Replies to This Discussion

Permalink Reply by 1kw6x71km1v37 on January 14, 2014 at 7:25

Halcon is the only E&P company out of several operating in West Louisiana that I have found truthful from the get-go over the past 30+ years. That said, always watch your back in this business.

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Permalink Reply by Steve on January 14, 2014 at 9:05

Thanks. That is encouraging to hear. On a side note, some of us in W. Fel Parish have been receiving offers to buy our net mineral acres in the last few days, so I am suspecting someone has been given an advance heads-up on possible drilling activity in this part of the TMS. Except for the one Devon (Murphy) well our parish has been ignored for the past 2 years. I personally received 2 offers in the past 2 days - one for $2500 per net mineral acre and another for $500 per net mineral acre - quite a range in valuation. I am taking this renewed interest in purchasing minerals as a good sign - even if it is a poor deal.

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Permalink Reply by Two Dogs, Pirate on January 14, 2014 at 10:19

I keep hearing rumors that Halcon may buy a stake in the Eastern part of the TMS. They have around 75000 acres in Rapides  and Avoyelles Parishes.

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Permalink Reply by Steve on January 14, 2014 at 11:28

It certainly wouldn't hurt for someone like them and a few others to come in and help get the play moving off 1st base, since Goodrich and Encana appear to have bitten off a little more acreage than they have the money to drill.

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Permalink Reply by 1kw6x71km1v37 on January 14, 2014 at 14:23

Goodrich and Encana have probably already made their money flippin' TMS working interests to the Chinese and God knows who else.

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Permalink Reply by Steve on January 14, 2014 at 14:30

Sinopec has the money for sure, that may help Goodrich. Encana ? I am wondering whether or not our entire Country will be sold off or mortgaged before my time here ends. It is lookin that way at the moment.

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Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2014 at 9:51

Sanchez says will drill first Tuscaloosa Marine Shale well in 2014

Houston (Platts)--15Jan2014/316 pm EST/2016 GMT

Small aggressive independent oil and gas operator Sanchez Energy said Wednesday it plans to drill its first well this year in the Tuscaloosa Marine Shale oil field in Louisiana and Mississippi and is devoting a sizeable chunk of its capital budget to that emerging play.

Houston-based Sanchez will spend 10% of its $650 million-$700 million capex for 2014 on the TMS, located onshore in an emerging mature area that is now being tested with unconventional techniques, company CEO Tony Sanchez said in a statement. The other 90% is devoted to the Eagle Ford Shale oil and gas play in South Texas.

"We are not forecasting any material production from our step-out activities in the Tuscaloosa Marine Shale this year," the CEO said. "However, we remain excited about the potential that could start to be developed" there.

Sanchez' drilling this year will be "a combination of operated and non-operated wells, with our first operated well expected to spud in the first half of 2014," he added. "We expect the substantial increase in TMS industry activity during 2014 to positively influence the well cost structure and overall knowledge of the play."

Goodrich Petroleum, also Houston-based and one of the more advanced TMS operators, has said it believes the field is commercial and is also stepping up its activity there. Goodrich officials have said they expect roughly 45-60 industry wells to be drilled in the play in 2014, compared with 15 last year. The TMS is still being tested for its geologic and petrophysical properties and production capacity, and operators that have drilled several wells are delineating the play's boundaries. Goodrich said the TMS is found at depths around 10,500-14,500 feet.

Sanchez said its 2014 production should range from 21,000-23,000 b/d of oil equivalent; the company produced nearly 12,000 boe/d in Q3 2013.

--Starr Spencer, starr.spencer@platts.com --Edited by Katharine Fraser, katharine.fraser@platts.com

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Permalink Reply by Steve on January 14, 2014 at 15:16

If Halcon has 75,000 acres already in the West TMS that would require stepping up activity in that area of the TMS wouldn't it? I hope they have more than one drilling rig.

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Permalink Reply by Two Dogs, Pirate on January 14, 2014 at 15:44

There is no drilling rig that I know of in the Western side of the play. Halcon has been mostley silent about this area.  The only thing I have seen is an interview with Floyd Wilson  where he said that the formation, in the Broadway well in Rapides Parish, compares with the wells that have been drilled in Mississippi. The majority of leases are for 3 years and were bought from the Spring of 2012 through the Spring of 2013. Most have kickers of 2 years for $500 or 5 years for $800.

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Permalink Reply by Skip Peel - Mineral Consultant on January 14, 2014 at 15:54

Halcon has no rig running currently in the area covered by the Rig Data Ark-La-Tex rig report.  The report covers AL, AR, MS, N LA and parts of TX and OK.

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Permalink Reply by Two Dogs, Pirate on January 14, 2014 at 15:05

CS did you lease to Halcon?

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Permalink Reply by 1kw6x71km1v37 on January 15, 2014 at 7:39

No, I did not. The big money has not come to town, so to speak, at least not yet. Seven or eight wells are said to spud in the Merryville/Junction area this year. If what Floyd says about the Broadway is true, the big money may get here PDQ. Of course, all this is perhaps meaningless forward-looking statements. Which why we have big porches in LA, in case it comes down to we can't pay the light bill. Again. Been here and done this before.

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