For more historical figures from Lehman Brothers on drilling permits, see this article online at OilandGasInvestor.com.

In an improvisational question-and-answer session at Oil and Gas Investor’s Energy Capital—The Workshop: Starting and Building an E&P Company, potential start-up executives got advice on business plans, the pitfalls of legal issues and more.

“For us, assets were the key. We went to areas we knew,” said Robert Cavnar, chief executive of Milagro Exploration LP, a privately owned producer based in Houston. “For us, it was the technology.”

Graham Whaling, chief executive of Houston-based energy investment banking firm Parkman Whaling LLC, and a three-time co-founder of Laredo Energy, said, “You need a team that is focused on one trend. For us, the key was technology and having an experienced team.”

Cavnar added, “You need a board that will run a board meeting like a board meeting and not a committee meeting. A professional board can really make all the difference.”

Panel moderator Alan Smith, managing director of Quantum Energy Partners and founder of Chalker Energy I, said, “When you’re in the grass and the board’s at 35,000 feet, they get to see things a little differently than you do. Have a board that will give you strong direction.”

When asked about the start-up E&P paperwork, Cavnar said, “Have your own lawyer. Have an advocate for yourself who will protect your rights in a deal.”

Whaling said there is still capital available for start-ups.

“It’s out there,” Whaling said. “You just have to go out and find it.”