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wellevaluations, LLC (formerly Discovery Capital, L.L.C.) has been providing Integrated Solutions to the Energy Industry since 1996. wellevaluations is a personally held corporation involved in supplying management, funding and reservoir engineering expertise to the oil and gas industry. The company participates in a wide range of activities including drilling, acquisitions and prospect generation. The company has a diversified investor base including domestic corporations, registered limited partnerships and high net-worth individuals

The Managing Partner of the Company is William M. Johnson. Bill has been working in the oil patch since 1978 when he started as a roustabout for Amoco Production Company in Odessa, Texas He worked on a variety of assignments as a production and reservoir engineer in Odessa, Tyler, Alvin and Houston, Texas while at Amoco. Responsibilities in the district offices included maintaining or enhancing production from 10 fields. In the Houston division office, He was responsible for a field study on the East Hastings Field and several short deadline projects involving litigation.

He left Amoco in 1982 to take a position as a Petroleum Engineer with Mellon Bank. His responsibilities included evaluating oil and gas assets that collateralized loans to existing and prospective customers, improving asset quality through improved data evaluation and reporting techniques and restructuring several loans (many of which were otherwise destined to the bankruptcy courts). During his tenure at the bank, he evaluated in excess of 100 deals encompassing over $10 billion in reserves. This effort resulted in the consummation of 28 new bank loans representing net commitments of over $550MM. At age 29 he became the youngest Vice President in the history of Mellon Bank.

In 1988 he left corporate America in order to manage the domestic assets of a small Australian oil and mining company. He was hired to run their United States holdings and to help extricate the company from several uneconomic projects. In the course of business, Western Gulf purchased various oil and gas properties from a Kansas company that was to become Hugoton Energy. As a result of the close working relationship brought about by this acquisition, he was able to put Hugoton and Western Gulf together as Co-General Partners of two limited partnerships with a major insurance company. Later Western Gulf elected to sell their partnership interests to Hugoton Energy.

Hugoton was a publicly traded company (NASDAQ:HUGO) involved in the drilling and acquisition of oil and gas reserves. Bill was a co-founder of the company and the second largest shareholder until a 1994 public offering.

While the company was private, he was responsible for financial reporting, originating and negotiating all banking relationships as well as evaluating all acquisitions and significant capital expenditures. He also originated and negotiated a $70MM capital commitment, for the partnerships mentioned. The partnerships were the vehicle for Hugoton to purchase producing properties, undeveloped acreage, a gas processing plant and a gas gathering system. At the time of the formation of the partnerships, Hugoton had the smallest capitalization, by an order of magnitude, of any company with which this insurance company had previously done business.

Plans were made to take the company public during 1993. In anticipation of this effort, he was actively involved in negotiating to buy out the insurance company's interests in the partnerships. A deal was consummated that netted the insurance company $74MM for their interests, creating a significant internal rate of return for them. A new equity partner was secured to facilitate this buyout. He was responsible for marketing the company to this prospective partner and represented Hugoton during the due diligence phase.

To assist in the public offering process, he moved from Houston to Wichita. His primary responsibility during this period was the construction of the SEC S-1 Registration Statement. He was responsible not only for the historical reserve numbers, but also the financials, until a full time CFO was hired. He dealt daily with the underwriters and their attorneys and provided them assistance during the due diligence and drafting phase.

After the public offering, he directed the acquisition of over $130MM in additional oil and gas assets. In addition to the property purchases he evaluated the assets of Consolidated Oil & Gas. This analysis led to the merger of the two companies in which Hugoton was the survivor. This merger doubled the size of Hugoton. He also dealt with the lending group that grew from one bank to four, including two international banks.

Despite years in the financial world Bill was always an engineer at heart. Reservoir engineering is a passion that he works on constantly. Bill is the head engineer for wellevaluations L.L.C. His expertise is in pressure transient analysis, reservoir simulation and reserve evaluations. As mentioned elsewhere on this website we use the following programs to assist in our evaluations:

  • ECONOMIC EVALUATIONS
  • PhdWin
  • Aries for DOS
  • PRESSURE TRANSIENT ANALYSIS
  • WellTest from Fekete Associates
  • RTA from Fekete Associates
  • RESERVOIR SIMULATION
  • EXODUS from T.T. & Associates
  • PIPELINE & NODAL ANALYSIS
  • PIPER from Fekete Associates

Bill has attended training schools for each of these programs. He also attends various other industry schools including those sponsored by the SPE and Next.

Bill graduated from Texas A&M University in 1979 with B.S. in Chemical Engineering. He was a member of the Phi Lamda Upsilon Chemistry Honor Society and on the Dean's List. He had a short unsuccessful professional baseball career and was a Captain of the A&M Lacrosse team.

Bill is a Registered Professional Engineer in Texas, a member of the Society of Independent Professional Earth Scientists and the Society of Petroleum Engineers.

When the need arises for other complementary disciplines, we have relationships with exploration geologists, development geologists, gas pipeline contract negotiators, accountants and experts in natural gas processing. These relationships have been built over many years and projects as allow us to offer an Integrated Solution to your needs.

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