Payday: The Dan Hughes Story

Dan Hughes biography-chapter 28_Layout 1 2/16/2016 2:05 PM Page 166
favorable seismic structures on Llanos 58 to be drilled.
Hupecol’s past exploration in Colombia has been in the Llanos
Basin, but two concessions have been acquired in the Magdalena
Valley area for which the 3-D seismic has been completed. The
geophysics have developed three structures that have a high
potential for shallow oil production.
As of this date, Hupecol has drilled 157 wells in Columbia.
In other foreign operations, the company has completed a
seismic program in Belize and several favorable seismic structures
were located. There are numerous oil seeps in the area. The first
test well has been drilled to a depth of 10,354 feet, had oil shows,
but was a dry hole.
DAHC has recently purchased the production from Exxon on
the Santa Fe Ranch, in Texas, which is owned by the East family and
is part of the original old King Ranch oil & gas lease. This
acquisition contains approximately 88,000 acres and has
production from three gas condensate fields. Geological and
engineering reports indicate a large undeveloped potential for the
project. The purchase price was approximately $39 million.
DAHC has completed a 3-D seismic survey on the Damon
Mound salt dome in Brazoria County, Texas. This old oil field was
discovered in 1915 and produced 23.6 million barrels of oil from
shallow Miocene and Frio sands. Seismic surveys of these old
producing structures usually find untested areas. Dan’s old friend
from his time at Union Producing, Bill Darsey, brought this
prospect to the company.
In deep South Texas, DAHC has deals pending with the Jones
ranches on approximately 60,000 acres to rework existing 3-D
seismic with options to lease and drill any prospects that are
developed.
166