E&P attempts to drain the maximum amount of oil and gas from a minimum number of additional drilled wells.

7. The daily, weekly, and monthly monitoring of the engineering and marketing data to ensure the maximum economy of the producing reserves.  With the aid of its field personnel, Welder E&P's Drilling and Production Department monitors the producing wells on a daily basis in order to determine the need for engineering or marketing adjustments.  Project participants of wells operated by Welder E&P may visit our website at www.weldergroup.com in order to learn the latest information regarding the wells in which they own an interest.

Welder E&P currently owns and operates oil and gas properties in the Bee, Brooks, Goliad, Hidalgo, Karnes, McMullen, and Victoria counties of Texas.  As operator, Welder E&P receives reimbursement for direct expenses incurred in the performance of its duties as well as monthly per-well producing and drilling overhead reimbursement at rates customarily charged in the area to or by unaffiliated third parties.  

Welder E&P was established as a company in December 1996 as "Welder-Heyer Energy, Inc." until its reorganization was completed in December 2000 as Welder Exploration & Production, Inc.  Raymond J. Welder, III, is a degreed geologist from Washington and Lee University and serves as the President of Welder E&P.  Prior to founding of the company, Raymond Welder served as a staff geologist for the Dan A. Hughes Company in his hometown of Beeville, Texas.