the south arkansas horizontal well results

deltic stock is going nuts i guess because they have such a huge

mineral interest in the brown dense area and the leasing companies

are still going full bore so i would conclude that the well is a smoker.

anyone else have any insight?

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Permalink Reply by L Davis on February 7, 2011 at 8:31

Except for the Tetra Plant that has been in production for a little over a year, the brine industry appears to be a mature industry with little growth.  New brine wells are drilled to replace old wells otherwise nothing new takes place.  Great Lakes has closed one of its plants and ceased production in the easten end of the brine formation.  The industry has heavy competition from Israel where the bromine is extracted from water out of the Dead Sea.

The main Great Lakes Plant and the Tetra plant near El Dorado is less than a mile north of me.  The wind is out of the north today and it sounds like it is in my backyard.  The industry does provide a lot of jobs for the area and I am glad we have the industry.  I believe that Union and Columbia Counties are the only place that brine production is done in the US for bromine extraction.

Permalink Reply by The_Baron on February 7, 2011 at 8:22

The AOGC has posted the competion report for the Brammer Well.

 

Just as my info had provided, this well was quite disapointing. I don't think the problems with the Brown dense can be all blamed on the troubles drilling and completing this well.

Permalink Reply by The_Baron on February 7, 2011 at 8:56

As per the official filing:

 

49 bbls/day

137 mcf/d

 

Considering the cost of this well.... I would say its a long way to payout

Permalink Reply by The_Baron on February 7, 2011 at 10:38

From what the geologists have told me, the porosity is extremly low. The rock is also very hard and dense, which makes it hard to frac. Add that to the fact that there is a good deal of H2S, espesially if an acid frac is used... all that adds up to $$$$.

 

It will take a lot more than 49 bbls a day to make a well economical. Of course, decline is importanty as well. I don't know of anyone who would have a clue at this point what the  decline curve would look like.

 

Permalink Reply by Terry L. Antee on February 7, 2011 at 10:52
On most of the wells I have seen, the decline is very rapid, with pressure dropping like a rock.
Permalink Reply by The_Baron on February 8, 2011 at 3:55

Yes, but its hard to say in this case where there are no "brown Dense" wells producing. I guess you could compare it to lower smackover for now.

 

In any case, the pressure isn't that high anyways. The operator claims this is due to the short lateral and inability to drill out the last plug. IMHO, its because the Brown dense is just that, Dense.

Permalink Reply by North LA on February 8, 2011 at 5:38
Where did you read that the operator claimed the pressure was low due to a short lateral and how do you know they couldn't drill out the last plug? thanks
Permalink Reply by The_Baron on February 8, 2011 at 6:23

O.... here and there.

Permalink Reply by North LA on February 8, 2011 at 6:32

Baron,

 

Why were all those O&G execs at the J-W hearing?

Permalink Reply by The_Baron on February 8, 2011 at 8:26
I would imagine that they wanted to hear what data J-W was presenting.
Permalink Reply by L Davis on February 7, 2011 at 11:07

Does anyone know how the brown dense compares with the Colorado oil shale?  I have read about testing that uses heat to raise the temperature to get the oil released from the Colorado Oil shale. It is not commerical at this time but appears to have some potential.  This process is done underground and does not require mining of the oil shale.  I wonder if this concept would have any application for the brown dense.

 

http://dailyreckoning.com/oil-shale-reserves/

 

Permalink Reply by The_Baron on February 8, 2011 at 3:56
Different king of rock.

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