Oil found below the Haynesville.

Is a Smackover Rush Coming?

Wouldn't it be nice if there were a "liquids rich" play below the Haynesville Shale?  The Smackover formation, which underlies the Haynesville in northern Louisiana and southern Arkansas, has been known of for a long time but drilling it was not considered economical.  But technology has advanced over the past decade and some are thinking the Smackover might be the next big oil play.  An analyst with Jefferies & Co. is now predicting as much.

That would be pretty sweet.  The Haynesville has largely been shunned in investor circles for its dry gas.  It's not that I need the attention, but another round of leasing sure would be fun.  Since the Smackover lies below the Haynesville and most leases have a vertical Pugh clause that only doesn't allow a lessee to drill below their established production, new leases would be in order for most landowners.  Can't you see it?  We can right the  wrongs of the past or get another bite of the golden apple.

A couple of weeks ago, I  noticed a Smackover completion in Webster Parish, (serial #241685).  But it might be best to sit and wait to see how things go before rushing out to buy that brand new Cadillac.  Everyone is looking for the next oil/liquids play and investment analysts love to be the first ones to make a call.  Unfortunately, they are not always right.  Let's hope this guy is...

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Replies to This Discussion

Permalink Reply by North LA on January 29, 2011 at 7:50
How can we get a copy of this note to investors. I would like to read it and possibly invest in some of the companies exploring the SMK. Thanks.
Permalink Reply by little ole 1st grade teacher on January 29, 2011 at 8:08
Do you know if this extends into East Texas?  If so, where does it extend?
Permalink Reply by little ole 1st grade teacher on January 29, 2011 at 8:13
I just read the "predicting as much" link above and read where it does mention East Texas.  It just doesn't say what part of East Texas or mention any counties.  Anybody have any idea?
Permalink Reply by North LA on January 29, 2011 at 8:14

lo1t,

 

It's all very speculative right now. Very few know for sure.

Permalink Reply by Bacon on January 29, 2011 at 8:16
I know the "search" function on here sux, but if you do use it, you'll find a ton info about what it is and where it is.
Permalink Reply by Max on January 29, 2011 at 8:17

Parkdota,

I hope you're right, then maybe I can pay for my new Cadillac.  I've been hiding it in my neighbors garage for the past two weeks but the repo man doesn't look like he's going to give up looking for it.  He drives by every couple of hours with his window cranked down far enough that I can see his beady eye's scanning like a snake looking for a big rat.

 

The neighbor is getting tired of me coming over and enjoying my new ride's stereo system and has even threatened to flag down the repo man if I can't control myself.  Can you believe that he also wants the spare key?  I have to wonder about some folk's motives, I'm beginning to think that my neighbor just wants my new Cadillac.

 

The bank called yesterday and I told them, oh, he died, in a car accident, and do you believe that they had the gall to ask if the car was totaled?  I hung up on them but they called right back and wanted to know when and where the funeral was going to be held.  I thought they had me, but then I remembered the newspaper that I picked up out of my neighbor's driveway and lucky for me, there was a funeral being held over in Texas that very day.  Luck just has a way of smiling on me when I need it the most.

 

There goes the repo man again, as soon as he gets out of sight, I'm out of here.

Permalink Reply by True Texan on January 29, 2011 at 12:49

I was filling up at the pump the other day and a tow truck pulled in next to me to fill up also.  Being Texan and friendly I started talking to him.   I had not had a tow in a long time and with 293,000 mile on my Ford truck I sure will need one some day soon.  I asked how much is a tow right now and he said he was a REPO truck.  It looked just like a normal tow truck.  In my zip code alone he said he had a list of over 85 cars and trucks they where looking for.  He said they had a whole fleet of truck in our area for the next couple of days to hunt down some of them.  He said that the list was given to them from only one bank.  

Permalink Reply by little ole 1st grade teacher on April 14, 2011 at 13:52
You made my day!  However, I do hope you were "spinning a tall-tale".  If not, I apology for getting a "kick" out of your misfortune.  And, please don't try and contact because I've left town.  If it is a tall-tale, please do let me know! Fortunately, I waited on retirement or I would be in "a mell of a hess". 
Permalink Reply by little ole 1st grade teacher on April 14, 2011 at 18:25
The above comment is for Max.....Have you left the area????  or are you just hiding out somewhere???
Permalink Reply by little ole 1st grade teacher on April 15, 2011 at 10:34
Max, see my comment below. 
Permalink Reply by little ole 1st grade teacher on April 15, 2011 at 10:35
Hello, Max, are you still in town?
Permalink Reply by Parkdota on January 29, 2011 at 8:39
The Webster Parish well # 241685 shows 34,698 mcf of natgas and 3,091 barrels of oil.  So, I guess at this point there technically is oil in the Smackover at least in this one area.  This section appears to have many wells with both natgas and oil production dating back to 1986 for the Smackover.

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