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A native Oklahoman and longtime geologist, Chernicky formed New Dominion in with two other partners. He took full ownership of the company four years later. Can you tell us how it works? De-watering is a process that produces all the in-place saltwater and the liquid and gaseous hydrocarbons within a targeted production zone.

It's also one that requires a lot of infrastructure before you produce any oil and gas.

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Our process represents a paradigm shift in thinking in oil and gas production because it recovers vast amounts of hydrocarbons left behind by earlier conventional producers due to the amount of saltwater present.

Economies of scale matter. I remember the first wedding I attended as a young teenager. No one would pour me a fresh glass of champagne, given my age.

But I had a great time drinking all of the leftover, half-empty glasses even though the champagne was a bit warm and flat. One person's trash is another's treasure. How is the process going? Unfortunately, the effort has been hampered by a lack of funding because of depressed economic times and perhaps some short-sightedness within our industry.

But this data must be saved now, or it will be lost forever. The consolidation and conversion to a more permanent medium of these vast amounts of historic scientific data is of paramount importance for future generations of petroleum producers. Can you elaborate on this technique?

Without a doubt, horizontal drilling is the most important innovation in oil and gas exploration during the past 50 years because it effectively represents the evolution of man-made technology to emulate nature. Visualize an oil and gas reserve underground. It isn't packaged in a barrel-like basin.

Instead, it typically is a heterogeneous reservoir of hydrocarbon-producing rock that covers a large area and, conceptually speaking, could be considered as the single leaf of a tree. A conventionally drilled vertical well just punches a hole in that reservoir, only recovering a small percentage of its resources.

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On the other hand, an accurately drilled horizontal well functions like a leaf's vascular system for that reserve, because it runs longitudinally across and through it, providing a maximum bidirectional flow.

How has the experience changed the way companies handle their risk management issues? I'd suggest that your readers closely watch the congressional hearings investigating this matter. With respects to risk management, it has forced the entire industry to reduce its exploration expenditures because of a lack of market capital.

This brings to the forefront the importance of our counterparties on all transactions — not just hedging — and of understanding the financial strengths and commitments of our bank groups, financial investors and purchasers.

Do you see other majors pushing their way into unconventional drilling, and what impact will that have? I don't foresee other majors making such a large entrance, but I do see and predict more investment by foreign and state-owned companies, similar to the strategic alliance announced in November between Norway's StatoilHydro and Chesapeake Energy to produce natural gas from the Marcellus Shale.

They're taking a long-term view here. But the major impact of these investments by mega-companies will, I fear, have a negative impact on other independents, smaller companies and consumers because it will drive the already-inflated cost of services through the roof, decreasing profitability for all producers without a significant increase in total production.

Read more from this Tulsa World article at http: And, if it can happen here, said David Chernicky, an oil and gas man with a healthy unconventional streak in him, it can happen in a lot of places.

There is a catch. When Chernicky started New Dominion init had 16 employees and operated fewer than 20 wells. Today, his company has eight officers, 75 employees and operates about wells.

Inthe company drilled a total offeet or about 83 miles, and completed 27 wells.Capital Entrepreneurs members are a key part of the growing startup community in Madison, Wisconsin.

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