Replies to This Discussion

Permalink Reply by flex auger on February 28, 2012 at 14:14

Thank you Ed.

Permalink Reply by Hog_Ark on February 28, 2012 at 14:15

Well gang, I feel a lot better about brown dense after reading this report. Its really hard to see the scope of things as an individual that knows nothing about the oil business. I see now this is a long term project and assumptions about the early results of one well is very misleading to the amateur. We will just have to wait for the results over the next several years. A lot of companies and people working, doing drilling, science, testing and so on before we will know what we have. I am not gonna let daily information I read here keep me from taking my eyes off the long term goal! I am here to enjoy the ride, share some thoughts and make new friends!

thanks Roger

Permalink Reply by Skip Peel - Mineral Consultant on February 28, 2012 at 14:29

The Roberson well results are generally in line with the comments made by the industry members active in our LSBD discussions.  One well does not prove or disprove the economic viability of the Brown Dense.  And wishful thinking aside, there is a progression, a learning curve, that must be traversed well by well to reach the definitive answer.  Personally I am encouraged that results will improve with each new SWN well completion.  And that some substantial portion of the SWN leasehold will ultimately be determined to be commercial.  If that happens it will take 18 to 24 months for production to ramp up owing to the fact that the associated gas produced with the oil can only be flared on a temporary, short term basis.  For the play to take off will require extensive pipeline gathering systems to handle the nat gas produced with the oil. 

Permalink Reply by Colquitt Charlie on March 5, 2012 at 11:38

Mueller just interviewed live on "Fast Money".  Caught tail end of interview when he stated to interviewer: " I didn't say the first well was a disappointment".........He also said next two wells were expected to be better....FWIW

Permalink Reply by Chester Fairfield on March 6, 2012 at 4:45

I saw this as well.  The majority of the interview was them asking him questions about NG powered cars. 

Permalink Reply by The_Baron on March 6, 2012 at 6:59

"He also said next two wells were expected to be better"

 

What else would he say? They pretty much bungled the first one anyways.

Permalink Reply by Polly Ann Foote on March 6, 2012 at 9:09

Baron:
Could they go back in and salvage that well or is it a lost cause? From this it would seem that just as one does not want to be the first to buy a new technology until it has been tested by the market, one also does not want one's minerals to be the first drilled in an experiment.
polly

Permalink Reply by The_Baron on March 6, 2012 at 9:36

I doubt it. This well had significant problems drilling. They could always drill another well though, maybe even from the same pad.

 

I suspect they will go on testing in a wider area first to see what the rock looks like throughout their leasehold and maybe find better, easier to dril rock.