Are we finally seeing the Austin Chalk activity we have been waiting for?
Slide 7 of this presentation says 300,000 acres have already been leased
Craig, that is not Pointe Coupee turf. EOG has tied up most if not all north Pointe Coupee. The map shown looks more like it is in Avoyelles Parish. Fracking is not a big issue with Austin Chalk as it said to be naturally fracked, that is has lots of small fractures. The big issue with Austin Chalk in Louisiana is that it is soft and subject to being crushed in time. The problem is keeping the well open and flowing. I do not think any E&P has successfully figured out how to keep the wells flowing especially in the Austin Chalk area. Tuscaloosa gas is a different issue, it is deep and well below the Austin Chalk strata. Thus it is hard to drill (make that expensive) and the price of gas is depressed at the moment. We are pretty sure the gas is there but not worth the effort to get to it. I doubt that EOG will drill until the price of crude remains steady at or above $80 a barrel. But we are leased all along the Mississippi River from Morganza to New Roads to EOG.
I sure hope so Craig. At this point I have not been able to get much information about the play - period. Everyone seems to be hush hush about which companies are leasing, the amount per acre and where the leasing is going on right now. Great articles.
My experience has shown me to sit tight in situations like this unless you need the bonus money. This thing could go either way. My best advice is pay attention to location. If you are in EOG's area of interest wait. If you are where the flippers are leasing, take their money it could go either way.
I am in Rapides parish a little north of the broadway well. I am going to sit tight for awhile and keep my fingers crossed that all the companies do well. It looks like a new company has taken over the Broadway well. I find that very interesting.
I'll second your enthusiasm, Craig. This AC story has evolved from "barbershop shop talk" to substantial revelations directly from legitimate players. Although it's early in the New Year, I thought we'd see a few O&G peeps lined up at the permit office with their 2018 budgets in hand. Quiet so far...
Central EV might be a little deep for the AC, but don't give up hope yet.
Thanks Jay. we have been leased in the past and even been drilled but it was a wilcox play.. i know the Ac/TMS are 18k below from all the maps i have reviewed. maybe a 3D shoot in the future would reveal something worth exploring...thx for response.. shawn
Actually the Austin Chalk overlays Tucaloosa Marine Shale. That is pretty deep for oil but not for gas.
Thanks,,, still learning. Appreciate the info provided. The shoot they are talking about around Bunkie and Lebeau is due east of us about 20 miles. seems as though the AC/TMS would be just as deep there. hope that 3D shoot goes well and they pursue the 17-18k depth..