The
upcoming APPEX event
in Houston is set to draw numerous repeat customers beckoned by
the show's theme to "Discover More in 2004."
Cherokee
Production is among the repeats that have had a booth each year
since the event's debut in 2001.
"We're
both a buyer and a seller," said Bill Parmley, geologist and president
of Cherokee, which he also operates.
"Since
I'm a geologist, the cost to generate prospects versus buying is
such that it's better for me to generate," Parmley said. "But I
like to see everything that's out there.
"People
have bought into my wells from as far away as Vancouver and Wyoming,"
Parmley said. "APPEX is a tremendous draw."
Like many
attendees at the various prospect expos being offered, Parmley praised
the convenience of attending APPEX, now held at the George R. Brown
Convention Center in Houston.
It's a
big deal, but the dealing is done on a personal and friendly basis.
"You can
go through the whole show fairly easily and see all the booths,
which is not so easy at a bigger show," he said. "Still, it's getting
bigger each year, and I'm seeing more and more new people there."
He's
not alone. Joining Cherokee and other exhibitors in the repeat category
is Sandalwood Oil & Gas, a company that already has drilled
10 wells this year and plans to drill another 15 before year-end,
according to company president Dan Smith.
Smith,
also a past president of AAPG, attributes much of this activity
to prospect expos like APPEX.
"Overall,
just about all we've done is sold," Smith said, "mainly because
of prospect shows' exposure, and APPEX has been really good to us."
A caveat:
While there are instances of deals being finalized on the floor,
don't consider your booth investment a failure if you close the
show without closing a sale.
"I've never
sold on the spot," Smith said. "Generally we make a long list of
people who come by and are interested and end up making appointments
where they come by and do due diligence — reviewing seismic data
with the workstation and such.
"We're
then able to sell the prospects in that manner," Smith said, "where
the contact was made at the show. And we've also sold some things
by 'word of mouth,' where a company decided a prospect didn't fit
its needs but led us to another company where it would."
Because
of this type of carryover from a prospect expo, hard and fast statistics
for what sells directly as a result of each show are elusive.
"It's far
more complex than that," Smith said, but "a show like APPEX can
be carried to an exponential value.
"For instance,
a company may look at a prospect and not buy," he said, "but a familiarity
is established. Then we may be able to sell them the next prospect
that comes along.
"This is
an extension of the value of the show," Smith added, "where contacts
are made that have multiple effects."
Aside from
the "art of the deal" aspect, APPEX also can be fertile ground for
job hunters.
"I know
of one guy who went to APPEX last year looking for a job," Smith
said. "Because of the contacts made, he got several offers and landed
a good job."