Kyle Stallings entered the oil and gas industry in 1979 as a landman with Hunt Energy and later with Enserch Exploration before going independent in 1981. In 1986 the price of oil collapsed and the posted price of West Texas Intermediate Crude bottomed at $9 per barrel. Exploration and production activity reached an all time low. With little capital, no experience but several encouraging mentors he began buying and selling minerals. During this time he was fortunate to meet and become friends with Jon Morgan.
In 1987 Kyle and Jon co-founded PBAF 87 and then PBAF 88 in 1988. Largely due to Jon’s vision and ability the young partners became pioneers in computerized mineral solicitations. In 1990 the two separated their mineral acquisition efforts but continued their association in other businesses including Turtle Hill Golf Course,
Lubbock Cotton Kings hockey franchise, Petro-Title, Midland Map Company
and commercial real estate.
In 1990 Kyle reincorporated as a sole proprietorship called Permian Basin Acquisition Fund (PBAF) that operated until 2013. In recognition of his depth of character and competence, Buddy Gieb, who had joined PBAF 88 in 1989 as the company’s first key employee, was offered a partnership in this new venture. PBAF acquired minerals in Texas, New Mexico, Oklahoma, Wyoming, Colorado, Montana and North Dakota. The acquisition strategy often involved joint ventures with industry partners who were personal friends. In order to manage debt and recapitalize, a portion of the minerals were marketed to outside parties. These parties were typically family owned oil companies. The business was largely founded on relationships.