Dallas firm acquires Tuscaloosa interest

advocate staff report  Dec. 1, 2015; 7:38 a.m.

Dallas-based Aresco LP has acquired a working interest on 20,000 acres in the Tuscaloosa Marine Shale and expects drilling on the first of four wells to begin in December.

Details of Aresco’s ownership interest and partner or partners were not released.

The oil-and-gas exploration company’s acreage lies north of Baton Rouge and straddles the Louisiana and Mississippi state lines.

Aresco said four wells are planned for the acreage, and the wells should be drilled, completed and begin production around the middle of May.

“With the current oil and gas price downturn, we have been able to step up as an alternate funding source to help support continued development,” said Brandon Laxton, president of Aresco LP and Aresco Operating Co. “This has allowed us the opportunity to offer premium drilling positions and attractive return potential to our team of private capital partners.”

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Replies to This Discussion

Thanks for the reply, Brandon.  No morphing here, just our usual speculation and discussion.  You could clear up some of that speculation by responding to some of the specific comments posted so far in the thread.  Welcome to GHS.

Considering that Aresco is not listed as an operator by the State of Louisiana, has your company drilled LA wells previously under a different name?  If not, do you expect to apply for operator status with the state in the near future?  And to operate the four wells mentioned in the press release?

Is the reason that Aresco is not listed as an operator in the other AOIs depicted on the website due to your involvement as a Working Interest in wells operated by others?

 And dbob's query:  "In this particular case, the names are sufficiently similar to actual wells to promote confusion if one were checking production data query or the W-1 system.  But they don't appear to correspond to any of the similarly named wells that were permitted and drilled much earlier than reported.  They are also not reported as workovers."

Brandon,

First off,  THANK YOU for spending dollars during this depressed environment in what appears to currently be the red-headed step child of the oil patch.

 (At least that's what I've ascertained via the unsuccessful marketing efforts of my minerals & royalty in the play)

Secondly,  I hope you boys hit the Atlantic ocean of oil (or gas) and book so many reserves that it'll make Glenn McCarthy look like a peanut-vendor!

Regards,

JR Mabry, Landman & Mississippi Native

Mr. Laxton, would you care to update your development plans.  The original press release stated an early December spud date for 4 wells.

I looked at the Aresco web page and especially at the areas of interest. What attracted me was that they were showing Pointe Coupee and Iberville Parishes as areas of interest.  They had also highlighted West Baton Rouge Parish.  I can understand Pointe Coupee, as it is somewhat in the TMS zone but not West Baton Rouge or Iberville Parishes.  I would suppose deep gas may be available in those two parishes but not many are going for deep gas now days, it is just not cost effective.  It does not show interest in the hot zones along the state line, or parishes just south of the state line.  But then that is just hype anyway.

I checked out Aresco's address and it is either Denton County or the one just east of it.  Prosper, TX, the location of Aresco, is along US 380 between Denton and McKinney, sort of at the top end of the toll road leading out of downtown Dallas.  But it is really quite some distance from Dallas.  No matter one town is as good as another to locate your business.

Sheesh!  I had to click the 'forgot password' button so I could post this.  

You 'go x shale' posters, excluding Skip and a few others, are brutal.  I know Brandon.  I don't know him well, but I've had multiple conversations with him on the phone and sat next to him at A&D conferences here in Dallas at the Petroleum Club.  He isn't on my Christmas card list, but I know him on sight.  Aresco and Brandon Laxton are a known quantity.  

Rick Rowe

Then you are not posting enough, Fred.  LOL!  The energy industry became an Internet staple when the Haynesville and Barnett leasing reached a level of insanity that the media, and the public, could not ignore.  That ushered in a new age of circumspection regarding industry activities with GHS being the first website, not blog, to connect mineral owners and industry professionals in a meaningful way.  GHS has created a new dynamic that the industry must recognize and appreciate - the informed land/mineral owner. 

When the Internet is used to promote activities in the region of the plays and AOIs that are followed on GHS, it should be expected that they will end up posted here for discussion by the members.  Those using the Internet for promotional purposes may of course ignore any mention here or choose to join the discussions.  It is helpful to have a thick skin but that is something that anyone in the industry for long should have already developed prior to becoming a topic of discussion on GHS.  Mr. Laxton has chosen to join the discussion and that is always appreciated.  There will be some elements of this TMS investment that must remain confidential but there is also information concerning Aresco that is not, should not be, confidential regarding past performance and information included on the company's website..

Making definitive statements concerning the timing of spuds and completions will engender caution and skepticism for all who grasp the economics of the TMS play.  It's a tough promote to those who have followed the play and the players for some years as has occurred on GHS.  I appreciate your post in support of Mr. Laxton and Aresco however it still leaves open reasonable questions regarding the TMS venture.

Skip is right.  Some of us are natives of the area and have potential lease interest in the area.  We are fairly knowledgeable about the geology of the area.  We know the existing oil and gas fields in the area.  We know about the "down dip of the Edwards shelf" and what Tuscaloosa Marine Shale means and where it is located.  I can assure you it is no where near Iberville or West Baton Rouge Parishes and only is conjecture in Pointe Coupee Parish.  We have had other so called petroleum company's claim to have leases when they did not have any such leases.

So yes, we are skeptics when it comes to the TMS and possible locations there of.  And Mr Laxton's web page is not a whole lot different for Petroforce's and Patriot's web pages, the lay out is similar and filler is much the same.  They are all interested in investment in their plans, some investments are more risky than others.  And I have read all the slick publications sent out with expected returns and geologists opinions.

There is nothing wrong with seeking investments, but when the hype shows zones that are no where near the actual play of the TMS, well what do you expect us to think?

William, I don't think that the Aresco TMS announcement is necessarily associated with their Areas of Interest depicted on their website map.  For wells to be drilled this month there will need to be permits to drill authorized by the state. There are only three live TMS well permits for Louisiana and little time remaining to get a permit for a December spud.  GDP has a permit for Tangipahoa and Paloma has two for St. Helena.  Obviously that fact does not allow for four wells so if there is indeed an intent to drill that many wells there will have to be permits approved very soon.

I do not dispute your comments.  But that is not what is shown on their web page.  Tell me that is not misleading.  I wish them all the best in getting the wells started and drilled.  But I also think they should be forth right about locations they are really interested in.  Other wise is remains a bunch of hype.

Hi Chip,

I'm also skeptical. My feeling is they are tapping into equity capital as a promoter. They will make their money up front promoting the wells and the mullets that they bring in will get the crumbs. I would expect the wells to be good. But how good and how good will the completion be? Do they have the experience to make good wells that would be economical. 

I also agree with you about the highlighted parishes West of the River. I know of nothing of any importance in that area other than VERY DEEP Tuscaloosa that would be very expensive to drill. At these prices for NG they would be uneconomical to drill and complete.  

I guess this thread might be dead but I find it interesting enough to give my two cents. Charlatans, flim-flam men, hustlers and snake oil salesmen and suckers are what caused the shale boom and then reality caused the bust.

Investors looking for a good place to put their money to work were once again suckered into creating and oversupply of something and this time that something was oil and gas.

Last time is was houses and the time before it was companies with a COM at the end of their names. I think that we will one day have a real and sustainable opportunity in the TMS, but it'll be a while. I won't count on that mail box money for a long time, I guess.

I guess the comment is, "Show me the beef?"  Has there been or is there a spud in the TMS region?  I don't know but I suspect there have been none. 

Don't worry sooner or later the price of oil will go up and when it does the activity will fire up again.  I may not be around but my heirs will be.

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