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Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-1959]
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Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-1959]
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George H. W. Bush Papers
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Originally Processed With FOIA(s):
FOIA Number:
S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection: Donated Historical Materials
Collection/Office of Origin: Bush, George H.W., Collection
Series:
Personal Papers
Subseries:
Zapata Oil File, Business Correspondence File
OA/ID Number:
25850
Folder ID Number:
25850-004
Folder Title:
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-1959]
Stack:
Row:
Section:
Shelf:
Position:
G
5
1
3
5
XXX 3195
December 2, 1958
Mr. Harold Shattuck
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Harold:
Thank you for the annual reports which you sent to me.
Would you please send me the latest dope on Barnwell Offshore
Company and Reading & Bates when it is available.
I am not able to find Electronics Associates quoted in
any newspaper. Therefore, would it be possible to send me a
post card every Friday with the most recent quote. Inasmuch
as I hold the stock in a trust I should like to be able to
keep up with the price.
Thanks a lot for all your help.
Yours very truly,
George H. W. Bush
GHWB:JMcB
XXX 3195
November 21, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Thanks for your letter of November 17. I have heard
of Mark Edwin Andrews; in fact, I believe I have met him. His
father is a senior partner in Baker-Botts, and Baker-Botts has done
all the legal work for registering his drilling syndicate. I shall
make it a point to go by to see him in Houston. I have written the
attached letter to Mr. Meek.
Thanks for the comments on the annual report.
I spent the last couple of days in New Orleans calling
on the companies there and inspecting the Nola which is in the ship-
yard at Slidell, Louisiana. The conversion is under way and should
be completed by December 15 or January 1. Still nothing definite on
the Vinegarroon but we are hoping to land a contract with Continental.
The rig is still working and will be for a week or so anyway. In New
Orleans we looked at a couple of really good looking farmout deals
that Sterling Little and I are going to commence work on. There is no
pressing time on them, and if we can get them signed up and get them
sold they will be good to have available for the Vinegarroon or
Scorpion for next winter.
Best regards.
Yours very truly,
and Goo on
9
George H. W. Bush
GHWB:JMcB
G. H. WALKER & CO.
INVESTMENT BANKERS
ESTABLISHED 1900
ST. LOUIS
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL. HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
CABLE: "WALKERIAN"
November 17, 1958
Mr. George H. W. Bush
Zapata Off-Shore Company
Midland, Texas
Dear Pop:
Thanks for your letter of November 13th and the outline of your
annual report for Zapata Off-Shore Company. We feel the last paragraph
of your President's letter could be somewhat expanded and I am enclosing
herewith a few suggestions which lend weight to your proposition that "we
face the future with confidence". I think the rest looks fine and I am
sure you will cover everything in apple pie order. Personally, I am glad
that you did not show any income for the Vinagarroon for September as that
will get us off to a good start for the first quarter of the new year.
Since the year's statement was poor anyway, it is better to get all the
bad news we can behind us which you have done. The balance sheet makes
pretty good reading and on the whole I think the statement will be favora-
bly received. Certainly the stock at these prices would seem to have dis-
counted pretty much of everything.
Sam Meek called me the other day about Mark Edwin Andrews
of Houston, Texas, who evidently has gotten all the Fishers Island money
including the Simmons, etc. in his drilling syndicates. Ed Andrews caught
on the Lawrenceville team while I was catching at Hill School. He called
me today and said that Sam had been talking Zapata to him and he would
very much like to meet Hugh and yourself sometime to see if there was an
area where possibly we could work together sometime in the future. He will
not be back in Houston until December 15th and his office there is 1400
Bank of the Southwest. I told him you were in Houston frequently and that
I would drop you a line suggesting you might drop in and call on him some-
time after the 15th. This probably is a completely blind alley but one
can never tell and I must say Sam Meek is an enthusiastic rooter for the
Zapata Companies, and for this reason alone I would like to have you follow
up on his suggestion.
My very best to all in Midland.
Sincerely,
Herbice
G. H. Walker, Jr.
XXX 3195
November 17, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I would like very much to have a copy of the most recent
report on Anderson Clayton.
I had a most interesting weekend in Dallas. First of
all I met Suzuki from the Japanese Embassy. He is their financial
minister and it seems the Japanese need about $10 million for their
oil deal in Arabia. They want to borrow the money on debentures to
be guaranteed by the Japanese banks. I have talked to Al Foote about
this in some detail. I took Suzuki to Mineral Wells where we attend-
ed the Dallas Council on World Affairs Conference of the Far East.
It was there I met Lamar Fleming, Chairman of the Board of Anderson
Clayton. It was a most interesting meeting and I was lucky to have
attended. Neil Mallon was there and I had a good visit with him. I
got home last night.
The Vinegarroon is still working on the Continental fire.
I am hoping we will get some additional work out there, but no guarantee
of this is certain at this time. We also have a bid in now to Standard
of Texas. I plan to go to New Orleans this week to try to work out
the first location of the Nola and will then be back here for a final
meeting with the auditors on the Offshore financial report.
Best regards.
Yours very truly,
George H. W. Bush
GHB:JMcB
ONE WALL STREET
NEW YORK 5, N.Y.
November 13, 1958
George Herbert Walker Bush, Esq.
Zapata Offshore Co.
Box 3195
Midland, Texas
Dear Poppy,
Thank you very kindly for your bank
check on Trice. Please be assured that not
only will I throw the excerpt away, but that
no reference will be made at any time to
either you or your friends.
Drop us a line from time to time and
keep us in touch with what you think you might
be doing in our block during 1959.
Wishing you all luck, I remain
Sincerely Vincent R. yours, Smith, Jr.
XXX 3195
November 13, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I am sending you the September figures for
Zapata Offshore. They do not show any income for the Vinegarroon
for this month although we were working the whole time and al-
though the figures do reflect $74,000 worth of expenses for the
month. This all means that our next month's figures should look
a good deal better, but since we were drilling on a footage basis
we were unable to show the income as it accrued.
We are preparing our annual report and I
have told the printers we do not want it to be extravagant in
any way since we have operated at a substantial loss. We do not
want to appear over-spending; however, it will be a good report.
We are devoting the inside cover to a presentation of what we
plan to do with the Nola. It is going to be prepared in such a
way that we can use it as a promotional piece of literature by
having extra copies apart from the text of the report. I am at-
taching a rough draft of the letter I intend to use. I have
tried to make it frank and yet not overly pessimistic. In addi-
tion to that, there will be a rather detailed treatment of what
we have done this year along the lines outlined which I am also
attaching hereto. If you have any criticisms or suggestions,
please shoot them to me fairly soon. The auditors are still work-
ing, but we should mail about the same time we did last year,
namely the first week in December.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Encl.
XXX 3195
November 11, 1958
Mr. G. H. Walker, Jr.
G.H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I thought you might be interested in the attached clipping
from the Houston paper. This well is at TD but will be busy
another 3 weeks or so. We have several other deals working and
we are hoping we can land a contract shortly.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Encl.
mou
I
G H WALKER JR
1958 OCT 20 PM 19
THE HOMESTEAD HOSSPINGS VIR
TRIED TO CALL YOU THIS EVENING BUT YOUR ROOM DIDNT ANSWER.
WE GOT CONTINENTAL CONTRACT THIS MORNING RIG MOVING TOMORROW.
DONT KNOW HOW LONG WELL WILL TAKE. DEAN RETURNING XXXXX DEAL
POSTPONED IN JAPAN HOPE YOU'RE FEELING BETTER
GHWB
BUSH
ZAPATA OIL BOX 3195 MIDLAND TEXAS
CLASS OF SERVICE
This is a fast message
WESTERN UN'ON
SYMBOLS
DL=Day Letter
unless its deferred char-
NL=Night Letter
acter is Indicated by the
proper symbol.
TELEGRAM
1201
LT=
International
Letter Telegram
W. P. MARSHALL. PRESIDENT
The filing time shown in the date line on domestic telegrams is STANDARD TIME at point of origin. Time of receipt is STANDARD TIME at point of destination
DA015 BA022
1958 OCT 13 AM 7 42
B GWA003 PD=GREENWICH CONN 13 755AME=
GEORGE H W BUSH=
ZAPATA PETRO CORP MIDLAND TEX=
YOU CAN REACH ME MOTHERS APARTMENT ALL THIS WEEK IF
ANYTHING COMES UP FONE LEHIGH 52258 BEST LUCK=
HERBIE=1
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
Withdrawal/Redaction Sheet
(George Bush Library)
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
CLASS.
AND TYPE
01. Letter
From George Bush to G.H. Walker, Jr.
10/13/58
C
RE: Campaign contribution (1 pp.)
COLLECTION
George Bush Personal Papers
Zapata Oil File
Business Correspondence Files
FILE LOCATION
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-
OA/ID Number
1959]
Date Closed
10/26/99
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
F-1 National security classified Information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA)
F-2 Release would disclose Internal personnel rules and practices of an
P-3 Release would violate a Federal statute ((a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
F-3 Release would violate a Federal statute [(b)(3) of the FOIA]
financial Information [(a)(4) of the PRA]
F-4 Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President and
information [(b)(4) of the FOIA]
his advisors, or between such advisors [a)(5) of the PRA]
F-6 Release would constitute a clearly unwarranted Invasion of personal
P-6 Release would constitute a clearly unwarranted invasion of personal
privacy [(b)(6) of the FOIA]
privacy [(a)(6) of the PRAJ
F-7 Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed In accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose Information concerning the regulation of
financial Institutions [(b)(8) of the FOIA]
F-9 Release would disclose geological or geophysical Information
concerning wells [(b)(9) of the FOIA]
III 3195
October 3, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
The attached letter to Jim Gammel will bring you up to
date on recent happenings and on the visit of his associates
here to Midland.
I have just talked to Houston and our offshore well is
drilling at 8210'. I hesitate to pass this along to you since
we have so often followed up with bad news, but both Little and
our geologists here feel that on the 3500' log our well is run-
ning 200' high to the #1 well. I am hoping this proves to be
correct and that this added structure will mean additional sands.
We probably will run our first log towards the middle of the
week. Other than this first log, which is certainly not at all
conclusive, there is no indication whatsoever how we are looking
and even our next log will not tell us much, since our first pay
is expected around 10,800 and our first log will probably be
taken around 10,000.
Our package deal appears to have gotten off to a good
start although we are having some mechanical problems with the
first Vacuum well. The Cummins well, which is in the Goldsmith
Field, has been dually completed and all indications are that
it will make a very good well. Our first wildcat is not deep
enough to be at all conclusive.
Yesterday I had a short siege of flu, and although my
case was extremely mild I thought of you in your agony up there.
I hope you are well by now. I stayed home for half a day, but
then I found things more restful here in the office than being
caged up with the two smallest boys. Neil and Marvin were
pretty wild.
Withdrawal/Redaction Sheet
(George Bush Library)
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
CLASS.
AND TYPE
02. Letter
From Thatcher to George Bush
9/25/58
C
RE: Financial information (1 pp.)
COLLECTION
George Bush Personal Papers
Zapata Oil File
Business Correspondence Files
FILE LOCATION
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-
OA/ID Number
1959]
Date Closed
10/26/99
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
F-1 National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
F-2 Release would disclose internal personnel rules and practices of an
P-3 Release would violate B Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
F-3 Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
F-4 Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President and
Information [(b)(4) of the FOIA]
his advisors, or between such advisors [a)(5) of the PRAJ
F-6 Release would constitute a clearly unwarranted Invasion of personal
P-6 Release would constitute a clearly unwarranted invasion of personal
privacy [(b)(6) of the FOIA]
privacy [(a)(6) of the PRA]
F-7 Release would disclose Information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
F-9 Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
August 18, 1958
Mr. G. H. Walker, Jr.
Kennebunkport, Maine
Dear Herbie:
Once again I am back at the desk in Midland, but
I must say I wish I were out there battling you and Mary on the golf
course. Our return flight worked out nicely. We got to Dallas at
4:45 in the morning, sacked out in a motel for 4 hours and then headed
for Midland. I thought I would bring you up to date on the recent
happenings here.
The South Penn matter appears to be stalemated.
Hugh talked to Jack Roth Friday and although Roth professed he would
like to see something done now, he said South Penn had decided to wait
and try to work out individual deals with us and others. Hugh and I
feel this is what Tidewater really wanted to happen, and we cannot
help but feel Jack Roth blew the deal up.
Hugh talked to John Selden this morning about
getting South Penn to join us on the Phillips farmout deal. We are
offering them a participation on the ground floor with the promotion
coming from the price on the drilling. With drilling money as it is
right now, we felt we would have a better chance of making a deal on
this basis rather than trying to promote it further. The Bill Liedtke
Syndicate has agreed to take a quarter of the deal, and if Zapata keeps
a half this will leave a quarter for South Penn or someone else. We do
not anticipate trouble making the deal on this basis although we do have
a pretty good drilling price in there for the Drilling Company. There
are a few technical difficulties on the deal, mainly on the Andrews
County Farmout, but Hugh expects that we will have those worked out before
too long. The Drilling Company has 3 rigs working now, but Mickey has
just landed contracts for the other 2, so all 5 should be turning again
at the end of the week.
On Off-Shore, we still have not heard from the
Standard Oil Company of Texas, although the status of that substan-
tially remains the same. I am going down to Houston tomorrow and per-
haps will know more then. Our quotation for Pan American on Iran
must be in by Wednesday and we hope we can push them into some kind of
a decision favorable to us.
Mr. Walker
-2-
August 18, 1958
I talked to George Newton today and he plans to
call Mr. Keyser with Columbian Carbon to see if there might be some
general interest on a deal there. I certainly think we should make a
deal if at all possible.
The Oldham well should be in the Devonian in the next
3 days. Everyone seems to feel pretty good about the Strawn drillstem
test, but we will not know anything conclusive on that until we see it
logged. If the Devonian produces we certainly should get something out
of the Strawn; the question is, just how much. In other words, the
Strawn by itself might not be enough to be really good; on the other hand
it could be very good. There is no possible scientific way of telling
more at this time.
I played a couple of rounds of gold this weekend
in a tournament here, and surprisingly enough fired an 82 and a 79.
Without all that pressure from you and Mary I found I could do better.
However, I would like a return engagement with both of you soon. Please
thank Mary for everything she did for us up there at the Port. Bar and
I both are convinced we sponged far too much off you and she and I both
agreed we enjoyed every minute of it. Please give our love to all the
family, and many thanks for a delightful week.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
--- 3195
May 20, 1958
Dear Herbie:
A note from Lily states you are home with a leg infection. I
am sorry to hear about this. Thatcher sent along the letter to be
delivered to Mr. Yamashita. Wayne and I are all set to leave Friday,
and we will get back Thursday, May 29. We have gotten some good
letters to take along, and I hope we can make some real headway over
there.
Not much news here. We bid on the Sinclair job and lost it.
Confidentially, we bid $4675 a day which we felt was a bargain price.
This is not quite as cheap as it sounds, since Sinclair agreed to
furnish many of the things which we ordinarily furnish. In any event,
Barnwell got the job by bidding $3720 a day. Bear in mind this is the
first contract well they will have drilled. Reading & Bates bid $4000
a day, and Offshore Company bid $4600 a day. We are still dickering
with Continental and we hope to shape up another Block 86 well. To
me, a good big thick pay section on 86 will answer many of our prob-
lems. The Standard of Texas well was drilling at 6100' this morning,
and Cay Sal was at 5494'. We are having crooked hole trouble at Cay
Sal, but it is nothing too serious at this point.
Hugh has had some good discussions with Phillips on some Panhandle
gas. We are trying to get something kicked off there.
I hope the leg responds and that it is not too serious.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
---- 3195
July 17, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Wayne got back yesterday and reports as follows on Venezuela.
The Dominion Oil Company deal, for which bids were supposed to be
in by July 15, has been set back to allow late bids to get in. When
Wayne left Dominion did not give a definite time as to deciding on a
contractor. He did feel he had made some real headway there, not
only with Dominion, but with the Texas Company and with Kern. Nolan
Stewart went from Trinidad on over to Venezuela. We will get a report
from him early next week. Our Block 51 farmout deal is drilling
ahead today, and the Vinegarroon is still fishing. I am wondering
if you could get Paul Woodruff to send me the latest financial dope
on Barnwell, Dixilyn and Reading & Bates. I should like to have this
in the event a couple of these deals we are working on should break
at one time.
It is hard to predict how we did with Tidewater, although Hugh
and I both felt that we made real progress with Jack Roth. We did
not talk to Getty long enough to be able to say the same for him.
Not much else to report on this end. Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Withdrawal/Redaction Sheet
(George Bush Library)
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
CLASS.
AND TYPE
03. Letter
From George Bush to G.H. Walker, Jr.
5/15/58
C
RE: Financial information (2 pp.)
COLLECTION
George Bush Personal Papers
Zapata Oil File
Business Correspondence Files
FILE LOCATION
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-
OA/ID Number
1959]
Date Closed
10/26/99
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
F-1 National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
F-2 Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
F-3 Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
F-4 Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President and
Information [(b)(4) of the FOIA]
his advisors, or between such advisors [a)(5) of the PRA]
F-6 Release would constitute a clearly unwarranted Invasion of personal
P-6 Release would constitute a clearly unwarranted Invasion of personal
privacy [(b)(6) of the FOIA]
privacy [(a)(6) of the PRAJ
F-7 Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
F-9 Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
/// 3195
May 6, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I am attaching a draft of a letter which I propose to mail to
the Off-Shore stockholders. I wanted you to take a look at it, however,
before we prepared it since I do not want to do anything that would dis-
turb the market. I realize the problems you have with this. I do think
it is important to tell our stockholders what is going on from time to
time, especially since we have a few guys like Katz lurking amund.
When you have had a chance to look this over, would you drop me a line
to Houston, or call me, or send a teletype message there. I will be
there Thursday and Friday.
It was good seeing you in New York. We are, of course, con-
cerned about the general business outlook, but we well know the domestic
oil business has a way of snapping back. Then, too, in a small situa-
tion like ours, any one or two breaks could change the whole picture.
I talked to Hugh at length about this, and both of us are afraid we might
have painted too gloomy a picture. Our spirits are certainly not down,
but we did want you to know that we feel the domestic producer, and par-
ticularly the domestic service company, has some problems at this time.
I feel very good about our Standard of Texas contract. We will have a
meeting in Houston Thursday after which we will be prepared to make some
recommendations on 86 and 96.
The flight back was not bad, and we certainly had a wonderful
time at the theater. Please tell Lily to forward the bill to Box 3195
and I shall mail her my check. The seats were perfect.
I have a letter on my desk from John Ecklund asking me to
speak for our group at RTA. I don't know whether I will be able to
do this or not. We have a tenth reunion, but with our class situation
so disarranged I am not sure that I would know many people there.
Not much else to report on this end right now. I talked to
Wayne last night and he says Cay Sal is proceeding satisfactorily, al-
though we are having the expected drilling problems.
---- 3195
April 8, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Attached is a copy of my loan application to the Texas
National Bank plus our most recent balance sheet showing our position
at February 28 and our proforma position to April 15. You will note
the Company operated at a rather substantial loss for the first five
months. This, of course, is due to the fact that we had only the Vine-
garroon working, and that on a part interest deal. I am not too dis-
turbed at these figures since the cash loss was very modest in the face
of bad business. You will note the depreciation charge was $495,289.00.
It is very difficult to make any forecast of earnings since
I have no way of knowing for sure how much of the equipment will be work-
ing and for how long. I will let you know when we hear anything from
the Bank.
Keep your fingers cross on Block 96.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Encls.
G. H. WALKER & CO.
INVESTMENT BANKERS
ST. LOUIS
ESTABLISHED 1900
PROVIDENCE
MEMBER
R
ECEIVE
D
NEW YORK STOCK EXCHANGE
MAR 18 1958
HARTFORD
BRIDGEPORT
ONE WALL STREET
WHITE PLAINS
NEW YORK 5, N.Y.
ZAPATA NALKERIAN"
4000
March 17, 1958.
Mr. George H. W. Bush,
Zapata Petroleum Corporation,
Box 3195,
Midland, Texas.
Dear Pop:
Hugo Money-Coutts of the Fleming organization, is
in town and we had lunch with him today. He has with
him an associate, Raymond Johnstone, who, Thatcher says,
will be the next partner of Robert Fleming & Co., Limited.
He is well-connected in England and is anxious to visit
Midland to see you and Hugh, and, if possible, to see a
drilling rig and in general familiarize himself with our
activities. He plans to arrive in Midland on Sunday
night, April 13th, at 9:46 p. m., and will go directly
to the hotel. Would you be good enough to make a
reservation for him at the hotel and note that he may
not be there until 10 or 11 o'clock. He will telephone
you or Hugh on Monday morning, and I hope you can have
some kind of a schedule mapped out for him and perhaps
turn him over to Sandy McCormick or Mickey Voltz for
guidance and seasoning. If there are any hitches in
this plan let me know but otherwise you can expect him
as outlined above.
Best to you and all.
Devotedly,
/Herlie
G. H. Walker, Jr.
GHWJr:G
P.S. Keeping furgers Crossed ou 96.
Keep me posted - K
XXX 3195
March 21, 1958
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
We had a wonderful trip to the Gulf and I feel this
was one of the best things we have ever done in the way of public
relations. All of our partners really enjoyed themselves. The
Price Company plane added considerably to the pleasure of every-
body. They picked us up here in Midland at noon and then the
following went to New Orleans: Harold C. Price, Jr., Stewart
Dewar and Alton Rowland all with H. C. Price Company; Walter Walne,
Vice President and Luke Thompson, chief geologist, for Felmont Oil
Corporation; and me. We were joined in New Orleans by Bradley
Martin, Charles Lea and Hadley Case. We lived it up a little in
New Orleans, but only Charles Lea and I managed to see Lily Christine,
the cat girl, and Chris, the bongo girl. Bradley Martin could not be
induced to join us, although I frankly think it would do him a world
of good. He turned out to be a most delightful guy. He is very hard
of hearing, but he had a good sense of humor and I think he enjoyed
himself immensely. He was extremely nice to me and I am glad he came.
Charles Lea was very enthusiastic and I think he will be
an excellent fellow for us to work with. I am glad he had an oppor-
tunity to see the rig and meet our partners. I tried to review our
basic philosophy about the whole deal with all the partners, and I
think we are all in accord about what we might do in the future.
We flew to Lafayette early Wednesday morning and were
met by Russ Mosby and Jack Davis of Continental. We drove down to
our base at Intercoastal City and there boarded 2 Sikorsky S-55
helicopters. The weather cleared up beautifully and we had clear
skies, thus permitting all of us to see many platforms in the Gulf.
The Vinegarroon was on bottom drilling when we got there and we
broke the group up into 2 tours conducted by Joe Tullos, our senior
tool pusher, and Russ Mosby. We left Lafayette about 5:00 in the
evening in Price's plane for Houston. As we boarded the plane the
co-pilot handed out drinks for everybody, so we had a delightful
and quick ride. All had dinner at the Houston Club, and yesterday
Mr. Walker
-2-
March 21, 1958
I had a chance to visit with Charles Lea. The group met again
for lunch which was followed by a visit to Tennessee Gas where I
introduced them to Bill Witmer, Vice President in charge of
gas purchases. All in all things worked out very nicely and I
wish you had been along. We should be running a log on Block 96
over the weekend which should be very important to us.
It looks like Tidewater and Cities Service will defi-
nitely take their working interest instead of the override. At-
lantic may take the override, and Continental, as of yesterday,
was undécided, but I feel they may come in for their working in-
terest. If they do, we are going to make a determined effort to
see if they will let Zapata operate, although they arethe operators
under the contract. If we operate we can schedule the drilling to
suit ourselves. These elections affect only Block 86, but I am
disappointed that any of the companies are going to come back in
for working interests since previous indications showed they were
going to take the override. It shows they like the deal, which is
reassuring, but we had rather go without reassurance and have the
working interest since we believe in the deal ourselves.
Best regards.
Yours very truly,
George H. W., Bush
GHWB :JMcB
G. H. WALKER & Co.
mly 26
TELEPHONE
JACKSON 2-4101
Dear HARTFORD 111 PEARL 3, STREET his CONN. Banch :
Chances are going aware of
offshore acTivity in Sulf of Paria
and off Venezula 1 as pm page
L+3 of enclosed Letter. If not
thought you might m be interested
Your recent ac activities having us
happy 1 if i bit broth less
Bud Fraham
G. H. WALKER & CO.
R
ECEIVE
INVESTMENT BANKERS
MAR 18 1958
D
ESTABLISHED 1900
ST. LOUIS
MEMBER
PROVIDENCE
NEW YORK STOCK EXCHANGE
HARTFORD
ONE WALL STREET
zapata
2-4000
BRIDGEPORT
NEW YORK 5, N.Y.
CABLE "WALKERIAN"
March 17, 1958
Mr. George H. W. Bush, President
Zapata Off-Shore Co.
P. 0. Box 3195
Midland, Texas
Dear Poppy:
Thank you very kindly for all your prompt drilling reports and general
information.
About a week a go I received a letter which you had sent me ten days
before which had come via Edinburgh. On the envelope someone had
written "letter stuck to another envelope". In this morning's mail I
found a long list of drilling reports which did not make sense and
checked the envelope to find that it had been addressed to a Mr.
Williams in St. Louis. I gather from this that something may be wrong
with your mailing machine and that envelopes are sticking together.
Please pardon the opening of Mr. Williams' letter. It was forwarded on
to him.
Looking forward to seeing any or all of you very soon, I remain
Very truly yours,
Vincent Vincent R. Smith, Jr.
VRS-Jr./sm
G. H. WALKER & CO.
INVESTMENT BANKERS
NEW YORK
ESTABLISHED 1900
PROVIDENCE
MEMBERS
TELEPHONE
HARTFORD
NEW YORK STOCK EXCHANGE
CENTRAL I-0838
BRIDGEPORT
BROADWAY & LOCUST
CABLE: "WALKERIAN"
WHITE PLAINS
ST. LOUIS I, MO.
March 17, 1958
RECEIVED
zapata
Mr. George H. W. Bush,
Zapata Off-shore Company
Box 3195
Midland, Texas
Dear Poppy:
Thanks for keeping in mind Alaska Oil and
Mineral. Again, let me say please do not inconveni-
ence yourself too greatly in this manner, but if you
do come across anything of interest I would certain-
ly like to have it.
Best wishes -
Sincerely yours,
Heave
George A. Newton
GAN:ee
G.H.WALKER &CO.
INVESTMENT BANKERS
ST. LOUIS
ESTABLISHED 1900
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL. HA 2-4000
WHITE PLAINS
NEW YORK 5,N.Y.
CABLE: "WALKERIAN"
December 19, 1957
Mr. George H. W. Bush, President
Zapata Off-Shore Company
901 West Missouri Avenue
Midland, Texas
Dear Poppy:
Reading & Bates Offshore Drilling Company expects delivery
of their Le Tourneau barge in March. They say they are dickering
with five major oil companies for its employment but nothing
finalized.
Will forward you a copy of the September 30, 1957 Annual
Report on above.
Fortune Magazine yesterday asked for a copy of Zapata Off-
Shore Annual Report which I sent. They said that they are still
considering writing an article on the company.
Merry Christmas,
Paul
Paul B. Woodruff
PBW:gl
Withdrawal/Redaction Sheet
(George Bush Library)
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
CLASS.
AND TYPE
04. Letter
From George Bush to G.H. Walker, Jr.
12/16/57
C
RE: Financial information (1pp.)
COLLECTION
George Bush Personal Papers
Zapata Oil File
Business Correspondence Files
FILE LOCATION
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-
OA/ID Number
1959]
Date Closed
10/26/99
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
F-1 National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
F-2 Release would disclose Internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
F-3 Release would violate a Federal statute [(b)(3) of the FOIA)
financial information ((a)(4) of the PRAJ
F-4 Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President and
information [(b)(4) of the FOIA]
his advisors, or between such advisors [a)(5) of the PRA)
F-6 Release would constitute a clearly unwarranted invasion of personal
P-6 Release would constitute a clearly unwarranted invasion of personal
privacy [(b)(6) of the FOIA]
privacy [(a)(6) of the PRA]
F-7 Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of
financial Institutions [(b)(8) of the FOIA]
F-9 Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIAJ
December 16, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
This weekend we encountered heaving shale on the Mississippi
River Fuel well, and it is impossible to take it any deeper. There-
fore, we are coming back up the hole to test another shale prior to
plugging and abandoning. The sand we are about to test does not
look as good as the stuff we have tested so far, $0 I am not par-
ticularly optimistic about this.
Continental has given us more time on the big deal, but we
still have not gotten any partners lined up. We have talked to
some 48 different individuals and oil companies, most of whom were
just flat out of money. We are, of course, disturbed by the pros-
pect of three rigs down for a period of time, and our people are
talking every day to the oil companies regarding contracts, but we
have no firm deals on the horizon.
I hate to bring you this rather tragic report, but perhaps
things will pick up before too long.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
December 11, 1957
well KoMc
Mr. Paul Woodruff
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Paul:
Thank you for your telegram about Dixilyn. I
appreciate very much your getting the answer for me.
Still not definite word on the farmout.
Yours very truly,
George H. W. Bush
GHWB:JMeB
CLASS OR SERVICE
WESTERN UN ON
SYMBOLS
This is a fast message
DL=Day Letter
unless its deferred char-
NL=Night Letter
acter is indicated by the
TELEGRAM
1201
LT=
International
proper symbol.
Letter Telegram
W.P. MARSHALL. PRESIDENT
The filing time shown in the date line on domestic telegrams is STANDARD TIME at point of origin. Time of receipt is STANDARD TIME at point of destination
-
DA152
(23)
D CDU577 PD=CD NEW YORK NY 10 405PME=
1957 DEC 10 PM 3 43
: GEORGE H W BUSH=
2703 SENTINEL AVE MIDLAND TEX=
=DIXILYN DRILLING CHRISTENS LE TOURNEAU BARGE JAN
14TH 1958 IS NEGOTIATING BUT HAS NO CONTRACTS SIGNED
AS YET FOR NEW BARGE=
PAUL WOODRUFF==
DIXILYN 14TH 1958=
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
Fell
December 9, 1957
Mr. Paul Woodruff
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Paul:
I am sorry I did not mention to you on the phone
today about the checking which I have done on Randall Dyer. I
called two people in Houston, both of whom were in the business
of syndicate drilling, and neither had ever heard of Rendall Dyer.
Listed in the Houston phone book there is a Randall Dyer II and
a Randall Dyer. The Randall Dyer II has an office located some-
where out of town in Houston. Both of the people with whom I
checked were going to do further checking, but each of them did
check with a couple of their friends and neither could turn up
any information at all on Dyer. This is somewhat strange in that
the oil business in Houston is small enough that these people
should have at least heard of him. Perhaps he is a new-comer to
Houston. If Mr. Hugue could give us some indication of the man's
past or where his deals were perhaps we could find out something
about him. I will let you know if my people come up with any-
thing really constructive.
Sorry to have so little information. Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
cc: Clarke Simonds
November 25, 1957
Mr. Paul Woodruff
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Paul:
I shall check on Mr. Randall Dyer just as soon as
I possibly can. Tell Mr. Hugue that I shall have some-
thing for you on this in the near future if I can
scare anything up.
Thanks for the report on Calvert Drilling.
Our report should be mailed the first week in
December. I think it is shaping up pretty well.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
G. H. walker & CO.
INVESTMENT BANKERS
ESTABLISHED 1900
ST. LOUIS
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL. HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
CABLE: "WALKERIAN"
November 21, 1957
Mr. George H.W. Bush, President
Zapata Off-Shore Company
901 West Missouri Avenue
Midland, Texas
Dear Poppy,
A friend of Clarke Simonds has asked me to get in touch with
you to see if you or any of your associates know of a Mr. Randall Dyer
of Houston. Dyer is understood to be in the business of promoting or
operating syndicates - oil deals whereby high tax bracket people
participate in oil drilling deals, etc.
If, without too much trouble on your part, you could get a line
{}}
on Randall Dyer, it would be appreciated. Mr. Fred J. Hugue, the friend
of Clarke Simonds making the inquiry, is interested in what kind of a
reputation Dyer has. Possibly you might have some suggestions as to how
to find out about Dyer. Mr. Hugue indicated his willingness to pay for the
expense of getting information on Dyer. However, as I know you are pretty
busy, please don't go to any trouble yourself about this.
Thank you for whatever you can do.
Very truly yours,
Pane
Paul B. Woodruff
PBW:ro
G. H. WALKER & CO.
INVESTMENT BANKERS
ESTABLISHED 1900
ST. LOUIS
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL.HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
CABLE: "WALKERIAN"
November 19, 1957
Mr. George H. W. Bush, President
Zapata Off-Shore Company
910 West Missouri Avenue
Midland, Texas
Dear Poppy:
Thank you for sending the copy of the stock-
holders' letter. I read it and passed it along to
Herbie.
We both feel that the letter represents an
excellent job in reviewing the year's operations
and financial accomplishments. It should make
interesting reading for stockholders and reinforce
their confidence despite temporary industry problems.
Very truly yours,
Paul
Paul B. Woodruff
P.S. Enclosing clipping from Wall St. Journal
PBW:geg
October 7, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I have looked over the transfers on Off-Shore and
Petroleum since August. It is very difficult to determine
any pattern for selling. There have not been many sales of
the stock in either Petroleum or Off-Shore. In Petroleum
no names stick in my mind, but in Off-Shore the following
seem to have done some selling:
Stillman
Spaulding
Kit Kat
Wonham Albert.
I don't think this information is particularly rele-
vant, but I thought you might like to know who seemed to be
disposing of their stock.
Yours very truly,
George H. W. Bush
GHWB:JMcB
October 7, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
The attached letter addressed to you gives you a general
picture of off-shore to date. I am sending copies of this letter
to Jerry Jamieson, Richard Fleming, Eric Ivory, Jim Bush, George
Erker with Hill Brothers, George Newton, Clarke Simonds, and perhaps
a few others. I have purposely left out the names of the companies
with whom we are dealing since I do not want anything to happen at
this time to jeopardize our deals. For your information alone at
this time, we have made a firm offer to Continental for a three-well
farmout on a 2700 acre block in the Vermillion Area. Their Explora-
tion Manager has told me that we have the deal and he is drawing up
a letter agreement for us to sign this Thursday. Unless one of the
CATC partners turns down the final deal, and at this time they have
verbally agreed they will go ahead, we should close the deal before
too long. This will be the second biggest farmout ever made in the
Gulf. We, of course, will have a lot of selling to do to get part-
ners, but Sterling Little feels that it will not be a difficult deal
to turn. This one deal could get us out of the doldrums, and, of
course, it could be the makings of a very nice oil reserve if we
should ever get lucky. Please do not mention Continental to anybody
until we get the deal closed. The farmout market is tremendously
competitive and I would hate for some other company to inadvertently
learn that we had the inside track on this trade. The deal is ex-
tremely complicated involving a Federal unit, some shut-in gas pro-
duction, and several other things, but it is one which has us tremen-
dously excited at the present. I am just hoping that Jack Davis,
Continental's Exploration Manager, can draft the deal as he has out-
lined it to us. I have had two meetings with him, and at the last
one we worked out the terms verbally and agreed the deal is ours,
subject, of course, to the approval of the letter agreement.
I hope you are feeling better. Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Attachment
September 30, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
While talking to Cyprus Mines in Houston last week, I
learned that twice within the last ten days they had been offered
the opportunity to "look at" Drilling & Exploration Company. Two
separate financial people in Houston, whose names I do not know
at this point, brought the deal to Mr. Cartwright. He was not in-
terested for Cyprus Mines in the deal, and he just casually mention-
ed it to me. I am wondering if any new dope is out on this matter.
I am hopeful that some of the very interesting farmout
deals which we are working on will materialize before too long. We
also have an opportunity to do some straight contracting with Gulf
and are working very hard on that. In spite of the fact there does
not seem to be a great deal of contract work, I cannot get bearish
about the off-shore business. We have looked at some fascinating
farmouts, and cannot help but feel some of them will break for us
before too long. If they do, we will be in deals which I never
would have thought we could acquire six months ago.
By the time this letter has been typed I will be in Cali-
fornia, but I did want to let you know about D & E.
Yours very truly,
George H. W. Bush
GHWB:JMcB
September 25, 1957
Mr. Paul Woodruff
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Paul:
Thank you very much for your letter of September 16.
I am glad to have your suggestions as to the Zapata Off-Shore
Company annual report. I can assure you we will take them into
consideration when we draw up our statement.
Thank you for your interest.
Yours very truly,
George H. W. Bush
GHWB:JMcB
September 24, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I talked to Ted Patterson yesterday and gave him my opinion
of the current tightness in the off-shore business. We will let
you know as things develop down here. Wayne is in New Orleans
now and I hope he will be able to scare up some contracts.
Not much to report from here. I am just burrowing out
from under a stack of papers. I may have to go to the West Coast
this week to talk to Mr. Pauley. If I don't do that I will prob-
ably head for the Gulf Coast.
Best regards,
Yours very truly,
George H. W. Bush
GHWB:JMcB
July 31, 1957
Mr. G. H. Walker, Jr.
Kennebunkport, Maine
Dear Herbie:
I am attaching the financial statements through June 30. The
statement of operations and earned surplus does not show any
charge off for dry hole expense. Part of this will, of course,
come out of the provision for federal income tax and part of it
will come out of net income.
The Mississippi River Fuel deal has spudded in and we feel that
we have worked out a pretty good deal. The West Delta 51 well
is drilling today at 7,041 ft. and we hope that it will be down
by the weekend or the first of next week. We are now negotiat-
ing with Tennessee Gas on & possible deal for the Scorpion in
between wells for California Company. We have not got & contract
for the Nola as yet. If ve had this worked out I would be able
to depart for Maine with a light head and clear conscious. I
am sending you a copy of a letter which I wrote today to Sid Lanier
Just for your information. I hope that he will take this matter
up with some of the wheels over there at Morgan's since I feel
we can do a real job for one of these gas companies and at the
same time we would have the wherewithal to keep our rigs planned
ahead on a very nice schedule.
Incidentally, I just received today an estimate from Sun Oil Com-
pany through Wayne of the dry hole costs in Block 67, the well
which we Just finished with the Vinegarroon. They figure that
this dry hole cost them $1,200,000. This can indeed be an expen-
sive business. The petroleum reports have been sent to the printers
and should be out toward the end of the week provided Morgan gets
the envelopes to Houston.
I guess that is about all of the news for now. I think I may get
up there Saturday, the 10th of August.
Yours very truly,
George H. W. Bush
GHWB/jk
Encls.
July 30, 1957
Mr. Bud Graham
G. H. Walker & Co.
111 Pearl Street
Hartford 3, Connecticut
Dear Mr. Graham:
Thank you so much for the Burnham and Company
Foreign Letter. It just so happens that we did nego-
tiate with the Standard of California Company to do
some drilling for them off Trinidad; however, we did
not get the work since Standard felt they could do it
cheaper by using another method. Thanks for sending
this information along to us.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
мите
BURNHAM AND COMPANY
RECEIVED
ZAPATA
FOREIGN
LETTER
JULY 1957
BURNHAM AND COMPANY, 15 BROAD STREET, NEW YORK 5, N. Y.
MEMBERS NEW YORK AND AMERICAN STOCK EXCHANGES
CABLE: COBURNHAM
TELEPHONE Digby 4-1400
TELETYPE N Y 1-2003
TELEX CALL LETTERS N Y 062
MARKET COMMENT
London
British stocks to U.S. buyers, with Canadian
Eagle bearer shares being the only important ex-
For American investors the most interesting
ception. Since this is a Canadian company the
recent development in London has been an alter-
bearer shares are regarded as a dollar stock, and
ation in certain exchange regulations.
once sold to a non-resident of the sterling area
they cannot now be bought back into London
Residents of certain parts of the sterling area
except for "investment dollars." The recent price
-e. g. Kuwait and Hong Kong - are allowed to
increase in London is a consequence of this change
purchase dollars in their local exchange markets,
in currency rates, and has not been reflected in
or to sell sterling in New York for dollars. The
New York.
dollars so acquired, in turn, could be legally re-
sold to U. K. residents for the purchase of dollar
The action of the London market in June
securities. In consequence, if the exchange
premium on "investment dollars" in London rose
featured a continued decline in government
above the discount on free sterling in Hong Kong
bonds, some of which have fallen to the lowest
and Kuwait, this technique could be employed as
price levels ever recorded. Equities, generally
an arbitrage between the two rates, and kept them
regarded as an inflation hedge, have continued
roughly in line with each other. It had the addi-
their rise, and the yield on the Financial Times
tional effect of enabling U.K. residents to acquire
index of industrials is now only 0.3% higher
dollar securities — at a premium — for sterling.
than the yield on 21/2% Consols.
The sterling, in turn, could be resold at a discount
in New York by residents of Hong Kong and
FINANCIAL TIMES INDUSTRIAL STOCK INDEX
Kuwait, and could be used by Americans to pur-
July 17
June 28
June 5
May 3
Year Ago
chase British securities.
204.6
204.8
203.0
204.6
174.9
The new regulations forbid U.K. residents to
It appears that there are two bases for the
purchase foreign securities from residents of other
London market's continued preference for equities.
parts of the sterling area, so that Kuwait and
One is that industrial output continues to recover
Hong Kong can no longer profit from the London
from the Suez setback; the official index showed
premium on such securities. The effects are two-
a seasonally-adjusted figure for May of 140
fold. First, there is now no source of supply of
(1948=100), which represents a three-year high
additional "investment dollars" for London, so
for May. On the other side of the balance sheet
that there is no theoretical limit on the premium
is continuing inflation: recent increases in coal
at which American securities may sell in London.
prices and railroad prices alone have raised in-
Secondly, there should be a sharp reduction in
dustrial costs by about 0.5% overall. The rise in
the amount of "free sterling" sold in New York
the gold and dollar reserves (up $248 million in
at a discount, because if Kuwait and Hong Kong
the first half of 1957) has been mostly due to
accept this discount, they can no longer offset it
non-recurring items and to the deferment of
by collecting a premium in London on the result-
liabilities. The prices of important sterling area
ant "investment dollars". The demand for discount
commodities have been weak and the softness of
sterling will now tend to be more equal to the
sterling itself has been disappointing. However,
supply, and the discount will be narrow (as it is
the expansion of the economy lends attraction to
at present). This will increase the dollar price of
carefully-selected equities.
WE INVITE INQUIRIES ON ANY FOREIGN SECURITIES AND INVESTMENTS.
ALL PRICES ARE GIVEN IN U. S. DOLLARS AND ARE SUBJECT TO CHANGE DUE TO MARKET FLUCTUATIONS.
FOREIGN LETTER
BURNHAM AND COMPANY
Amsterdam
previous day money became available through the
expiration of certain term savings contracts on
The latter part of June was marked by a reaction
which the German government allows tax conces-
in share prices, after small gains in the first two
sions. Both these developments tend to occur at
weeks of the month. The shares of the inter-
the beginning of the calendar quarter, and exer-
national companies, however, were ahead on bal-
cise a gradually diminishing influence over the
ance; Philips and A.K.U. have begun to partici-
ensuing three months. Accordingly, at the end
pate more fully in the strength of this group,
of June, German equities hit their lowest level for
while Royal Dutch and Unilever continue in de-
three years, but the influx of money generated a
mand. The dullness of the market in Dutch
modest recovery at the beginning of July.
domestic securities is explained by the stringent
governmental measures against inflation, which
"DER VOLKSWIRT" INDUSTRIAL STOCK INDICES
will restrict the domestic economy of the Nether-
July 3
June 26
May 28
Yr. End '56
Yr. End '55
lands. It is estimated that private domestic con-
170.8
166.7
172.9
180.9
204.6
sumption in 1957 will increase only 1.7% over
1956. Although wages will rise 6.7%, the increase
The increase in the money supply has had an
in prices should be held down to 4-5%. It should
easing effect on the money market, and call money
be encouraging to investors that these measures
is now available at 41/2%. Equity yields, however,
are expected to convert a previously anticipated
have risen — dividend increases having offset the
balance-of-trade deficit of fl. 200 million to a sur-
moderate price appreciation - and now stand at
plus of fl. 100 million.
around 5%. This still looks low compared to the
8% or better available on good industrial bonds,
but German investors show increasing anxiety
Germany
over wage increases and other inflationary factors,
July 1 was the quarterly payment date for interest
and recent rights issues on leading equities have
on a number of German bond issues, while on the
quickly gone to a premium.
COMPANY BRIEFS
Two Trinidad Oil Companies -
T.P.D. Compared With Shell Trinidad
Shell
T.P.D. and Shell Trinidad
T.P.D. (1)
Trinidad (2)
There has recently been great activity in New
1956 production, bbls.
4,071,000
7,277,000
Est. reserves, bbls.
88,000,000
120,000,000
York in the stock of Trinidad Petroleum Develop-
ment Company (controlled by British Petroleum).
Value of above @ 60¢/bbl.
$52,800,000
$ 72,000,000
This stock, which in 1956 traded in London be-
Working capital 1956 (less
senior securities)
$ 2,240,000
11,955,000
tween about $3.40 and about $6.65, is now quoted
Refinery, @ $500 per b/d
at around $18.50. This rapid advance may be
capacity
-
$ 18,500,000
attributed largely to two factors:
Total tangible asset
value
$55,040,000
$102,455,000
(1) Growing realization that proven oil re-
Common shares outst'ding
4,000,000
4,500,000 (3)
Tangible asset value/sh.
$13.76
$22.77 (4)
serves and acreage in Trinidad had, for all com-
panies, been markedly undervalued by comparison
Recent price
19
20
with similar assets elsewhere. This undervalua-
Recent price as % asset
value
142%
88% (5)
tion was highlighted in 1956 when The Texas
Company purchased Trinidad Oil Company Ltd.
Earned/sh. 1956
40¢
$1.37
for approximately twice the valuation previously
Cash flow/sh. 1956
1.25
2.42
placed on the company by the stock market.
Price/earnings ratio
47.5 X
14.6 X
Price/cash flow ratio
15.2 X
8.3 X
(2) Recognition of the potentials of Trinidad
Dividend 1956
23½
35c
offshore acreage, especially in the Gulf of Paria.
Yield (%)
1.2%
1.8%
Adjoining blocks totalling 148,200 acres, in the
(1) Year ended 7/31.
Venezuelan portion of the Gulf, have recently been
(2) Year ended 12/31.
(3) Increase in par value from 6s8d (93c) to £1 ($2.80) authorized
leased by a group of five major American com-
5/18/57.
panies for bonuses averaging $675 per acre. The
(4) Excluding refinery assets, $18.66.
(5) Excluding refinery assets, 107%.
upward revaluation of Trinidad oil securities has
proceeded apace; T.P.D. has merely led a general
Other Factors
trend. However, it appears that at least one stock
By all these statistical measurements, Shell
in the group - Shell Trinidad - still reflects, at
Trinidad is the cheaper stock. The background
present prices, little or no element of speculative
of the two companies lends little or no support
inflation. A comparative evaluation of these two
to the present unbalanced price relationship be-
companies is shown below.
tween them. For example:
FOREIGN LETTER
BURNHAM AND COMPANY
(1) T.P.D. is developing an interesting new
The last issue of the Foreign Letter contained
field at Moruga Bouffe, which is expected to con-
an evaluation of Royal Dutch/Shell as against
tribute to an increase of 13% in production for
Creole. Canadian Eagle can be similarly evaluated
fiscal 1957. But Shell Trinidad has, at Catshill,
against International Petroleum, which is also a
in the Ortoire district, the most important new
participant in Mene Grande Oil Company.
field established in Trinidad in 20 years. Produc-
Canadian
International
tion from Ortoire doubled in 1956; 28 wells were
Eagle
Petroleum
drilled (of which 19 were successful). In the
Recent Price
11½
58
first four months of 1957 total daily production
Shares outstanding
30,130,130
14,525,608
Market value of common (000)
$338,964
$842,485
was up 20% over the 1956 average, principally
Plus minority interest, etc. (000)
8,052
39,589
due to Ortoire.
Total Market Valuation (000)..
$347,016
$882,074
(2) T.P.D.'s connection with B.P., which owns
Less working capital (000)
46,470
87,200
77% of its stock, is matched by Royal Dutch/
Net market valuation
$300,546
$794,874
Shell's 85% ownership of Shell Trinidad. Both
÷ by Latin American production
companies are backed by majors.
1956 (000 bbls.)
17,005 (1)
44,859 (2)
Net market valuation per bbl.
$17.67
$17.72
(3) T.P.D., in 1956, showed cash flow of $1.24
(1) Venezuela (Mene Grande) and Colombia.
per barrel produced. Shell Trinidad, on the same
(2)-Venezuela (Mene-Grande)-and Peru:
basis, would have realized cash flow of $9.02
million. In fact its cash flow was $10.93 million.
The assets of International Petroleum - aside
The additional $1.91 million can be attributed to
from production with its concomitant reserves
superior integration. This amount represents a
and acreage - comprise: wholly-owned refining
cash return of 10.3% on our valuation of refinery
capacity of about 70,000 b/d (in Peru and Colom-
assets.
bia), which might be valued at $500 per b/d
capacity or $35 million, and miscellaneous invest-
(4) T.P.D. is exposed to possible developments
ments and advances totalling $25.3 million. If this
offshore through a 50% interest in 225,000 acres
total is deducted from the above "net market
of marine concessions. This is equivalent to 0.028
valuation," the balance of $734.6 million, which
acres per common share. Shell Trinidad has a ¹/₃
can be properly attributed to production, works
interest in Trinidad Northern Areas, which holds
out to $16.37 per barrel.
207,000 acres of offshore land. This is virtually
all in the promising Gulf of Paria, whereas 75%
of T.P.D.'s offshore acreage is on the less promis-
Other Assets
ing southern coast. Also, through T.N.A., Shell
Trinidad has a 1/6 interest in T.P.D.'s offshore
If Canadian Eagle's Latin American production
concessions, SO that its total offshore interest is
is appraised at this same figure of $16.37 per
equivalent to 106,500 acres, or 0.024 acres per
barrel, then it would appear that the market is
share. In the Gulf of Paria itself, T.P.D. has
attributing a total value of $22.2 million to all
28,500 net acres; Shell Trinidad has 78,500 net
the company's other assets. These assets include:
acres.
1) A tanker fleet of 349,798 deadweight tons,
These considerations confirm what is suggested
worth not less than $150 per ton, or $52.5 million.
by statistical analysis: that Shell Trinidad is con-
Ships under construction or on order will increase
siderably cheaper than T.P.D. There are persistent
the size of this fleet (allowing for retirements) to
reports from well-informed- sources of merger
500;000 tons by the end of 1959, and upwards of
negotiations between the two companies. If such
680,000 tons by the end of 1965.
a merger took place it appears that the terms
would have to recognize the greater asset values
2) A contract to purchase Kuwait crude oil,
and earning power in Shell Trinidad.
substantially below the open market price, which
Prospective purchasers should bear in mind
supplied nearly 11 million barrels in 1956 and is
that the floating supply of both stocks is small,
expected to supply 18 million barrels by 1959.
but that of Shell Trinidad is considerably the
Assuming that the contract runs for 20 years at
smaller of the two.
an average of 15 million barrels a year, and
valuing the oil arbitrarily at 5¢ a barrel to
Canadian Eagle Oil Company Limited
Canadian Eagle, this interest in Kuwait would be
worth $15 million.
A Current Appraisal
Canadian Eagle VS. International Petroleum
3) Refining contracts and marketing facilities
which generated sales of 58.9 million barrels in
In the May issue of this Foreign Letter were re-
1956. If these operations are worth 50c per barrel
ported preliminary earnings for Canadian Eagle.
sold, they add $29.45 million to Eagle's asset value.
More detailed information has since become avail-
able, justifying a re-appraisal of the company's
4) Real estate interests in London which are
position and prospects.
believed locally to be worth $12.6 million.
FOREIGN LETTER
BURNHAM AND COMPANY
Possible Additional Reserves
in the April, 1957 issue of the Foreign Letter. To
These four items alone total nearly $110 million,
bring these figures up to date for 1956:
or almost 5 times the value placed on them
by the market. But possibly more important than
Production (Venezuela and Columbia)
was
17,005,000 bbls.
the apparent undervaluation of existing assets, is
the possibility that new values will accrue to the
Crude oil contracts at Kuwait pro-
vided
company, especially in the form of additional re-
10,791,000 bbls.
serves. Through Mene Grande, Eagle has an 81/3%
Product sales, about equally divided
participation in almost 127,000 acres of conces-
between the U.K. and Latin Amer-
sions in Lake Maracaibo (in addition to Mene
ica, were
58,936,00 bbls.
Grande's existing concessions). Three good wells
Net Income was
$26.16 mil.
have already been drilled on the new acreage, and
(+ 21% vs. 1955)
several blocks of it are regarded as promising. It
Earnings per common share after
is generally estimated that average recoveries in
preferred dividends were
86.5¢
Lake Maracaibo are likely to run 50,000 barrels
The dividend (free of U.K. withhold-
an acre, allowing for dry holes. This indicates
ing tax) was
28¢
potential new reserves to Eagle's interest of 440
(vs. 24½ in 1955)
million barrels net of government royalty, which
in conjunction with existing reserves of some 225
The stock has appreciated by about 40% in a
million barrels in Venezuela and Colombia would
period of six months. However, due to new ex-
work out to 22 barrels a share. In terms of
change regulations (see "Market Comment") it
market value for the stock, the potential new
has reacted in New York from a high of 12 to the
reserves, assessed at a conservative 30¢ a barrel,
present level of around 111/4. The potentialities in
would add $132 million (nearly $4.40 per share)
Venezuela, the profitable long-term purchase con-
to the value of the Company.
tract for Kuwait crude, the expanding British
market (recently the scene of important product
1956 Results Reviewed
price increases), and the growing tanker fleet all
The corporate structure, background and past
hold out excellent prospects of rising earnings and
earnings record of Canadian Eagle are discussed
capital appreciation for Canadian Eagle.
FOREIGN SECURITIES QUOTATIONS
RECENT PRICES IN DOLLARS
Amsterdam
Borax Holdings, Ltd. (A. D. R.)
4.50-4.60
Royal Dutch FL. 20 - par value (N. Y.
Bowater Paper Corp. (A. D. R.)
5½1/2
S. E.)
$571/2-57%
Burmah Oil Company (A. D. R.)
14%-15½
Royal Dutch FL. 33½-par value (N. Y.
Canadian Eagle Oil (bearer)
10%-11
shs.)
95½-96
Gas Purification & Chemical
2½-3
Unilever N. V. FL. 1000-par value (For-
Hudson's Bay Company
37½-38½
eign shs.)
1172-1180
Lobitos
3.50-3.60
Unilever N. V. FL. 50 - par value
Rio Tinto Mines
13-13½
(A. D. R.'s)
58½-59
Shell Transport & Trading (N. Y. S. E.)
28%-28%
Philips' Lamps FL. 1000-par value (For-
Shell Trinidad
19-19½
eign shs.)
758-765
Selection Trust
19-19½
Philips' Lamps FL. 50 - par value
Trinidad Petroleum Development
18½-19
(bearer shs.)
37%-38½
Vickers Ltd.
5½-6
A. K. U. (Algemene Kunstzijde Unie)
Ultramar
13-13%
FL. 1000 (Foreign shs.)
480-495
South Africa**
A. K. U. (Algemene Kunstzijde Unie)
Anglo-American Corp. of S.A.
$16%-17%
FL. 50 (A. S. E.)
24-25
DeBeers (A. D. R.)
14%-15
Orange Free State Inv. Trust
6%-7½
Germany
$ 8-8%
Potgietersrust
2.00-2.20
I. G. Farben Liquidation Stubs
39-40
Virginia Orange Free State
1.25-1.35
Farbwerke Hoechst
Merriespruit
.47-57
Badische Anilin & Sodawerke
39-40
Farbwerke Bayer
41-42
Rhodesia*
168-170
Bancroft
$ 5-5½
Casella Farbwerke
Siemens & Halske (A. D. R.)
23½-23%
British South Africa (Chartered)
9½-9½
Deutsche Erdoel
39-40
Nchanga
30-30½
Ford of Germany
47-49
Rhokana
95-96½
Mannesmann
37-38
Tanganyika Concessions
21 1/4-23%
63-64
*
Portland Cement Heidelberg
Foreign stocks listed on the New York or American Stock Exchange
are included only if a comparison with the unlisted stock of the
Belgium
company may be useful. In other instances, they are deleted because
100-102
they can be ascertained from the daily newspapers. Burnham and
Union Miniere du Haut-Katanga
Company will make trading markets in many other foreign securities.
** All prices in London, South Africa and Rhodesia are for registered
Italy
shares unless otherwise indicated.
Montecatini (reg.)
4.10-4.25
For quotes or information regarding Foreign Securities
London**
only, Teletype NY 1-2003.
Anglo-Ecuadorian
$
For any other information Teletype NY 1-2262.
Associated Portland Cement
6-6%
Material prepared July 18, 1957.
THIS REPORT PREPARED FROM DATA BELIEVED RELIABLE BUT NOT GUARANTEED BY us, WITHOUT OUR FURTHER VERIFICATION OR INVESTI-
GATION AND DOES NOT PURPORT TO BE COMPLETE. IT IS NOT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER
TO BUY THE SECURITIES OF THE COMPANIES COVERED BY THIS REPORT. OPINIONS EXPRESSED ARE SUBJECT TO CHANGE WITHOUT NOTICE.
BURNHAM AND COMPANY. OR ONE OR MORE OF ITS PARTNERS, MAY HAVE A POSITION IN THE SECURITIES DISCUSSED HEREIN AND
BURNHAM AND COMPANY WILL BE PLEASED TO FURNISH SPECIFIC INFORMATION IN THIS REGARD AT ANY TIME UPON REQUEST.
PRINTED IN U.S.A.
July 11, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I thought you might be interested in the at-
tached letters which we received. After you have had
a chance to glance them over, would you please return
them to me for our files.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Attachments
June 6, 1957
Mr. G. H. Walker, Jr.
G.H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I heard a rumor that the C. G. Glasscock Tidelands Company
can be bought, and we do not know whether this is something Zapata Off-
Shore Company might be interested in. However, we would like to know if
there is any truth to this. I know Mr. Glasscock slightly and have talk-
ed to Jimmy Storm who is their manager, but I do not feel I can call them
about this. Do you by any chance know somebody at Eastman Dillon who
might know about this? Another possibility might be Pete Lindley at
Mutual since Mutual made Glasscock a rather substantial loan. I would
appreciate any dope you might get on this.
We heard from the California Company today and we did not
get the Trinidad deal. I was really disappointed over this. The job went
to the Off-Shore Company who bid with a deck barge. Wayne tells me does
not believe a deck barge will work on this particular job since he feels
the weather will be such the deck barge will be off location a great
deal of the time. The California Company apparently does not agree with
this, but in any event we would not have elected to bid it with such
equipment. A deck barge is a great deal cheaper than any of the equip-
ment we own, and makes sence that Off-Shore's bid will be lower than ours.
Our only foreign job working now is the Cay Sal between Florida and Cuba.
We should have our bid in on Tuesday. At this point it looks like they
will use a mobile rig and it will be between our SCORPION and some rig
of the Off-Shore Company. I believe we can underbid them on this job.
If they go to some other type of equipment we probably will not get it,
however.
The off-shore farmout spudded in today and we will be
putting out our announcement this coming week to all the shareholders
along with the attached brochure.
With best regards,
Yours very truly,
George H. W. Bush
GHWB:JMcB
Attachment
June 4, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Attached is the estimate of cash flow on Off-Shore.
We are, of course, anxious to keep these figures confidential,
but I believe they are more realistic than any we have seen
to date. We do not yet have the actual figures for May, but
the April figures were as follows:
Income
$598,154.78
Total expenses
$390,421.60
Net income before pro-
vision for taxes
$207,733.18
Provision for taxes
$108,000.00
Net income for period
$ 99,733.18
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
May 14, 1957
Mr. Reginald W. Pressprich, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Reg:
Phil Neuhaus has sent me the annual statement and the memorandum
to underwriters on Levingston. He mentioned that perhaps you would
like to hear from me on this. I do not know a great deal about
Levingston's affairs, although I do know the Company is held in high
regard in Houston. A great deal of their business has been from the
construction of the Deep Water off-shore drilling tenders. My per-
sonal feeling is that the off-shore tender business does not look
good for the short term. Some of the off-shore tenders are not working
and I do not feel that there is much demand for tenders right now.
This, of course, could change.
The Malloys are very well regarded and I think that in the oil
industry Levingston has established the reputation of being an excel-
lent company. I do not know any of the management people other than
the Malloys.
Please let me know if I can get you any specific information on
Legingston. I realize the above remarks are very general and probably
not too helpful, but I just do not know too much.
Best regards,
Yours very truly,
George H. W. Bush
GHWB :JMcB
RIDER "A"
Page 1 - GHW draft
however, they do not tell the full story, since the 1957 figures are
lower than normally might be expected due to two factors:
(1) The Company's drilling tender NOLA I was dry-docked during
January and some abnormal expenses were incurred, and
(2) The income figures are further reduced by certain sub-
stantial non-recurring expenses in connection with the completion
of the VINEGARROON.
Cash earnings, before taxes in these months were $
per share, but this accounting period only reflected two days opera-
tions by the VINEGARROON. With all equipment operating cash earnings
could be raised to a $3.00 per share annual rate, this figure being
the sum of depreciation and pre-tax net income.
RIDER "B"
Page 5 - BHW draft
Zapata Off-Shore Company's goal is to continue its position of leader-
ship as offshore drilling contractors and to acquire interests in off-
shore oil production.
May 3, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5; New York
Dear Herby:
I AM leaving for a week's business trip to New Orleans
to do some concentrated work on the off-shore farmout situation. Since
I will be gone then, and since I probably won't be in New York when you
and Hugh talk about the financing, I thought I would put down some of
my thoughts on the subject for what they might be worth.
In the first place, I feel like everyone else that we
should immediately do some financing. We have been carrying on a very
active drilling program, and our cash position will just not sustain
this much activity for the rest of the year. In fact, we must drastic-
ally curtail our operations until Jameson pays out. Incidentally, the
oil payments look like they should be retired in October.
Our, general feeling towards Zapata Peyroleum is one of
real optimism. Personally, I am more optimistic than I have ever been,
because I firmly believe that the caliber of the well deals has really
improved. I also feel that Zspata is better known now than before and
this alone will cause us to see more and more merger type deals of a
substantial nature.
The off-shore picture, though admittedly difficult to
evaluate, seems to me to be well worth the time spent on it by Zapata
Petroleum-lately my time for the most part. If we felt that Zapata
Off-Shore was to be relegated to the sole role of domestic drilling
contractor, we would feel that perhaps we had arrived at the fullest
possible value of one of Zapata Petroleum's principal assets--its stock
in Zapata Off-Shore Company. But the more talking we do about farmouts
and foreign drilling, the more convinced I become that we might make a
mistake to soft-peddle our interest in off-shore in any way. If we
have misjudged the domestic demand situation, I would probably be forced
to change my feeling, since I know well that we cannot stand much "down
time"; but so far, though we see increasing competition, we do not see
prolonged periods of idle rig time. Frankly, as competition increases
we may have to cut prices somewhat. So far we have seen no indication
that wells are not being drilled because of the rates charged by off-
shore contractors.
We do not view Zapata Off-Shore Company as strictly a
Gulf Coast drilling contractor. We want to be known as an excellent
Mr. Walker
-2-
May 3, 1957
drilling company, and frankly I feel we are. But further, we want to
build production in off-shore and we want to get into foreign areas where
profits are high, contracts are long, and the possibility of opening up
other opportunities is great. Admittedly, we have not succeeded as yet
in attaining either of these goals, but I cannot be discouraged. I re-
turned from California somewhat disappointed since we had hoped to sign
up our Trinidad deal, but at the same time convinced that there are many
virgin areas of off-shore opportunity all over the world. Our entry into
these areas, when and if we get in, will, of course, be as drilling con-
tractors, but I feel that once we go abroad we will get into other plays.
In the field of fermouts we remain convinced that there
are good opportunities. These arrangements take lots of work and one of
our current weak spots is that we do not have someone in the Gulf Coast
area all the time who is actively seeking out deals. Until recently we
have had our hands full with the very important task of financing the
VINEGARROON and getting it to work, while keeping our other units going.
And so I think it is safe to say that we recognize soft
spots in the off-shore business, but we firmly believe we are in on the
ground floor of what will one day be a tremendous industry, and we are
in on a good basis.
Hugh and I discuss the role that offeshore should play in
our total picture a good bit. We are well aware that there are different
opinions amongst the directors as to how much of my time should be com-
mitted to off-shore, and frankly our own feelings sometimes change on
this. Jim Gammell feels that we should work towards the day when our
commitment in time to off-shore is reduced to a minimum. I agree with
him that we should do this, but the big question is when should we begin
to taper off our actual participation or when should we begin to look
for a deal for Zapata Off-Shore Company by perhaps merging with another
similar company which would provide top management on the financial and
planning side and thereby free Zapata Petroleum of any time commitment.
I frankly do not feel that now is the time. As mentioned above, if a
real softening of demand shows up soon, then we should actively move in
the above direction, but for the immediate future I would have to say
that we are confident and that we feel off-shore has big growth possi-
bilities.
All of this boils down to the fact that at this time we are
reluctant to reduce our percentage ownership in off-shore if it can be
avoided. The mechanics and the expenses of a dual-conversion on a Zapata
Petroleum debenture financing are bad, there is no question about this.
We need two audits; we need to keep the off-shore registration statement
effective at SEC; we need essentially two registrations instead of one;
but it is not only the burdensome mechanics which trouble us.
The main thing is this--if we feel confident as to Off-
Shore's future, shouldn't we resist giving up this asset as strongly as
Mr. Walker
-3-
May 3, 1957
possible? I feel that first in importance to Zapata Petroleum is that
it do this financing--this I feel is unquestionably more important than
keeping our Off-Shore stock intact, but at this time I believe I would
rather take a tougher deal in Zapata Petroleum, using Petroleum stock
alone, than I would go the dual conversion route, for I can't help but
feel that sooner or later an increase in the Off-Shore stock will come,
and when it does, it should more than off-set any weakening in Petroleum
stock. By this I don't mean we would want to be associated with a doggy
offering and I'm equally sure you wouldn't go on any such deal, but
perhaps there is some way to make an especially attractive streight
Petroleum offering:
We know the problem facing you and we admittedly do not
like to argue and fight with the pencil-sharpeners who compare balance
sheets all day every day, such as we ran into on D & E, but perhaps
there is some intermediate ground. A couple of good wells here would
help a lot--we know that.
In conclusion, I guess I cannot bring myself to be any-
thing but optimistic about the future of Off-Shore. Feeling this way
it secms to me we should continue to spend time on it--a lot of time,
and if we spend a lot of time and have confidence in it, I just hate to
give it up--any of it, unless there really is no other way to accomplish
our admitted first immediate goal, namely, a successful $3 million
financing for Petroleum.
If I come up with any other observations as a result of
my next week's trip I will add them to the thoughts above.
Very truly yours,
George H. W. Bush
GHWB:JMcB
May 3, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herby:
I am leaving for a week's business trip to New Orleans
to do some concentrated work on the off-shore farmout situation. Since
I will be gone then, and since I probably won't be in New York when you
and Hugh talk about the financing, I thought I would put down some of
my thoughts on the subject for what they might be worth.
In the first place, I feel like everyone else that we
should immediately do some financing. We have been carrying on 2 very
active drilling program, and our cash position will just not sustain
this much activity for the rest of the year. In fact, we must drastic-
ally curtail our operations until Jameson pays out. Incidentally, the
oil payments look like they should be retired in October.
Our general feeling towards Zapata Peyroleum is one of
real optimism. Personally, I am more optimistic than I have ever been,
because I firmly believe that the caliber of the well deals has really
improved. I also feel that Zapata is better known now than before and
this alone will cause us to see more and more merger type deals of a
substantial nature.
The off-shore picture, though admittedly difficult to
evaluate, seems to me to be well worth the time spent on it by Zapata
Petroleum--lately my time for the most part. If we felt that Zapata
Off-Shore was to be relegated to the sole role of domestic drilling
contractor, we would feel that perhaps we had arrived at the fullest
possible value of one of Zapata Petroleum's principal assets--its stock
in Zapata Off-Shore Company. But the more talking we do about farmouts
and foreign drilling, the more convinced I become that we might make a
mistake to soft-peddle our interest in off-shore in any way. If we
have misjudged the domestic demand situation, I would probably be forced
to change my feeling, since I know well that we cannot stand much "down
time"; but so far, though we see increasing competition, we do not see
prolonged periods of idle rig time. Frankly, as competition increases
we may have to cut prices somewhat. So far we have seen no indication
that wells are not being drilled because of the rates charged by off-
shore contractors.
We do not view Zapata Off-Shore Company as strictly a
Gulf Coast drilling contractor. We want to be known as an excellent
Mr. Walker
-2-
May 3, 1957
drilling company, and frankly I feel we are. But further, we want to
build production in off-shore and we want to get into foreign areas where
profits are high, contracts are long, and the possibility of opening up
other opportunities is great. Admittedly, we have not succeeded as yet
in attaining either of these goals, but I cannot be discouraged. I re-
turned from California somewhat disappointed since we had hoped to sign
up our Trinidad deal, but at the same time convinced that there are many
virgin areas of off-shore opportunity all over the world. Our entry into
these areas, when and if we get in, will, of course, be as drilling con-
tractors, but I feel that once we go abroad we will get into other plays.
In the field of farmouts we remain convinced that there
are good opportunities. These arrangements take lots of work and one of
our current weak spots is that we do not have someone in the Gulf Coast
area all the time who is actively seeking out deals. Until recently we
have had our hands full with the very important task of financing the
VINEGARROON and getting it to work, while keeping our other units going.
And so I think it is safe to say that we recognize soft
spots in the off-shore business, but we firmly believe we are in on the
ground floor of what will one day be a tremendous industry, and we are
in on a good basis.
Hugh and I discuss the role that Toff-shore should play in
our total picture a good bit. We are well aware that there are different
opinions amongst the directors as to how much of my time should be com-
mitted to off-shore, and frankly our own feelings sometimes change on
this. Jim Gammell feels that we should work towards the day when our
commitment in time to off-shore is reduced to a minimum. I agree with
him that we should do this, but the big question is when should we begin
to taper off our actual participation or when should we begin to look
for a deal for Zapata Off-Shore Company by perhaps merging with another
similar company which would provide top management on the financial and
planning side and thereby free Zapata Petroleum of any time commitment.
I frankly do not feel that now is the time. As mentioned above, if a
real softening of demand shows up soon, then we should actively move in
the above direction, but for the immediate future I would have to say
that we are confident and that we feel off-shore has big growth possi-
bilities.
All of this boils down to the fact that at this time we are
reluctant to reduce our percentage ownership in off-shore if it can be
avoided. The mechanics and the expenses of a dual-conversion on a Zapata
Petroleum debenture financing are bad, there is no question about this.
We need two audits; we need to keep the off-shore registration statement
effective at SEC; we need essentially two registrations instead of one;
but it is not only the burdensome mechanics which trouble us.
The main thing is this--if we feel confident as to Off-
Shore's future, shouldn't we resist giving up this asset as strongly as
Mr. Walker
-3-
May 3, 1957
possible? I feel that first in importance to Zapata Petroleum is that
it do this financing--this I feel is unquestionably more important than
keeping our Off-Shore stock intact, but at this time I believe I would
rather take a tougher deal in Zapata Petroleum, using Petroleum stock
alone, than I would go the dual conversion route, for I can't help but
feel that sooner or later an increase in the Shore stock will come,
and when it does, it should more than off-set any weakening in Petroleum
stock. By this I don't mean we would want to be associated with a doggy
offering and I'm equally sure you wouldn't go on any such deal, but
perhaps there is some way to make an especially attractive straight
Petroleum offering.
We know the problem facing you and we admittedly do not
like to argue and fight with the pencil-sharpeners who compare balance
sheets all day every day, such as we ran into on D & E, but perhaps
there is some intermediate ground. A couple of good wells here would
help a lot--we know that.
In conclusion, I guess I cannot bring myself to be any-
thing but optimistic about the future of Off-Shore. Feeling this way
it seems to me we should continue to spend time on it--a lot of time,
and if we spend a lot of time and have confidence in it, I just hate to
give it up--any of it, unless there really is no other way to accomplish
our admitted first immediate goal, namely, a successful $3 million
financing for Petroleum.
If I come up with any other observations as a result of
my next week's trip I will add them to the thoughts above.
Very truly yours,
George H. W. Bush
GHWB:JMcB
May 3, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herby:
I am leaving for a week's business trip to New Orleans
to do some concentrated work on the off-shore farmout situation. Since
I will be gone then, and since I probably won't be in New York when you
and Hugh talk about the financing, I thought I would put down some of
my thoughts on the subject for what they might be worth.
In the first place, I feel like everyone else that we
should immediately do some financing. We have been carrying on a very
active drilling program, and our cash position will just not sustain
this much activity for the rest of the year. In fact, we must drastic-
ally curtail our operations until Jameson pays out. Incidentally, the
oil payments look like they should be retired in October.
Our general feeling towards Zapata Peyroleum is one of
real optimism. Personally, I am more optimistic than I have ever been,
because I firmly believe that the caliber of the well deals has really
improved. I also feel that Zapata is better known now than before and
this alone will cause us to see more and more merger type deals of a
substantial nature.
The off-shore picture, though admittedly difficult to
evaluate, seems to me to be well worth the time spent on it by Zapata
Petroleum-lately my time for the most part. If we felt that Zapata
Off-Shore was to be relegated to the sole role of domestic drilling
contractor, we would feel that perhaps we had arrived at the fullest
possible value of one of Zapata Petroleum's principal assets--its stock
in Zapata Off-Shore Company. But the more talking we do about farmouts
and foreign drilling, the more convinced I become that we might make a
mistake to soft-peddle our interest in off-shore in any way. If we
have misjudged the domestic demand situation, I would probably be forced
to change my feeling, since I know well that we cannot stand much "down
time"; but so far, though we see increasing competition, we do not see
prolonged periods of idle rig time. Frankly, as competition increases
we may have to cut prices somewhat. So far we have seen no indication
that wells are not being drilled because of the rates charged by off-
shore contractors.
We do not view Zapata Off-Shore Company as strictly a
Gulf Coast drilling contractor. We want to be known as an excellent
Mr. Walker
-2-
May 3, 1957
drilling company, and frankly I feel we are. But further, we want to
build production in off-shore and we want to get into foreign areas where
profits are high, contracts are long, and the possibility of opening up
other opportunities is great. Admittedly, we have not succeeded as yet
in attaining either of these goals, but I cannot be discouraged. I re-
turned from California somewhat disappointed since we had hoped to sign
up our Trinidad deal, but at the same time convinced that there are many
virgin areas of off-shore opportunity all over the world. Our entry into
these areas, when and if we get in, will, of course, be as drilling con-
tractors, but I feel that once we go abroad we will get into other plays.
In the field of farmouts we remain convinced that there
are good opportunities. These arrangements take lots of work and one of
our current weak spots is that we do not have someone in the Gulf Coast
aréa all the time who is actively seeking out deals. Until recently we
have had our hands full with the very important task of financing the
VINEGARROON and getting it to work, while keeping our other units going.
And so I think it is safe to say that we recognize soft
spots in the off-shore business, but we firmly believe we are in on the
ground floor of what will one day be a tremendous industry, and we are
in on a good basis.
Hugh and I discuss the role that off-shore should play in
our total picture a good bit. We are well aware that there are different
opinions amongst the directors as to how much of my time should be com-
mitted to off-shore, and frankly our own feelings sometimes change on
this. Jim Gammell feels that we should work towards the day when our
commitment in time to off-shore is reduced to a minimum. I agree with
him that we should do this, but the big question is when should we begin
to taper off our actual participation or when should we begin to look
for a deal for Zapata Off-Shore Company by perhaps merging with another
similar company which would provide top management on the financial and
planning side and thereby free Zapata Petroleum of any time commitment.
I frankly do not feel that now is the time. As mentioned above, if a
real softening of demand shows up soon, then we should actively move in
the above direction, but for the immediate future I would have to say
that we are confident and that we feel off-shore has big growth possi-
bilities.
All of this boils down to the fact that at this time we are
reluctant to reduce our percentage ownership in off-shore if it can be
avoided. The mechanics and the expenses of a dual-conversion on a Zapata
Petroleum debenture financing are bad, there is no question about this.
We need two audits; we need to keep the off-shore registration statement
effective at SEC; we need essentially two registrations instead of one;
but it is not only the burdensome mechanics which trouble us.
The main thing is this--if we feel confident as to Off-
Shore's future, shouldn't we resist giving up this asset as strongly as
Mr. Walker
-3-
May 3, 1957
possible? I feel that first in importance to Zapata Petroleum is that
it do this financing--this I feel is unquestionably more important than
keeping our Off-Shore stock intact, but at this time I believe I would
rather take a tougher deal in Zapata Petroleum, using Petroleum stock
alone, than I would go the dual conversion route, for I can't help but
feel that sooner or later an increase in the Off-Shore stock will come,
and when it does, it should more than off-set any weakening in Petroleum
stock. By this I don't mean we would want to be associated with a doggy
offering and I'm equally sure you wouldn't go on any such deal, but
perhaps there is some way to make an especially attractive straight
Petroleum offering.
We know the problem facing you and we admittedly do not
like to argue and fight with the pencil-sharpeners who compare balance
sheets all day every day, such as we ran into on D & E, but perhaps
there is some intermediate ground. A couple of good wells here would
help a lot--we know that.
In conclusion, I guess I cannot bring myself to be any-
thing but optimistic about the future of Off-Shore. Feeling this way
it seems to me we should continue to spend time on it--a lot of time,
and if we spend a lot of time and have confidence in it, I just hate to
give it up--any of it, unless there really is no other way to accomplish
our admitted first immediate goal, namely, a successful $3 million
financing for Petroleum.
If I come up with any other observations as a result of
my next week's trip I will add them to the thoughts above.
Very truly yours,
George H. W. Bush
GHWB:JMcB
May 1, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I thought you might like to have the attached
snapshots taken the day we were out on the VINEGARROON.
One picture was taken on top of the crew quarters facing
the back leg. In the background you will note the ladder
going up to the helicopter platform. The other was taken
from the helicopter just as we were leaving the barge. It
it not a particularly good shot. It does show the Zapata
emblem.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Attach.
May 1, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Here are the corrected figures which were
wired to you this afternoon.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Attachments
Withdrawal/Redaction Sheet
(George Bush Library)
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
CLASS.
AND TYPE
05. Letter
From George Bush to G.H. Walker, Jr.
4/30/57
C
RE: Financial information (2 pp.)
COLLECTION
George Bush Personal Papers
Zapata Oil File
Business Correspondence Files
FILE LOCATION
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-
OA/ID Number
1959]
Date Closed
10/26/99
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
F-1 National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
F-2 Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRAJ
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
F-3 Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
F-4 Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President and
information [(b)(4) of the FOIA]
his advisors, or between such advisors [a)(5) of the PRAJ
F-6 Release would constitute a clearly unwarranted invasion of personal
P-6 Release would constitute a clearly unwarranted Invasion of personal
privacy [(b)(6) of the FOIA]
privacy [(a)(6) of the PRA]
F-7 Release would disclose information complied for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
F-9 Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
April 29, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I am attaching a resume on George Pfau. To be quite frank,
he is not happy at Carl W. Stern & Co., Inc., although he is an of-
ficer in this company. The firm is not a first rate outfit and I
think that George feels he would be able to do much better with a
larger and better known company. His particular interest is in
merger type deals. He tells me that White, Weld has a new office
in San Francisco. He feels that he is not in too good a position
to approach other people at this point while he is a member of the
Stern firm. I am wondering if you know anyone over at White, Weld
well enough to make a general inquirey to see if they could use a
good man in their San Francisco office. Pfau is a very sincere and
honest fellow, and I am sure he would make them just the type of
hand they need. I am not too intimate with his ability in the
stock and bond business, but I feel he would be very good at it.
While in San Francisco last week he had a very nice luncheon for
me at which he drummed up Zapata enthusiasm. I would like to see
him located with a good strong firm on the West Coast. He is not
the least bit interested in leaving San Francisco. Please let me
know if you have any ideas on this.
I had a very hectic trip to the West Coast. We worked pretty
hard trying to convince Dominion Oil Company, a subsidiary of the
Standard Oil Company of California, that they should put the NOLA I
in Trinidad. They will let us know on this on Friday. They are not
asking for any other bids on this type of equipment, but there is a
chance they will go to a smaller unit, thereby saving on the immediate
outlay. We are hopeful they will go along on our deal, but it is hard
to predict at this time exactly what they will do.
I am enclosing my check for the Texas Gulf stock purchased on
April 25, 1957. Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Encl.
G. H. WALKER & CO.
INVESTMENT BANKERS
ESTABLISHED 1900
ST. LOUIS
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL.HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
CABLE: "WALKERIAN"
April 25, 1957
Mr. J. Hugh Liedtke
Zapata Petroleum Corporation
Box 2216
Midland, Texas
Dear Hugh:
As I told you over the telephone, we are anxious to put out a good
up-to-date story on Zapata Offshore, giving the six months figures and
showing a balance sheet as of the end of the first six months - March
31, 1957.
I am enclosing herewith our draft which we wish you would go over with
George and Bill Brumley and return to us with the figures just as soon as
you possibly can. We also would like your comments, criticism, or whatever
changes might better or more accurately portray the story. We will
appreciate all the help from you all that we can get and trust that this
will be another constructive forward step in the life of the Zapata
Companies. We intend to give this circular a very wide distribution and
to advertise it extensively.
With all the best always,
Devotedly,
Hirbie
G. H. Walker, Jr.
GHW:mn
April 10, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I received the prospectus on the Prince Marine Drilling
and Exploration Company. George and I have gone over this matter
again and do not believe that any of the Zapata companies would
be interested in it at the present time. As you know, we looked
at this deal before Shields & Company made a public offering out
of it. The oil reserves of the company are not significant and
we do not feel that it would be advisable for us to get further
into the land or barge drilling business at the present time.
Both Poppy and I appreciate Virge Sherrill's interest
in working out some sort of a merger deal. Possibly this deal
may be of interest at some later date, and we will certainly keep
it in mind.
With best regards,
Sincerely,
J. Hugh Liedtke
JHŁ:JMcB
G. H. walker & CO.
INVESTMENT BANKERS
NEW YORK
ESTABLISHED 1900
PROVIDENCE
MEMBERS
TELEPHONE
HARTFORD
NEW YORK STOCK EXCHANGE
CENTRAL I-0838
BRIDGEPORT
broadway & LOCUST
CABLE: "WALKERIAN"
WHITE PLAINS
ST. LOUIS I, MO.
April 4, 1957
AIR MAIL
Mr. George H. W. Bush,
Zapata Petroleum Company,
2218 First City National Bank Bldg.
Houston, Texas
Dear Poppy:
The annual reports for Ocean Drilling and
for Glasscock Company apparently are not going to
be available for another ten days to two weeks - at
least that is what we have been told by parties very
close to the trading markets of each security. As
soon as we get copies, will see that they are for-
warded to you.
In the meantime, you might like to see a
write-up on Glasscock, which Eastman Dillon has re-
cently prepared and a writeup on the °cean Drilling
& Exploration which Equitable has just started dis-
tributing.
Best wishes to Hugh and warmest personal
regards to yourself.
Sincerely,
George George A. Newton
prother 60 50 w
GAN:ee
Enclosures - 2
RECEIVED APR1
ZAPATA
April 2, 1957
Mr. George Newton
G. H. Walker & Co.
503 Locust Street
St. Louis, Missouri
Dear George:
If you have an extra copy of the G. c. Glasscock
annual report and an extra one for the Ocean Drilling &
Exploration Company, would you please forward them to me
at your earliest convenience.
Thanks and best regards.
Yours very truly,
George H. W. Bush
JMcB
REINHOLDT & GARDNER
ST. LOUIS NEW YORK
RUSSELL E. GARDNER, JR.
MEMBERS
NEW YORK STOCK EXCHANGE
J.W. REINHOLDT, JR.
AMERICAN STOCK EXCHANGE/ASSOCIATE)
FRED W. GARDNER
400 LOCUST STREET
HENRY F. LANGENBERG
MIDWEST STOCK EXCHANGE
A.A. CHRISTOPHEL
CHICAGO BOARD OF TRADE
JOHN H. HAYWARD
ST. LOUIS 2, MISSOURI
WARREN L.DAHL
JOHN R GARDNER
BURCH WILLIAMS
TELEPHONE
DANIEL UPTHEGROVE, JR.
CENTRAL I-6640
March 29, 1957
Pop
be
Mr. Herbert Walker
would
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Herbie:
thoughtorest this toy ou Herlie
Enclosed is a report on Ocean Drilling and Exploration
Company, which the Equitable Securities Corporation in co-
operation with our firm, has just completed. Reinholdt &
Gardner has been closely identified with Odeco from its in-
ception and my partner, John Hayward, has been on the board
since its beginning in 1953.
I believe you will find that the company's management
is highly regarded by those engaged in this offshore explora-
tion and development business. The administrative and technical
staffs are supplemented by the personnel of the Murphy Corpora-
tion, whose president, C. H. Murphy, Jr., is chairman of the
board of Odeco.
Since this report was written, Odeco has chartered for a
15 month period a fifth barge (similar to the John Hayward)
for the purpose of taking advantage of doing some of its own
development work and also to take advantage of farm-outs to
which it is exposed.
If you wish further information about Odeco or would like
to have additional reports, be sure to let me know. I might
add that we are active in trading this over-the-counter situa-
tion and from time to time maintain a position in the stock.
Sincerely,
H. tany F. Langenberg
HLF-hb
February 25, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Our Check #2581 on the Texas National Bank
dated January 31, 1957, in the amount of $15,000
should have been mailed to you on Saturday, February 9.
If you can find no record of this please let us know
and we will stop payment on the check and forward you
a substitute.
I hope this has not caused you any inconvenience.
Yours very truly,
George H. W. Bush
GHWB:JMcB
January 2, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I have just talked to Dr. Weatherby in Tulsa. He assures me
that Amerada is still very interested in finding deals, but at this point
they do not have anything definitely lined up. I told him that our prac-
tical problem was that before too long we were going to have to commit
the barge to do some drilling since we cannot afford to be shut down at
all. He understood this perfectly and told me if they did not have any
concrete deals we should go ahead and make a deal with someone else to
drill a well or two. He could continue to look for deals. He has talked
to several of the major companies, a couple of which have been quite en-
couraging, although they do not have any farmouts immediately available.
Some of the companies were quite discouraging saying they definitely would
not make any farmouts.
To summarize, the deal is still on, but Amerada does not have
any definite place to drill at this minute. I am going down to Houston
tomorrow and plan to be there some next week at which time I will have a
better
for our short term position. Our own tax picture will require
we do some drilling this year, commencing at least before June.
Best regards.
Yours very truly,
George H. W. Bush
GHWB :JMcB
November 30, 1956
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Because of our plans to do some drilling which could affect
our provisions for taxes tremendously, it is difficult to make
any accurate predictions as to Zapata Off-Shore's earnings for a
full year. However, the attached figures might be useful to you
as estimates. We have supplied these to the banks in essentially
this form. These figures are for one full year of operations with
the NOLA, the SCORPION and the new rig all working full time.
Please bear in mind these figures are estimates and could change
substantially. The interest figure includes interest on all the
debentures. If we call the debentures we will, of course, be able
to reduce the interest figure by $120,000 which would add to the
net income picture.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
Income
$7,128,000.00
Expenses:
Drilling operations
3,660,000.00
General & administrative
144,000.00
Interest
260,300.00
$4,064,300.00
Income before depreciation and
Federal income taxes
$3,063,700.00
Depreciation
1,256,000.00
Net income before Federal taxes
1,807,700.00
Federal Income taxes at 52% (this
includes the "provision for taxes
payable")
950,196.00
Net Income
857,504.00
Add back items not requiring cash
depreciation
1,256,000.00
Net cash provided by oper.
$2,113,504.00
Net income per share
before conversion (767,498) = $1.12
after conversion (1,007,250) = $ .85
Cash throw-off per share
before conversion (767,498) = $2.75
after conversion (1,007,250) = $2.10
20sc
yr Co
November 28, 1956
Mr. G. H. Walker, Jr.
G. H. Walker and Co.
1 Wall Street
New York 5, New York
Dear Herbie:
By way of reminder, as soon as I get to New York I would
like to discuss with you your thoughts on calling the Zapata
debentures. If we plan to call them, we should plan to do
something about it fairly soon since we need 30 days notice
and the first interest payment is set up for January 20. If
you are talking to Houston while I am in Florida, perhaps you
can give any thoughts to them.
Looking forward to seeing you in New York.
Very truly yours,
George H. W. Bush
GHWB:bs
November 22, 1956
Mr. Ernest A. Eddy,
Jr.
off-thore
G. H. Walker & Co.
Broadway & Locust Streets
St. Louis 1, Missouri
Dear Mr. Eddy:
We have a copy of Mr. Taylor's letter of November 20 to
you wherein he advises that the Houston Office supply of
prospectuses for the convertible debenture offering is de-
pleted. Our Midland Office supply of these prospectuses is
extremely low, but I am enclosing five copies with the hope
that these will be of some use to you. I am sorry we can-
not furnish you with the 30 copies which you requested.
Yours very truly,
(Mrs.) Juanita McBride
ZAPATA OFF-SHORE COMPANY
2218 CITY NATIONAL BANK BUILDING
HOUSTON 2, TEXAS
November 20, 1956
Mr. Ernest A. Eddy, Jr.
G. H. Walker & Co.
Broadway & Locusts Streets
St. Louis 1, Missouri
Dear Mr. Eddy:
With reference to your letter of November 16
in which you requested 30 copies of our prospectus on our
recent 5-1/2% Subordinated Convertible Debenture offering.
We regret we cannot furnish you with these
copies as our supply is depleted. By copy of this letter we
Juantay
are requesting the Midland office to forward you some copies
if they have some on hand.
do to
you any
Our records indicate that we mailed your
office 46 copies of this issue and four to you personally.
If
you find this number is not sufficient, please advise this office
as to the number required and we will set up our records accord-
ingly.
Very truly yours,
ZAPATA OFF-SHORE COMPANY
Hoyt 5. Laylar 4
Hoyt S. Taylor
Secretary
HST:bj
yet
off sher off shor
November 20, 1956
Mr. G. H. Walker, Jr.
G. H. Walker and Company
1 Wall Street
New York 5, New York
Dear Herbie:
I just talked to Dr. Weatherby inasmuch as I wanted to
check with him before using Amerada's name in our annual
report. He stated that of course it was our report and we
could do what we liked, but he preferred that we not mention
their name until we have actually signed the deals up. I
told him that of course we would honor this preference. He
was very nice, stating that he had just returned yesterday to
his office from his over-seas trip. I told him that word
had gotten out on the Amerada deal and he said that he had
heard that. He plans to start next week or the week after,
depending on Thanksgiving complications, to pursue the farm
outs. He was very nice and I feel that we are doing the
right thing in going along with his preference on not making
public our deal with Amerada. We are using essentially the
same language in the report, but deleting Amerada's name.
It was wonderful seeing you over the week end.. Paul
left yesterday evening and I think that he got all the
information available here.
Best regards to you.
Yours very truly,
George H. W. Bush
GHWB:bs
P. 0. Box 2216
Midland, Texas
September 25, 1956
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Following are the figures for the month of August:
Contract drilling income
$198,003
Drilling operations other than depreciation
192,482
Depreciation
67,717
General & administrative
12,020
Interest
18,379
Total
$290,600
Net income before provision for
Federal taxes
$ 92,596
Provision for taxes
32,440
Net loss for period
125,036
Earned surplus at beginning of period
203,719
Earned surplus August 31, 1956
78,682
These figures assume that we will collect nothing on our in-
surance, which I do not believe is the situation. Our insurance
claim could run as high as $100,000.00. Whether we get this much
or more depends on the position the underwriters will finally take.
For statement purposes we have put the disputed items into a
special account so that our published figures will show a deferred
charge or a suspense item totaling about $100,000.00. The income
shown is for the Nola's operations, but the operating expenses are
for the whole company, both the Nola and the Scorpion. I will fur-
nish you with the figures as we present them when they have been
finalized. These are just rough overall operating figures showing
no deferred charge for possible insurance claim.
Our rigs weathered the storm all right. Fortunately, we were
not in the main path of the storm. We took our men off at 1:30 A.M.
Sunday morning. We took everybody off the Scorpion but left 4 men
on the Nola. The Nola was hung on her bow anchor and pulled away
from the platform. Both rigs rode the storm out well and they are
Mr. Walker
September 25, 1956
now drilling ahead on both operations.
We have not gotten the final reports from the Louisiana coast.
One tender owned by Murminall Company tipped over. This was a
lousy tender to begin with, and everybody seemed to predict this
would happen. A couple of tenders washed up on the beach and many
of the submersible type platforms moved off location. I will let
you know more details when we get them.
Please keep these above figures confidential.
Best regards.
Yours very truly,
George H. W. Bush
GHWB:JMcB
TEXAS NATIONAL BANK
HOUSTON, TEXAS
RECEIVED SEP
ZAPATA
September 24, 1956
Mr. Reginald W. Pressprich, Jr.
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Mr. Pressprich:
At the request of Zapata Off-Shore Company,
we are enclosing a list of their customers who sub-
scribed through you to convertible debentures.
Very truly yours,
(Original) EDGAR S. COX, JR.
Trust Officer
ESC:1s
Enclosure
CC: Mr. George H. W. Bush, President
Zapata Off-Shore Company
P.O. Box 2216
Midland, Texas
COPY
ZAPATA
FF-SHORE
COMPANY
2218 CITY NATIONAL BANK BUILDING
HOUSTON 2, TEXAS
September 10, 1956
RECEIVE ZAPATA SEP 13 1956
Mr. G. H. Walker, Jr.
G. H. Walker Company
One Wall Street
New York 5, New York
Dear Herbie:
George just called and said you and
Art Palmer were going to be in Houston before going
on to the Midland meeting. That was pleasing news
and I am certainly looking forward to having you with
us again.
Reservations for you, Art, George
and Hugh are confirmed at the Shamrock Hilton for
arrival on October 13th. By copy of this letter I am
informing the others. If, by any chance, your plans
are changed please notify me and we will contact the
hotel.
Gsleeck
Best personal regards.
Fidelity Wayn( Omon Sincerely, Skin
Wayne H. Dean
MADE IN USA
WHD:bj
cc:
A. E. Palmer
Winthrop, Stimson,
Putnam & Roberts
40 Wall Street, New York
J. Hugh Liedtke
George Bush
2
Midland, Texas
September 24, 1956
Mr. G. H. Walker, Jr.
G. H. Walker and Company
1 Wall Street
New York 5, New York
Dear Herbie:
Bob Parrish spoke to me while I was in Houston. He
asked if I would object if he stopped in to see you about
his drilling syndicate. I told him that I would not
object. I also said that perhaps you would feel that
your relationship with Zapata might restrict the interest
that you might have in other such ventures.
I hope that he won't cause you any inconvenience, but
I couldn't flatly tell him not to see you. I don't know
anything about their deal, but I rather suspect that it
might not be too great. Please don't quote me on this
Maybe John Swan or somebody would like to talk to him.
Best regards.
Very truly yours,
George H. W. Bush
GHWB:bs
P. 0. Box 2216
Midland, Texas
September 17, 1956
Mr. Reginald W. Pressprich, Jr.
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Reg:
Thank you for your letter of September 11 addressed to W. M.
Brumley. We have requested, by copy of the attached letter, that the Texas
National Bank prepare a list for you. Let me know if we can be of further
service.
Yours very truly,
ZAPATA OFF-SHORE COMPANY
George H. W. Bush
President
GHWB:JMcB
Encl.
To m.Burd Mr.
G. H. walker & CO.
INVESTMENT BANKERS
ESTABLISHED 1900
ST. LOUIS
providence
MEMBER
NEW YORK STOCK EXCHANGE
RECEIVED
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL.HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
ZAPATA CABLE: "WALKERIAN"
September 11, 1956
Mr. William M. Brumley, Jr.
Zapata Off-Shore Company
Box 2216
Midland, Texas
Dear Mr. Brumley:
We appreciate receipt of your recent check representing
our commission for soliciting subscription agreements in connection
with your 5½ Subordinated Convertible Debenture financing.
If it is convenient, we would like to have you forward
us a list of the stockholders who subscribed for the $237,850.00 prin-
cipal amount of Debentures on which this commission was based, in
order that we may properly compensate our salesmen.
Please advise if you would rather have us request this
information from the Texas National Bank in Houston.
Very truly yours,
Reginald W. Pressprich, Jr.
Partner.
RWPJr:VC
ZAPATA FF-SHORE OMPANY
2218 CITY NATIONAL BANK BUILDING
HOUSTON 2, TEXAS
R
ECEIVE
September 10, 1956
SEP 13 1956
zapata
G. H. Walker Company wleeck
Mr. G. H. Walker, Jr.
One Wall Street
New York 5, New York
Fideliti Dear Herbie: George Orion just called and said you Skin and
Art Palmer were going to be in Houston before going
on to the Midland meeting. That was pleasing news
and I am certainly looking forward to having you with
us again.
Reservations for you, Art, George
and Hugh are confirmed at the Shamrock Hilton for
arrival on October 13th. By copy of this letter I am
informing the others. If, by any chance, your plans
are changed please notify me and we will contact the
hotel.
Best personal regards.
Sincerely,
Wayns Wayne H. Dean
WHD:bj
cc:
A. E. Palmer
Winthrop, Stimson,
Putnam & Roberts
40 Wall Street, New York
J. Hugh Liedtke
George Bush
Midland, Texas
P. 0. Box 2216
Midland, Texas
August 23, 1956
Mr. William H. Donaldson
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Bill:
Thanks for the suggestion. I have gotten off the three at-
tached letters to the New York papers. The Southwest edition of the
Wall Street Journal is now quoting both Petroleum and Off-Shore.
Best regards.
Yours very truly,
ZAPATA OFF-SHORE COMPANY
George H. W. Bush
President
GHWB:JMcB
Encls.
Cross reference
Public Plations
(umbur
G.H.WALKER &CO.
INVESTMENT BANKERS
ST. LOUIS
ESTABLISHED 1900
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL. HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
CABLE: "WALKERIAN"
August 21, 1956
Via Air Mail
Mr. G. H. W. Bush
Zapata Petroleum Company
Box 2216
Midland, Texas
Dear Poppy:
It seems that when it became time to get Zapata Petroleum listed in the
New York papers, you wrote a letter to the various Financial Editors
indicating local interest in the issue. It has now been suggested that
you write a similar letter proposing that they list Zapata Off-Shore,
using as a basis for your request the fact that the National Association
of Security Dealers has okayed Zapata Off-Shore for listing in the
WALL STREET JOURNAL and that the JOURNAL has been carrying the listing
since August 1.
Following are Financial Editors to whom you should address your letter:
NEW YORK HERALD TRIBUNE
Donald I. Rogers
NEW YORK WORLD TELEGRAM and SUN
Robert Denver
NEW YORK TIMES
John Forest
I am also enclosing a copy of a letter I wrote to John Hodges at the NASD,
which they required when we applied for listing in the WALL STREET JOURNAL.
For your interest
I am also enclosing a report by Van Alstyne, Noel & Company on Zapata
Off-Shore.
Thanks for the papers on Sea Service, Inc., received this morning.
Sincerely,
WHD:F
Bill D.
ENC.
July 26, 1956
Mr. John H. Hodges,
Secretary, Quotations Committee,
National Association of Securities Dealers, Inc.
25 Broad Street
New York, N.Y.
Dear Mr. Hodges:
Rather than wait for Merrill Lynch, Pierce, Fenner & Beane's area breakdown
of their 40 Zapata Off-Shore Company stockholders, we have checked our own
offices in St. Louis, New York, and Providence, and find that our holdings
in street name for customers are enough to bring the totals above your
minimum requirements. The breakdown is as follows:
Zapata Off-Shore Company reports 1,411 individual holders
Zapata Off-Shore Company reports
55 brokerage house holders
G.H. Walker & Co.
reports
75 individual holders (stock in
street name)
Total 1,541
In addition, the Zapata Off-Shore Company reports 185 holders in this area
(New York 141, Connecticut 34, and New Jersey 10). G.H. Walker & Co. has
65 area holders (New York 48, Connecticut 13, and New Jersey 4, and there
are 55 brokerage houses listed, all in the New York area, giving a total
of 305 in the tri-state area.
As I pointed out this morning, there are actually many more holders in this
area represented in the holdings of the 55 brokerage houses. This letter.
will serve as an interim indication that Zapata Off-Shore at least has ex-
ceeded the minimum requirements.
In accordance with our conversation, we understand that you will be. able to
grant approval on the basis of this information and that you will inform us
of any further breakdown you may need.
Sincerely yours,
William H. Donaldson
WHD:ro
Assistant to Mr. G.H. Walker, Jr.
Poppy:
NAS requires that you have over
1500 shareholders and over 300 in the
New you, New Jersey + Conn. area.
Bill
August 20, 1956
Mr. Reginald Pressprich
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Mr. Pressprich:
Billie Jackson in our Houston office
handed me your letter of August 16. We are getting
very low on these prospectuses but I am sending you
a few under separate cover. You will note that some
of these have the additional statements attached to
them and the remainder do not. I believe you have
some of the statements there, but if you do not,
please let us know and we will forward you some from
our Houston office.
Yours very truly,
George H. W. Bush
President
GHWB: JMcB
G. H. WALKER & CO.
INVESTMENT BANKERS
ESTABLISHED 1900
ST. LOUIS
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
one WALL STREET
TEL.HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
CABLE: "WALKERIAN"
August 16, 1956
Miss Johnson
Zapata Off-Shore Company
2218 First City National Bank Building
Houston 2, Texas
Dear Miss Johnson:
We would appreciate receiving from you 100
copies of the prospectus relating to $2,150,000 Zapata Off-Shore
Company 51% Subordinated Convertible Debentures due 1971 with
supplements to fill requests.
Thanking you kindly, I am
Very truly yours
G. H. WALKER & CO.
Reginald W. Presspruch, Jr.
Partner
RWPJr/az
P. 0. Box 2216
Midland, Texas
August 10, 1956
Mr. A. V. Morin
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear A1:
I believe that you or either Mr. Pressprich called our
Houston office regarding conversions. We are having some instructions
drawn up by our attorney for the use of J. P. Morgan & Co. Incorporated
and the Texas National Bank, and as soon as this has been prepared,
copies will be forwarded to you and the banks.
In the meantime, if there is a conversion that has to be
made I suggest that J. P. Morgan & Co. pass the debenture along to
Mr. Leslie Lewis at the Texas National Bank since they havemalready
handled two conversions.
Best regards.
Yours very truly,
ZAPATA OFF-SHORE COMPANY
George H. W. Bush
President
GHWB:JMcB
cc: Baine Kerr
P. 0. Box 2216
Midland, Texas
August 9, 1956
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Herbie:
Sam Winstead has elected to resign as a Director of
Zapata Off-Shore Company and we are going to accept his resignation.
Because of the support he has shown in both Petroleum
and Off-Shore, we are planning to elect Tom Devine a Director of
Zapata Off-Shore. The quorum provisions in our by-laws are such
that we need a four-man quorum and with Tom in this part of the
country it will greatly facilitate our Board meetings. I hope that
there will be at least one more vacancy created before the first of
the year and if I had my choice I would like to see Underwood resign
as well. Although I doubt that such a resignation will be voluntarily
forthcoming. Bob Parish should rightfully resign and if he does
shortly we will most certainly want to get your ideas as to whether
Mr. Stillman or somebody else should be approached. I hope that this
plan meets with your approval. I am sure it is in the best interest
of the Company and all of the stockholders and bondholders. Tom is
a very thorough going and hard working fellow and he has always given
lots of time to the Company just because he is interested. We have
not notified him of his election, but I will plan to hold a Directors
meeting at Houston before too long to formalize this action.
We are looking forward to Mother's visit tomorrow.
Hurriedly, but with best regards.
Yours very truly,
George H. W. Bush
GHWB: JMcB
P. 0. Box 2216
Midland, Texas
August 7, 1956
Mr. G. H. Walker, Jr.
One Wall Street
New York 5, New York
Dear Herbie:
I have mailed the mimeographed memorandum to a few people who have
been particularly interested in the Scorpion. These people include your
various offices and a few of our stockholders. The typed letter is a
proposed letter to stockholders. I have not had this printed as yet and
would like to have your reaution to it before proceeding. Could you give
me a collect call here in Midland after looking it over.
The market certainly has acted nicely and I do not want to do any-
thing to disturbe that. It might be that we should hold this letter in
readiness until we feel that it should be sent out.
Another thing I would like to get your opinion da is the problem
of short term paper for Zapata Off-Shore. We are looking into ways of
prepaying some of our debt so as to save on the 6% interest. Do you
think this would be better than buying treasury bills or some such liquid
investment? Milton Underwood called me today about some Fanny Maes so
I told him we wanted to think the problem through a little more before
doing anything and be sure exactly what our cash requirements are going
to be.
Hurriedly but with love to all the family.
Yours very truly,
George H. W. Bush
GHWB: JMcB
July 24, 1956
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Herbie:
I am attaching the Zapata Off-Shore Company check
for $10,000 for the agency fee on the recent financing.
Hugh and I have both stated how reasonable we feel this
is especially in light of the tremendous job you did
for us up there.
Would you please thank Bill Donaldson, Al Morin
and all the others who assisted you in making this
thing successful.
Very truly yours,
George H. W. Bush
GHWB: JMcB
Attachment
Withdrawal/Redaction Sheet
(George Bush Library)
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
CLASS.
AND TYPE
06. Letter
From G.H. Walker, Jr. to George Bush
7/18/56
C
RE: Financial information (2 pp.)
COLLECTION
George Bush Personal Papers
Zapata Oil File
Business Correspondence Files
FILE LOCATION
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-
OA/ID Number
1959]
Date Closed
10/26/99
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
F-1 National security classified Information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
F-2 Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
F-3 Release would violate a Federal statute [(b)(3) of the FOIA)
financial information [(a)(4) of the PRA]
F-4 Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President and
Information [(b)(4) of the FOIA]
his advisors, or between such advisors [a)(5) of the PRA]
F-6 Release would constitute a clearly unwarranted invasion of personal
P-6 Release would constitute a clearly unwarranted Invasion of personal
privacy [(b)(6) of the FOIA]
privacy [(a)(6) of the PRAJ
F-7 Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
F-9 Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
July 30, 1956
Dear Horbie,
I am attaching a pro-forma balance sheet on Off-Shore
dated Jan. 31, 1957. Some of these figures we want to keep
confidential but I did want you to see them.
The bank called and they have sta ed that they are
95% sure of making the deal but they want plenty of time to
commit. Kline McGee is going on vacation and trey want more
time when he gets back. We mus let LeTourneau know very
soon whether we want him to carry any paper. Even though
we have no firm bank commitment, we will n ify LeTourneau
that we will go the cash route with him. This will give us
an $65,000 cash savings on the new ar e: We are sure we can
work the deal out even if Texas National does not come through.
We are talking to them about a $1.7 million loan. To get our
cash discount from LeTourneau we only need aboutta $1 million
loan, however we want to pay Oil Well Supply in cash if we can.
The Scorbion is moving again. They started yester-
day and were about to raise up when one leg broke through
a hard sand shelf. It went in 32' before it got a braring.
They are now jetting trying to break through the shelf with
the other two legs. e were just lucky the shelf didn to give
with the barge raised. Dean thought it might take another
12. hours to jet the other two legs through
Thanks for handling the stock deal so ickly
and so well.
Off to Da las tomorrow.
Take a plunge and a good martini for me.
Love to all,
Withdrawal/Redaction Sheet
(George Bush Library)
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
CLASS.
AND TYPE
07. Letter
From Hugh Liedtke to G.H. Walker, Jr.
5/18/56
C
RE: Financial information (1 pp.)
COLLECTION
George Bush Personal Papers
Zapata Oil File
Business Correspondence Files
FILE LOCATION
Correspondence with G.H. Walker and Co. (to Jan. 1959) [1955-
OA/ID Number
1959]
Date Closed
10/26/99
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
F-1 National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
F-2 Release would disclose Internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
F-3 Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
F-4 Release would disclose trade secrets or confidential'or financial
P-5 Release would disclose confidential advise between the President and
information [(b)(4) of the FOIA]
his advisors, or between such advisors [a)(5) of the PRA]
F-6 Release would constitute a clearly unwarranted invasion of personal
P-6 Release would constitute a clearly unwarranted invasion of personal
privacy [(b)(6) of the FOIA]
privacy [(a)(6) of the PRAJ
F-7 Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of gift.
F-8 Release would disclose information concerning the regulation of
financial institutions [(b)(8) of the FOIA]
F-9 Release would disclose geological or geophysical information
concerning wells [(b)(9) of the FOIA]
P. 0. Box 2216
Midland, Texas
February 6, 1956
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
1 Wall Street
New York 5, New York
Dear Herbie:
I have sent the attached letter to Falgout today. As soon ns
you get the figures perhaps we should talk more about setting up a
meeting with Falgout. It was too bad he did not have them while you
were in Florida, but he could not get Ernst & Ernst to speed them up.
I have a good deal of confidence in Tillman. He has told me that if
it is not practical to set the thing up as a large boat company, he
would have from time to time individual boat deals which would require
financing and which he could own on a parnership basis. Dean and I
feel there is a definite place in this growing industry for a large
boat company, and Falgout, with his experience and integrity, seems
to us to be a good man to head it up. He is not too savvy on high
finance or anything like that, but he knows his own business and has
been very successful.
We had an encouraging talk with Continental on the tender and
were very pleased with our reaction with the COLLIERS man. He main-
tains he is going to feature Zapata in the COLLIERS article.
We had two dry holes here in West Texas over the weekend; one
of these was a disappointing one in Martin County. This was a deep well
in which Louis had an interest. It ran high but was not high enough to
make a well. Of course, we cannot expect them all to be wells, but
this one could have been very big had it hit. We have set pipe on a
couple of other wells which we should know more about in a week or so.
I will be talking to you shortly. Best regards.
Yours very truly,
SKIN
George H. W. Bush
GHWB:JMcB
TX Losc
Midland, Texas
October 17, 1955
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
I am attaching the N.A.S.D. forms as re-
quested by you in your letter of October 10. With the stock
held in the names of the brokers we may reach the 1500 share mark,
but the 300 from the district of New York, New Jersey and Con-
necticut might be difficult to achieve.
Bar and I were in Houston Friday and Satur-
day for the opening of the Texas National Bank. We went down
to Galveston and went out on one of our Falgout boats. The
Nola is on location and is practically rigged up. LeTourneau
is supposed to launch the platform either today or yesterday,
so I will probably be in Vicksburgh most of this week.
Still no word on the Jameson.
Best regards,
Yours very truly,
George H. W. Bush
GHWB:JMc
Encl.
To
National Association of Securities Dealers, Inc.
District No. 13
25 Broad Street, New York 4, New York.
Date October 15, 1955
Application for market-release to the Press through N.A.S.D. with respect to
ZAPATA OFF-SHORE COMPANY - common stock
(correct title of security issue)
Authorized
760,000
Outstanding 722,000
1.
What is the present market quotation?
2.
Has this security been registered with the S.E.C.?
Yes
3.
Is this issue listed or traded on any Securities Exchange?
No.
Where?
4.
Are there at present any plans to list or obtain trading privileges on any
Securities Exchange?
No
No
Where?
5.
List amount held by each of the ten highest holders of record See Exhibit
See Exhibit A" attached
6.
Do you know of any option outstanding and if so, give details?
2500 share option in favor of Boyt S. Taylor, Chief Engineer
7.
Do you know of any plans for a "secondary" distribution or additional
offerings and if so, give details?
There are no plans for either
either
8.
Has this security been rejected No for registration or distribution by any
Federal or State authority?
Where?
A Hachment ")
9.
Number of stockholders 1344 exclusive of brokers (see attachment)
10. Stockholders-distribution. Please report on form attached.
INFORMATION REGARDING THE COMPANY
A.
Correct name
Zapata Off-Shore Company ompany
B.
Address of main office City National Bank Building, Houston, Texas ston, Texas.
C. Is it the custom of this company to make public announcements as to
dividend declarations at least one week prior to the stock of record
date; if not, what will be the company's policy in this respect? (See
"Minimum Requirement E"). Have not paid ividends as yet. By
policy will comply with minimum requirements "R"
D.
What is the policy of this company with respect to the publication of its
financial statements? (See "Minimum Requirement F").
Financial statements will be available for publication at least
once least a year.
your
(Signature)
MINIMUM REQUIREMENTS
No security will be accepted which does not meet the following minimum
requirements, unless it should appear to be in the public interest to make
exception:
A.
There shall be outstanding, satisfactorily distributed, in
the hands of the public securities of the issue of a market
value of $500,000. for stocks, $2,000,000. for bonds.
B.
There shall be a sufficient number of stockholders in this
district to indicate relative public interest.
C.
There shall be sufficient dealer activity indicated to assure
a realistic market.
D.
The market price shall be not less than $3.00 per share.
E.
Dividend Declaration Policy must include publication of
declaration at least one week prior to Stock of Record date.
F.
It shall be the policy of the company to make available to
the public, through the Press or some financial service,
their financial statements at least once a year.
Date
October 15,
, 19 55
NATIONAL ASSOCIATION OF SECURITIES DEALERS. INC.
25 Broad Street
New York 4, N. Y.
Gentlemen:
Re:
ZAPATA OFF-SHORE COMPANY - Common stock
The number of stockholders in each state is as follows:
State
State
Totals
Totals
Alabama
up
Nebraska
2
Arizona
2
Nevada
Arkansas
1
New Hampshire
California
G
New Jersey
3
Colorado
17
New Mexico
1
Connecticut
13
New York
52
Delaware
North Carolina
1
District of Columbia
North Dakota
Florida
4
Ohio
1
Georgia
4
Oklahoma
64
Idaho
Oregon
Illinois
20
Pennsylvania
1
Indiana
#
Rhode Island
Iowa
South Carolina
Kansas
4
South Dakota
Kentucky
Tennessee
25
Louisiana
51
Texas
907
Maine
Utah
3
Maryland
Vermont
Massachusetts
1
Virginia
/
2
Michigan
3
Washington
Minnesota
3
West Virginia
Mississippi
6
Wisconsin
74
Missouri
64
Wyoming
1
Montana
Canada
2
British Honduras
1
The total number of stockholders is
1344
Puerto Rico
1
Signed
G. H. WALKER & CO.
INVESTMENT BANKERS
ESTABLISHED 1900
ST. LOUIS
PROVIDENCE
MEMBER
NEW YORK STOCK EXCHANGE
HARTFORD
BRIDGEPORT
ONE WALL STREET
TEL. HA 2-4000
WHITE PLAINS
NEW YORK 5, N.Y.
CABLE: "WALKERIAN"
October 10, 1955
Mr. George H. W. Bush
Zapata Off-Shore Company
2218 City National Bank Building
Houston 2, Texas
Dear Pop:
Enclosed herewith are forms that must be filled out if we
are to get a regular quotation for Zapata Off-Shore through the N.A.S.D.
If we can accomplish this it will mean that Zapata will be quoted in
the papers every morning. That would be THE NEW YORK TIMES, NEW YORK
TRIBUNE and THE WALL STREET JOURNAL. Next to listing, this is the best
that can be done and I know that people appreciate being able to look
in the paper and see what their stock is selling at. I know the people
at the N.A.S.D. here very well as I served on one of their principal
committees for several years. Consequently I feel that I can get as
much cooperation in getting this through as anybody but I will need the
enclosed questionaire to be filled out and returned to me. I think you
will be able to furnish detailed answers for all but No. 1, which I
will do when you return it here.
Their basic requirements are that we have to have 1500 individ-
ual shareholders and 300 in the district of New York, New Jersey and
Connecticut. Probably a fair amount of the stock will show up in the
names of brokers and I will have to get the various New York firms to
break that down into the number of customers so that we can qualify
under the 300 rule.
Will you return this data to me as soon as possible.
Enjoyed your letter on the Off-Shore company and the pictures
of the mobile drilling platform. This is very good publicity and I am
glad you are continuing to get something out periodically.
With all best to you,
Devotedly,
Nerbie
G. H. Walker, Jr.
GHWjr:ms
Encl.
Draft
Minutes of a special mee ro of the Board of Directors of Zapata Off-Shore Company
held at 3:00 p.m. o in the offices of the Company at Houston, Texas, Thursday, Oct. 6, '55.
Directors present were George H. W. Bush, Sam G. Winstead, Milton R. Underwood, and
Wayne H. Dean. Directors absent:J Hugh Liedtke and Robert U. Parish. Mr. Bush served
as Chairman and Secretary of the meeting. Mr. Bush stated that the purpose of the
meeting was to ratify certain agreements which the Company had entered into. He pointed
out that these agreements, for the most part, had been authorized by the Directors at
the last meeting.
Chairman presented to the meeting an option agreement between Zapata
Petroleum Corporation and Zapata Off-Shore Company. He stated that htis agreement,
in affect, gave Zapata Petroleum Corporation certain preferential rights for the purchasing
of the Nola I, however, the main purpose for this agreement was to extend to Zapata Off-
Shore Company so that it could borrow money from the Texas National Bank discredit
to Zapata Petroleum Corporation. Mr. Winstead noted that in event of default before
Zapata Petroleum Corporation could execute its rights to purchase the Nola I and assume
the Zapata Off-Shore Company debt, Zapata Off-Shore Company had a period of thirty days
in which it could try to refinance or sell the Nola I on a more profitable basis. Upon
motion duly made and seconded them directors 1 approved the execution and
delivery of the option
agreement with Zapata Petroleum Corporation, dated August 8, 1955 was unanimously
ratified.
Mr. Bush presented to the meeting a loan agreement with the Texas National
Bank of Houston, dated August 18, 1955. It was pointed out that the loan covered by this
agreement was in the amount of $575, 000, payable in 24 months. Upon motion made by
Mr. Underwood and seconded by Mr. Dean, the Directors unaniously ratified the execution
of the loan agreement dated August 18, 1955 with the Texas National Bank of Houston.
Minutes - Page 2
The Chairman stated that it would be necessary to authorize the borrowing
of the $575, 000 pursuant to the loan agreement and further to authorize the execution of
note referred to in the loan agreement. Upon motion made by Mr. Winstead and
seconded by Mr. Underwood, the Directors unanimously authorized the borrowing of the
$575, 000 pursuant to the loan agreement and execution of the note referred to therein.
Mr. Bush stated that the bank required a Ship Mortgage securing the note.
He presented a form of Ship Mortgage to the Directors and upon motion made by
Mr. Underwood and seconded by Mr. Winstead, the Directors unanimously authorized
the execution of the Ship Mortgage securing the bank note.
Mr. Bush pointed out that the loan agreement called for assignments of the
option agreement ratified as the first order of business at this meeting and the assignment
of the Standard Contract. Upon motion made by Mr. Underwood and seconded by
Mr. Dean, the Directors authorized the collateral assignments of the option agreement
and of the Standard contract as contemplated by the loan agreement.
Chairman stated that the officers should have a general authority conferred
on them by the Directors to take any other action which might be necessary to close the
Texas National Bank deal. The following motion, resolutions made by Mr. Winstead and
seconded by Mr. Underwood, was unanimously adopted.
RESOLVED: That the Officers of the Company are hereby authorized to take
any and all other action and to execute and sign and deliver any other
documents that may be necessary or appropriate in connection with the
loan agreement with the Texas National Bank of Houston.
Mr. Dean reported on the progress of the Nola I, the Company's YF Tender
which had been converted at Hunt Tool Company Marine Yard at Harvey, Louisiana. He
stated that the Nola was presently at Galveston about ready to go on location for the
Minutes- Page three
Standard of Texas. Mr. Bush suggested that it would be wise to authorize the Officers
to accept the conversion work on the Nola at such time the Officers determine that the
work had been satisfactorily completed. Upon motion made by Mr. Underwood and
seconded by Mr. Winstead, it was uninimously resolved that the Officers of the Company
are hereby authorized to accept the conversion work on the Nola I at such time that the
Officers determine that the work has been satisfactorily completed.
Chairman presented to the meeting a note form to be executed by the Company
in favor of the Hunt Tool Company and a second Maritime Mortgage Form also to be
delivered to Hunt. Upon motion made by Mr. Winstead and seconded by Mr. Underwood,
the Directors unanimously approved the form of the Hunt Tool Company note and a second
Maritime Mortgage securing it and authorized the Officers to execute and deliver the note
and the mortgage when they have accepted the conversion work.
Mr. Bush presented some financial reports to the meeting, showing the
overall expenditures of the Company. He pointed out that the Company's working capital,
position, though less tan originally estimated, was in sound shape.
Mr. Bush then stated that in order to conduct the affairs of this Company
it was, in his opinion, advisable to have an assistant treasurer of the Company. Upon
motion duly made and seconded, Mr. J. A. Rudolph was unanimously elected assistant
treasurer to serve until the next regular election of officers.
There being no further business to come before the meeting it was moved
that the meeting stand adjourned.
LOSC
ml?
September 12, 1955
Mr. G. H. Walker, Jr.
G. H. Walker & Company
One Wall Street
New York, New York
Dear Herbie:
Thanks for your letter of September 8. It
was on my desk when I returned this morning from Houston.
Hugh and I are inclined to agree with your
reaction namely that we should look very carefully at this deal be-
fore going into it. I understand that Hugh has written you in some
detail about our thinking on this point.
While in Houston I did some inquiring about
the Texas Gulf well but did not come up with anything too authorita-
tive. Mike Halbouty, a prominent Houston geologist, told me that he
had seen something in the paper about this well. Said they were suppose
to have some so neet feet of pay out of four sands which occurred fairly
close together. I have a few feelers out and if I come up with anything
authentic I will bt you know.
I was in New Orleans on last Thursday and the
YF tender is just about ready to go. In fact, they will start loading
this week and the tender leaves port on the morning of the 16th of
September. We will be on the payroll with Standard starting that day.
A couple of our boats are already on Standard's payroll.
No definite news yet on the LeTourneau barge
contract but will keep you posted.
Best regards,
GHWB/cd
205C
September 7, 1955
Mr. G. H. Walker, Jr.
G. H. Walker & Company
One Wall Street
New York, New York
Dear Herbie:
First of all let me thank you for the many
things that you did for Barbara, the kids and myself during the month
of August. Both Bar and I had an absolutely perfect vacation and we
can think of no way in which it might have been improved. I have
never enjoyed myself more and I returned here to Midland feeling like
a million dollars. You and Mary were wonderful to us with all the
picnics, the golf, the laughs, etc. I don't even dare hope that we
will ever have another vacation like this again.
I was home one day and then I went to Houston.
Thursday, the first, we went to Vicksburg and had a very inspiring
trip. The deck of the platform was 80 feet above the ground and while
we were there they raised the platform another five feet. The whole
thing was terrific. The platform is huge and it moved beautifully -
just like an elevator only actually it was smoother. The whole thing
was moved by three simple little levers all controlled by one man.
They have tested the platform with 71 million pounds and it moved very
nicely. The anticipated schedule is as follows: LeTourneau will
complete their work in three weeks. We will then require about six
weeks to finish our work. This means that we will have a delivery
working date of around November 15 or December 1.
We had two of Shell's top people out of New
Orleans at the platform Thursday and they were very enthusiastic about
it. They have asked that I come to New Orleans with Wayne Dean the
end of this week to discuss contract. Last Friday we had a meeting in
Houston with the top Gulf people. Mr. Brockett, the vice president,
kind of presided but Newie Simpson, chief of production, and three other
top officials were on hand. They have asked that we submit a proposal
based on a footage incentive deal. It is too early to say when we will
work out a contract, but I am confident that we will be ablie to negoti-
ate a very favorable one for Zapata Off-Shore. Of course we can't say
as yet that the LeTourneau platform is an absolute cinch, but having
been to Vicksburg and seeing it 85 feet above the ground I can only say
that it is most impressive and everyone who has seen it thinks it will
work.
Mr. G.M. Walker Jr.
-2-
9-7-55
The YF tender 18 making good progress and
we hope to have it leave Harvey, Louisiana on the 10th of September.
That means that it will be on the Standard payroll then. Friday,
after returning from Vicksburg, I went over to Galveston to see our
shore base. This is a small dog house type of arrangement right on
the water front where Standard Oil Company of Texas has a wharf. We
signed our boat contract Friday for the use of the crew boats and
tugs. It will be good to get this tender working so that we will at
lastahave some income.
Our house and dog and everything here in
Midland was in good shape when we returned. Georgie starts to
school this week so once again all will be normal. We will miss the
wonderful picnics, the marvelous cold water and the lobster dinners.
We certainly have many happy memories to carry through the year.
Many thanks again to you and Mary and all the Walkers for giving us
such a marvelous time.
Devotedly,
GREENER
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June 16, 1955
Mr. G. H. Walker, Jr.
G. H. Walker & Company
One Wall Street
New York, New York
Dear Herbie:
Hugh and I returned from St. Louis yesterday.
We had a very nice visit there at G. H. Walker & Company. We were in
meetings all Monday afternoon and all of Tuesday so that we did not
have a chance to do anything but meet. As always everyone was wonder-
ful to us. I saw Cliff and Mr. Bixby very briefly and saw a good bit
of George Newton since he set up and sat in on two meetings that we
had. His Syrian deal, although a long shot, is well worth some prelim-
inary work. It could be a tremendous thing and it seems to me it is
one we can check very easily. He had three real live Arabs there in
the office which made things mighty interesting. We made the lead
Arab, Mr. Menhall, a general proposition which he might or might not
accept. All it really consists of is to give us some time to do some
checking on the deal. At first we did not think we would really be
interested but after setting in on the very first meeting, the tremen-
dous possibilities of the deal unfolded and we can now 800 Zapata of
Syria producing several 8,000 per day wells.
On returning I found an interesting letter
from Jim Gammell. This proposed sale brings out many complicated
problems regarding our corporate structure. (Incidentally, our meet-
ing in St. Louis with Climax was a successful one and they are still
very interested in the property. Our report will be finished next
week and at that time they will know a lot more about what they want
to do). I have given a lot of thought to the problem on this end. If
we make this sale I would like, if possible, to get Zapata and Walker-
Bush back together again. I know that Hugh would like this and he
feels that the Tulsa people who may have been reluctant to give value
to the Walker-Bush assets now would be willing to make some kind of a
deal. Eric and I talked some about this and from Gammell's recent
letter I know that he too would like to see an amalgamation, provided,
of course, that itucould be worked out on a fair basis for all. It
seems to me that we will have some negotiating with Climax to do before
too long. At this time I would like to explore your ideas as to what
is the best way to go. Under the current set up we have so darn many
companies that, in my opinion, anything we could do to simplify the
corporate structure would be an improvement. I think many things have
Mr. G. H. Walker, Jr.
-2-
6-16-55
changed since our discussions last year. For one thing, I think that
Hugh and I have a much better understanding of each other and I think
we are both convinced that together, working towards the same goal,
we could do a creditable job. I will try to give some thought to a
possible solution 80 that we won't have to start from scratch in any
discussion.
Our Crockett County well is a dry hole. The
Lowry well which we fraced is pumping 70 barrels a day. We have our
fingers crossed hoping it will hold up to this rate. Even if it falls
off to 20 or 25 barrels this job will have been well worth while. The
L & K #2 is shutin to let the pressure build up. This 1s not costing
us anything and the engineer hopes that by leaving it shut in for a few
days the well may flow.
We have had a favorable response so far from
our last Off-Shore release. I had another good talk with the Gulf in
Houston, last Friday, and we hope to get some of their people to Vicks-
burg next week. Hoyt Taylor reports optimistically from Vicksburg on
the barge's progress.
I am sorry that I am going to miss the O'Brien-
Mead weeding but things have been so hectic here between our traveling
to Dallas and Houston so much that I just cannot possibly get away.
Best regards to all.
Very truly yours,
George H. W. Bush
GHWB/cd
May 25, 1955
ZJSA?
Mr. G. H. Walker, Jr.
G. H. Walker & Co.
One Wall Street
New York 5, New York
Dear Herbie:
Attached are two copies of the press release on the
Standard of Texas deal.
As soon as we have received word from the American
Bureau of Shipping and have signed the Standard contract, I will
send you a wire.
Please do not let this information get out until that
time. Many thanks.
Yours very truly,
George H. W. Bush
GHWB: JMc
Encl.
Halker
January 7, 1957
Mr. G. H. Walker, Jr.
G. H. Walker & Company
1 Wall Street
New York 5, New York
Dear Herbie:
Regarding the deal LeTourneau has reportedly made with
Deepwater, it is most important that any action we might take
to remedy LeTourneau's failure to notify us not be publicly
aired. There is a very serious question involved here and we
do not want to expose ourselves to any legal action on the
part of Deepwater Exploration Company.
Our lawyers are charting our course of action, but they
asked us to notify all our company people and all others
familiar with our feelings in this matter, not to mention it
at all. I'll keep you advised.
I am off again today--this time to Dallas, Houston,
New Orleans, Baton Rouge and Vicksburgh.
Regards to all,
Yours very truly,
George H. W. Bush
GHWB:bs