Insider Trading

There comes a time in the life of every independent oilman when he decides to leave his wells behind. For Harry C. Johnson, that time was last summer. Having lost out on bids for two energy companies, the chairman and president of Red Eagle Resources Corp. decided his outfit was too small to compete against better-heeled rivals. So on Aug. 30, Johnson announced that he would sell the Oklahoma City oil and gas producer he had founded in 1977 to competitor Lomak Petroleum Inc. for $38.3 million. "It was a shock to everyone who knew me that I parted with my baby," says the laconic 62-year-old former roughneck.

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