Worlds away from the boardrooms of Houston and Dallas, Travis Parker, 24, is hard at work in Olney, Texas, studying maps and logs, looking for shallow-oil leases to go after in Archer and Young counties. At other times he’s in the field helping pump wells for BM Oil Co., the family-owned exploration and production company where he is director of operations. He is learning the oil business the old-fashioned way, with the goal of one day heading his own company.

Parker grew up in Plano, Texas. His father earned a geology degree from Baylor University in 1985, but given the industry downcycle, turned to business and real estate. Parker also attended Baylor, majoring in finance and entrepreneurship. He became intrigued with oil and gas, and a friend arranged for him to talk with his father, the CEO of Cholla Petroleum, a Dallas-based independent.

“There isn’t a day where I haven’t learned something new,” the CEO, Loyd Powell Jr., told Parker. Powell gave him a job as a roustabout for the summer in Sweetwater, Texas.

Parker spent that summer and part of the next living in a trailer at the yard in Sweetwater, learning the business from the ground up and earning the respect of all with his hard work. “It was the best experience I’ve ever had,” he said.

As graduation neared, he looked into a career in private equity. After meeting with some of the largest players in Dallas, however, he realized he would need a graduate degree or investment-banking experience--paths he didn’t want to take.

Again, a buddy’s father helped. With a manufacturing business in Olney, the father, a petroleum engineer, wanted someone to manage his family oil business, which invested in shallow-oil leases. He’d teach Parker everything he knew about the business and, when ready, Parker could take over operations.

Parker jumped at the chance and couldn’t be more grateful. In a recent interview, he talked about his first year on the job.

Investor: The goal was to teach you the basics in about six months. How’s it going?

Parker: The learning never stops: everything from prospecting for leases, acquiring them, learning the process of increasing production and building them up to sell, filing Railroad Commission permits, keeping the books, legal and tax issues, paying the employees.

After five months, I identified a 650-acre lease coming up for sale. I pulled well info. That’s one thing about North Texas--it’s so drilled up, the data points are fantastic. The large amount of data, from electric logs to drillers’ logs to scout tickets, provides a great understanding of the producing reservoirs’ dynamics. The lease was producing 2.5 barrels per day.

I presented my reasons for buying it, and my boss said "OK, how much do you want of it?" So I went to the local bank and got a line of credit. I’m in debt, that’s for sure … but it’s exciting.

We drilled three wells in the Gunsight Formation and permitted a couple more. The initial production was 32 barrels per day total, which has dropped to about 13 barrels daily. This was better than we expected. And, with oil prices strong, the economics have proved better than what we expected.

Investor: What’s next?

Parker: I mapped another 1,000 acres surrounding the lease and we’re about to close on that deal. We like the area and we believe there’s plenty of oil left behind. In this area, promoters, back in the 1980s, drilled multiple wells. Based on our analysis, they left behind some good opportunities by either passing on some potentially productive zones and/or incorrectly completing wells. Sometimes wells were mislocated and you can go in and remap acreage, potentially changing the subsea geologic highs. Data is king.

Investor: Are you taking a piece of this deal?

Parker: Yes. If this works out well, I will try and open a larger line of credit so I can keep on turning right.

Investor: What’s your goal for the next year?

Parker: I want to develop this new acreage position to its greatest potential, build production, and sell it to an investment group, to allow me to pay off my debt and acquire a larger stake in the next deal that comes around. In the years to come, I want to put together deals and be my own operator, using my own equity, and grow from there.

Investor: What’s been the biggest challenge?

Parker: I don’t have a geology or engineering degree, so I need to learn it all. I read all I can find and ask the experienced field personnel to teach me everything they know.

The other challenge is finding additional field personnel like the great ones we currently have. And, to work at a faster pace to keep growing.

Investor: What do you like best about your job?

Parker: My boss is always there to answer questions, but in many ways I’m working for myself … I have the responsibility. That’s how I like to work--I love problem solving and making decisions.

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