Crimson's Latest

I listened to the Crimson conference call from Friday and they had some interesting things to say. No supporting material but I will try to remember the highlights, They said that the Kardell 1H is still flowing at 3.5-4 mmcfd and has produced in the 1.3-1.4 BCF range. They think they have figured out the frac strategy that will eliminate the extreme decline rate that they experienced on that well. They plan to drill 7 Haynesville or mid-bossier wells not including the grizzly unit that they formed S of San /Augustine where they will have a 45% working interest and have a permit already filed. They said they plan to have a rig on that in the next two weeks but are seeing delays due to the long queue for fracking services etc. They will then partner as a non operator in what they call the "tiger prospect" which is East of the Kardell and San Augustine. They see the Haynesville Shale, Mid-Bossier,James Lime, and Knowles Lime as being prospective on their acreage. This area includes Fairway Farms which has a permit filed from Eagle. They said they may partner on two wells there this year with a 25-35% interest. The partners on the others in the "tiger" are "a private company out of Dallas" (is this Eagle?) and Devon." They then plan to move SE of there to the "Tebow Prospect" (SP?). They will again "partner with the private company out of Dallas and possibly EOG which is in the area as well". They feel they have Mid-Bossier, James Lime, and are hopeful for the Haynesville in this area of their acreage but so few holes have been drilled they don't have a lot of data points to use yet. I am assuming these two prospect areas are the same distinctly defined areas that they had on their latest maps. Also discussed was the change in field rules discussing the increase in unit size to 880 acres with the longer laterals. They plan to implement this to get better returns as well as to hold more acreage. They see an EUR of 5.5 BCF on the Kardell after its issues but still feel very confident about 6.5 BCF EUR going forward now that they understand the optimal fracking method for this areas pressure, formation thickness, etc. Sounds like they need cash flow badly but are waiting for others to move forward with drilling so they can participate. They stated they may need as many as 24-25 wells drilled by early 2012 to hold the primary acreage they want to hold. This is based on a 700 acre unit size so the change in rules might bring that down some and save some cost to hold acreage. That is what I can remember and couldn't find any transcripts that didn't cost $ so there ya go.

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Replies to This Discussion

Permalink Reply by Mike on March 21, 2010 at 8:32
Thanks for putting this together. I am starting to realize when they talk about a testing in a play, they really are.
Permalink Reply by DR on March 21, 2010 at 8:48
Good summary. One additional point they made on the call was that they should have choked back the Kardell well. That is what other operators have been saying all along. I guess you can't have it all. Either go for a record or go for the higher EUR. The record well sure helped them get known and sell stock. Looks like the one poster here has been correct in stating that the well was damaged because of the high flow rate. Maybe he can say more now with the information having been made public.
Permalink Reply by Cheerleader on March 21, 2010 at 9:17
Alongview,
Thanks for the update. Is the "Tiger Prospect" east of the Kardell and east of San Augustne town or east of San Augustine county? Are you stating the "Tiger Prospect" is in San Augstine County??? Great name...Tiger!! Thanks
Permalink Reply by ALongview on March 21, 2010 at 9:23
CL, East of Kardell and the town. Sounds as if the tebow? prospect spills over into western Sabine county. 2 wells planned for this prospect in 2010.
Permalink Reply by jffree1 on March 21, 2010 at 9:28
ALongview, I believe the "Tebo" prospect is going to be in north Sabine County, most likely. The Tebo Cemetery (where the town used to be, I believe) is just north of Hwy. 103 and east off of FM 1 above Rosevine. Tebo Creek stretches from eastern San Augustine County across Sabine County to Palo Gaucho Bayou southwest of Milam.
Permalink Reply by ALongview on March 21, 2010 at 9:41
Jffree1, that has to be it then......and I say bring em on over.
Permalink Reply by Cheerleader on March 21, 2010 at 10:32
I say MOTHERLOAD!!!!!!!!!!!
Permalink Reply by jRose on October 13, 2011 at 6:09

Hello,

Do you or anyone know about what going on in the Tebo area? You said there was 2 wells planned back in 2010 , what are the names? Any information you could send me  I would appreciate it.  Do you think anymore action in this area?

Permalink Reply by jffree1 on October 13, 2011 at 6:14
jRose, they don't have any wells planned for the rest of this year.  Maybe they will tell us, at year end, what they have planned for next year.
Permalink Reply by 5thGenTexan on March 21, 2010 at 12:59
Tebow Ranch. Owned by Haleys, just like Fairway Farms. Drill or lose it.......

Go Haleys!
Permalink Reply by gene on March 21, 2010 at 20:26
haleys only own half of the minerals the cobbs own the rest
Permalink Reply by gene on March 22, 2010 at 3:35
correction on where the town used.the town of tebo was never located at the cemetery. this town was located about 1/4 mile east of the cemetery on the old hemphill -san augustine dirt road in sabine county. the town consist of a school a post office, cotton gin a saloon, and families. it was also a intersection for the road to bronson

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