The deepwater Gulf of Mexico has proven to be a windfall for Deep Gulf LP, a small, privately held independent in an exploration area traditionally considered too costly for an independent. "We were among the first independents in the deepwater Gulf of Mexico," chief financial officer Jere Overdyke said at the Private Capital for Energy Forum, sponsored by COSCO Capital Management and Oil and Gas Investor in Houston in June. Getting the money in today's market may not be the problem; rather oil and gas producers may have expectations different from their capital providers. Overdyke recommends that both teams coordinate their efforts to avoid conflicting business patterns and to ensure long-term partnerships. "Manage expectations. Marry up with someone who has a common risk profile." And most of all, Overdyke warns about entering a seemingly positive deal and then getting stuck in a quagmire when it's time to leave. "It's easy to get into deals, and can be hard to get out, so have an exit plan in mind before entering." For more on this, see the July issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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