In late January, a deal involving rights to drill underneath the former Lowry Bombing and Gunnery Range, 20 miles southeast of Denver, made headlines. ConocoPhillips leased rights from the Colorado State Land Board for the 21,000-acre parcel for an average $6,500 per acre, the highest per-acre mineral lease price in the board's history. Horizontal drilling in the Niobrara shale formation is a main target.

Meagher Energy Advisors, Denver, represented the State Land Board in the $137-million deal, and Nick Asher, business development associate with the firm, crafted the request for qualifications, managed field visits, and worked closely with the State Board of Land Commissioners.

It was a unique deal for the land board because of the package's size as well as its status under the state's Stewardship Trust. "There were overarching rules that applied," Asher says.

"The state wanted a company that would be a good steward and partner for the next 100 years and more, in every aspect."

Asher joined Meagher in 2008 to work in strategic development, marketing and client relations. While the company has offices in Denver and Tulsa, he travels frequently to build relationships in emerging plays such as the Utica and Marcellus shales.

Asher's family has industry roots. His grandfather, a Kansas farm boy, became general counsel for Mobil Oil. His father, also an attorney, has worked in minerals and royalties for much of his career, and cofounded Caza Drilling & Exploration and Westport Oil & Gas. He also was a partner at Berco Resources.

Asher graduated from Colorado College with a degree in history and joined BWAB Inc. as a royalty accountant. He then was Rockies director of business development for Noble Royalties Inc. He spent his lunch hours out and about on 17th Street, the main business thoroughfare in Denver, meeting with anyone and everyone he could. He took to heart his father's advice: familiarity breeds trust.

Next came a six-month stint as an independent land-man in Lewistown, Montana, putting together several hundred thousand acres in the Heath shale play. "I needed to get out and see the business from all aspects, go out to ranches and farms and see how the energy industry impacts people," he says.

Asher is a co-founder of the Energy Working Group in Denver, a collective of 150 younger energy professionals that meets bi-monthly to learn from industry speakers and support philanthropic causes.

Investor What did growing up in a family that worked in the energy industry teach you?

Asher I learned to be cautiously optimistic. Even when things are good, take it with a grain of salt, and count your blessings. I don't remember anything but dry holes as I was growing up. I'm kidding, but we were always waiting at home with baited breath for well results to come in.

Investor What do you like best about the industry?

Asher There are so many different little niches you can get into—you can figure out unique ways to make money, even as a small fish in a very large pond.

Investor What is Meagher Energy's niche?

Asher Matt Meagher founded the company in 1985, and one of the things that distinguishes us is a lot of the other A&D firms are now affiliated with larger banks. Because we're not, we have more flexibility in our range and diversity of clients. We can work on smaller deals with families as well as larger packages—it's right in our wheelhouse.

Investor What trends do you see?

Asher The name of the game is consolidation, whether in the Williston Basin or elsewhere . Between land and well costs, it's become harder for smaller companies to hang in those plays.

On the other hand, 10 years ago ConocoPhillips wouldn't have been looking onshore, and we're seeing the majors coming back. And, while I'm not optimistic about natural gas prices in the shorter term, the majors have very long time frames. While most companies deal in five- to 10-year time frames, they think 75 to 100 years out. Other offshore companies are coming back onshore as well.

The land aspects of the business are pretty astounding currently: the land grabs going on with the resource plays, the mobility, and the fast spread of information. For instance, eastern Colorado has been carpet bombed with landmen. It could be caused by people following historic production from the Mississippi Lime, or the Granite Wash, but it could be other ideas.

Today, people seem to just develop a basic concept and lease it and then figure it out. We're marketing a big package in central Kansas of 135,000 acres—Chesapeake, SandRidge, Shell and others are out there—it's wild.

One of the most interesting aspects of the Rockies is its unexplored formations, as opposed to Oklahoma and Texas, for example, where wells have been drilled to 10,000 feet or deeper for a long time.

Investor How about industry demographics?

Asher Recently a lot of younger people have heard times are good in the industry, and they are interested in coming in. Demographically, there's a big vacuum between my age and the old guard, which is in many cases not ready to retire, but is ready to step back.

The next couple of years could offer significant opportunity for younger people to step up and take on more responsibility. The old guard is very receptive and happy to share wisdom.

—Susan Klann

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