Published: May 14, 2008 09:53 am         

Ward Petroleum digging deep wells — lots of 'em

Enid oil magnate tapped his first oil well in 1963

In 1963, Lew Ward, founder of Ward Petroleum, drilled his first well in the Sooner Trend near Enid. Since that time Ward Petroleum has drilled more than 800 wells, some as deep as 22,000 feet.

Traditionally, Ward Petroleum has grown its reserve base through drilling. Ward Petroleum has supplemented its growth strategy with strategic acquisitions, acquiring more than $50 million in assets since 1996. Today, Ward Petroleum operates nearly 350 wells in Oklahoma and has other non-operated interests throughout the state.

Ward Petroleum has been listed in the top 100 fastest growing American companies by Inc. magazine, and has been named a ’Blue Chip Enterprise’ by Nations Business magazine.

Development Drilling

’After you discover a site it may take years to develop it,’ said Jim Evans, Ward Petroleum senior geologist.

He said Ward Petroleum does about 40 percent exploration and 60 percent drilling, with the majority of the company’s work concentrated in an area south of Interstate 40 and west of Interstate 35.

’Most of the exploration we’re doing today is deeper than what they did previously,’ he said. ’There’s still a lot of work to do in Oklahoma.’

Ward Petroleum uses 3-D Seismic imaging prior to digging, which is not foolproof, Evans cautions, and costs about $50,000 a square mile to perform.

’It tends to keep you from drilling where there is nothing,’ Evans said. ’It’s not perfect, but if it was, everybody would be rich.’

Evans said the company has 25 rigs in Oklahoma drilling to depths below 20,000 feet and more than 100 rigs in the state drilling below 15,000 feet.

He said each of the company’s wells has ’multiple’ partners, each with a stake in the success of production for the well. By doing so, Evans said, the risk is spread between those multiple partners, allowing more wells to be drilled overall.

Good People and Smart Business

Executive Vice President and Chief Financial Officer Richard Tozzi credits the company’s success to its founder’s business sense and the people who have dedicated years to progressing the company.

Ward Petroleum employs 57 people in its Enid office, but Tozzi estimates between 200 and 300 people are employed by Ward through contract services needed for its operations.

’Every time a well gets drilled it’s providing jobs for about 75 people,’ he said.

When most companies were failing during the Oil Bust in the early 80s, Lew Ward kept his company going through sound investments and avoiding outlandish deals or gimmicks.

’Lew Ward did not invest in any crazy deals,’ Tozzi said. ’He conducted his business as he does his personal finances.’

Evans said the reason Ward Petroleum survived was because of Lew Ward.

’He didn’t have the debt,’ Evans said.

He said most oilmen during the oil boom were obtaining a glut of debt, and compared the situation then to the sub-prime mortgage crisis of today.

Evans said the oil bubble burst in 1982, and the number of operating rigs dropped from about 3,000 to 700.

’It stayed in that depressed mode for about 15 years,’ he said.

He noted the industry didn’t begin to see a turn-around until the late 1990s.

’More than 25 employees have been here more than 20 years,’ Tozzi said. ’We’ve never had a lay off.’