Replies to This Discussion

Permalink Reply by ken hatcher on May 30, 2010 at 4:22

What is their logic? The Patterson 543 (OLYMPIA) is just down the road, is it not drilling deeper?

Permalink Reply by Skip Peel - Mineral Consultant on May 30, 2010 at 6:27

Devon doesn't publicize their development intentions as some other energy companies do. They are tight lipped traditionalists. And their Haynesville development to date has been in Texas.

Permalink Reply by Two Dogs, Pirate on May 30, 2010 at 7:03

Skip I have seen renewed interest recently in the Austin Chalk. The spill in the gulf will most likely spur more interest.

Permalink Reply by Skip Peel - Mineral Consultant on May 30, 2010 at 7:09

Hey, Two Dogs. I also ran across Austin Chalk activity just over the state line in Texas. In fact from my daily review of LA. Unit Applications, I can report renewed interest in a variety of formations all across the state. For about 16 months Haynesville Shale mania suck the life out of all the other plays. Since the first of the year, new applications again reflect a more balanced and wider spread development picture. A relief I am sure for those who have no stake in the Haynesville Shale.

Permalink Reply by Two Dogs, Pirate on May 30, 2010 at 7:26

I feel that any onshore formation that has oil will be on the radar. You can kiss the gulf goodbye for a while to come. I have been on a project where they are going back into Wilcox wells that were P&A back in the hard times of the 1980's. This is much more my style than the shale.

Permalink Reply by Skip Peel - Mineral Consultant on May 30, 2010 at 7:35

Good luck on the Wilcox re-entries. IMO, the question that remains to be answered is will mineral owners accept that their tract(s) is not prospective for the shale and are they willing to take the lesser lease offers that are required to make these other plays economic. Time and more wells that define the limits of the HS will tell.

Permalink Reply by Two Dogs, Pirate on May 30, 2010 at 8:02

Where I am talking about the chalk is 14,000 feet down and the Wilcox is 11,000. The shale, if it exists this far South would be much deeper than the chalk, I would think. I think mineral owners should single out formations to lease and only lease those formations.

Permalink Reply by olddog573 on May 30, 2010 at 13:23

i have heard some of the old timers talk about drilling the wilcox formation back many years ago and they said it was always productive. although all my property is located within the shale boundries, i would love to see development of the other formations that are present in our area. three years ago i would have never imagined this much activity would be occuring here. i wonder what it will look like in another three years? i also suspect the spill in the gulf will help to shape things here more than before.

Permalink Reply by Skip Peel - Mineral Consultant on May 30, 2010 at 13:30

The Wilcox is a conventional reservoir and therefore is not productive over a large aerial extent. In other words, it is only productive in limited, localized locations. Like other conventional formations, it has relatively high permeability compared to the HS. Which means hydrocarbons can migrate upward until they encounter a trap or cap. There they accumulate. One benefit of HS development that we discuss infrequently but should have significant future impact is the modern logs and coring which will locate shallower formations likely to be productive. Never have so many deep holes been drilled over such a wide expanse of surface. There will be production from formations other than the Haynesville that might never have been discovered if not for the shale play.