Views: 51534

Replies to This Discussion

Very comparable to Texas completions

The Blackbrush application for 9 AC drilling & production units will be heard June 5.  The first COP AC unit application is heard the week before, 5/30.  I expect we will see multiple well permits later this month or early in June.  It will be of interest to see if there develops some sharing of science between the LA AC operators. 

Cooperation between companies normally doesn't happen (even if they are working interest partners). But I do look for an independent group like Core Lab putting together a consortium where they get whole core from various operators in return for them being able to access and use the data from the other wells in the Consortium.

A good example of this is Core Lab's Midland Basin consortium where there are over 80 wells with core results and test results details available for all the members of this group.

I am biased, but the "answer" here as to where are the best areas for the AC Hz Frac play as well as how to achieve the best EUR's and economics is "in the rocks". And how drilling and completion engineers utilize that info to optimize lateral location and subsequent stimulations.

And in another comparison, the Louisiana AC Hz Frac play is about halfway through the Book of Genesis as to its evolution (IMO)

This was recently posted by a major investment banker group

Some interesting info as to upside projections - even more interesting that this play is hitting the radar across industry sites.

================================================================================

Attachments:

Very interesting Rock

Yes - just need to keep in mind that this is a "what if" set of comments on economics and success based on ties to Tx AC Hz frac success.

Let's say very optimistic viewpoint - but a possible one!

And most are based on $50 oil. 

For some reason I could not reply to the item I wanted to / think it is my computer.

Re: Comments about $50 oil price

It is true that the economic scenarios presented in the items I posted tonight are using a low oil price number, but as Skip and others have noted in the past, the "realized" price for any oil produced will not be the same as WTI or any other oil price metric.

Marketing arrangements and contracts will negatively impact the price this paid for oil - as well as the price that royalty payments are based on.

This is an extreme example, but several years ago, there was a $10 to $15 per BO deduction on produced oil in parts of the Permian Basin.

With AUS leasing activity in EBR, West and East Feliciana any St. Helena Parish AUS leasing activity ? 

I don't believe that link is working,  also tried copying, that didn't work either.

so, the main thing that pertains to Austin chalk in la. was four tracts of land in east and west Feliciana parishes.  they were leased by petroland-61 acres at $529 per acre with a .255 oil and gas royalty,

new holdings llc, 7 acres, $1,011 per acre with a .265 oil and gas royalty,

ConocoPhillips, 61 acres, $516 per acre, with a .250 gas and oil royalty, and last

Conoco phillips 112 acres, $516 per acre, with a .250 oil and gas royalty.  

Thanks for posting, David.  Please allow me to provide a little clarification. 

There were two tracts associated with the AC up for bid.  Tract 44881 covering 61 acres in multiple sections of E and W Feliciana received bids by three parties.  The New Holdings bid was for only 7 of the 61 acres so they were betting on being the only bidder.  Any bid for the whole 61 even at a lesser offer would have won.  The other two bids are interesting first in that the actual operator rarely bids for themselves, in this case ConocoPhillips.  What you usually see is a company that specializes in state mineral auction bids making a bid on behalf of a client.  The successful bidder will assign that state lease to the client at some point in the future.  The thing that really stands out is how Petroland beat COP by the narrowest of margins especially on the bonus offer, $529 to $516.  Almost like they had some inside information.  Their 25.5% royalty is also a little unusual because the state always goes for the bonus money over the royalty which I find wrong headed and anything over 25% is rare.

ConocoPhillips was the sole bidder for Tract 44882 covering 112 acres and received the lease at the same bonus and royalty as they bid for 44881.

Since these bid tracts cover many sections in their 61 acres it is highly likely that these are parish road rights-of-way.  State leases are often a good indicator of near term intent to drill.  Operating companies usually aggregate all or a large percentage of their private land leases first and then get their state leases.  A state lease is only effective for one year at the bid paid.  If a leaseholder wishes to keep the lease beyond a year without drilling it they have to pay an additional bonus.  For that reason, state leases are often the last acquired before the bit hits the dirt.  That would jive with the public statements made by COP that they will drill their first wells later this year.

RSS

Support GoHaynesvilleShale.com

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service