Was contacted today about signing for a 3D seismic shoot.  I am leased.  Was offered $15 per acre plus any damages.  He said that was standard price everyone was being offered unless the lease stipulated different.  My lease Exhibit “A” has the following statement:  “No seismic survey shall be conducted on the lease premises without further permission of the Lessor, which permission shalll be subject to further requirements”.  There is a water well testing clause, but in my case that is n/a.

Not looking to hold out, just want to make sure I’m getting a fair offer.  Anyone care to elaborate on my position (lease language), anything I may need in the seismic contract, and what is a fair rate.

Thanks

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Is there any seismic activity or will be in near future for T2N R3W area in Melder?

Cannot predict if there will be any future activity in this area. Any operator will first exhaust any existing 2D and 3D data bases via reprocessing and interpretation before shooting any new data (and especially 3D which will cost in the range of $50,000 per square mile to permit / shoot / process).

Side note - Seismic will not "see" oil in sections like the Wilcox Oil Sand play, AC and TMS and Tuscaloosa. It will be used for mapping (both structural and stratigraphic). Seismic can be used to "see" gas in shallow intervals like the Frio and Miocene. Ability to "see" gas versus oil tied to the density of those fluids versus water charged sands - gas is just low density that it can give "bright spots" if the pay section is thick enough.

This play (Frio shallow gas sands) is a successful play in SW Mississippi counties (Amite and Wilkson mostly)

Thanks RM!   So they will look at existing 2D & 3D first before shooting any new data.   What is the time frame of 2D/3D technology.   IE 10 years, 20 years 30 etc.  When did it come about?

Seismic (2D) has been shot since before WW2 - obviously there have been improvements over time as to acquisition, processing and results / quality of the data.

3D came into play big time in the late 80's / early 90's and has become the norm for the industry since that time due to the amount of info that this survey type gives the operator. As with 2d, the quality and results of 3D have improved over time as technology and processing have advanced.

As to your first question, if there is any legitimate seismic data available it will be acquired and reviewed for what it may tell the operator. As a rule of thumb, historical 2D and 3D can be purchased from seismic data libraries for 5 to 10% of the cost of new 2D and 3D.

The only partner that I know of that is involved with Torrent is Natural Gas Partners (NGP) and this appears to be for financial backing. Torrent is capable of standing alone in their operations due to the past experience of their leadership with Hilcorp Energy.

David Crockett, your area was being considered for a TMS location by Halcon before the downturn several years ago. 

Echoing 2D / P, Torrent is the real deal. Their President / CEO is ex Hilcorp and has "seen it all" plus knows how to put a quality team together. NGP is their private equity provider. In this type of situation, Torrent is highly motivated to drill several hopefully good wells across a widespread area to "prove up the play concept" with the ultimate objective of having a monetization event that will allow them to pay off their investors (NGP) as well as make big $$$ for the Torrent team. Then find another area and "do it again"..

http://torrentoil.com/#

I hope they are getting geared up now and get on it. Also hope they make some big bucks doing it RM 

Odds are that Torrent will have a "portfolio" approach to their plays, i.e. will be working on several play concepts in different areas instead of putting all their nuts into one area like the La AC. I will guarantee that Torrent will put some major manpower and technology into this effort - the Hilcorp approach made their president a Billionaire (this is the same guy who gave all his employees a new vehicle for Christmas one year. They have seen how to do it right and be successful.

Due to lack of control, I would expect Torrent to drill a pilot hole for core / rock / open hole log info before drilling horizontals. Similar to EOG approach in Avoyelles.

Torrent sounds like they know what they are doing

i looked at the formation record of the 1940 Whittington Wilcox well that you posted yesterday. Ideally what would we need for the ground composition to be to make a good frackable well. I realize that well only went down to 6402 feet and the Austin chalk is between 12900 and 13200 feet. I would GUESS that it would be desirable to be hard shale?  Would the lime and shells be a deal breaker?  What about sandy shale?  

Ran out of reply options for your Whittington well comments.

Difficult to answer your questions in this manner since it is not a simplistic situation.

First off, you need to have the reservoir (rock) charged with significant volumes of O&G to be able to produce - either with or without frac stimulation depending on the reservoir.

The Wilcox sands in this well (and most wells in this play in La) are "wet" with no significant O&G presence. When this play does work, it is normally 1-2 individual sands with 10' to 50' of total O&G pay that does not need to be frac stimulated.

Plays like the AC, TMS, Eagle Ford, Haynesville, Marcellus, Permian Basin have thick (50' to several hundred feet) reservoir sections of O&G charged section (silts, mudstones, carbonates, fine grained sands) which can not be produced because the reservoir / rock is "tite", i.e. the permeability is too low to allow for O&G molecules to move from the rock into a wellbore. This is why horizontals are drilled and then frac'd - to open up as much section as possible and then rubble-ize it with frac job.

The AC is a carbonate (technically a Limestone) - this will have various degrees of brittleness which makes it optimum for frac stimulation. Key for the AC is to have sufficient porosity to contain O&G in the matrix rock that can be released by frac stimulation approach.

No porosity in AC will equal no chance of making a decent completion. Cannot get blood from a turnip.

PS - note that all these "shale plays" are not really shales - they are a mix of other lithologies / all of which have their own characteristics as to porosity, perm, brittleness, etc. As well as organic content and a thermal history that has generated O&G.

Thank you RM for taking your time to answer my questions. 

I guess all this activity just gets us all excited about the possibilities of what can be.   Also reliving the past.   My dad who passed away almost 11 years ago was so excited & followed the 90's drilling boom & would take me driving around to all the well locations.   Ah the memories!  He was leased to Chesapeake for 5 years, up until 2000 & now I have the land & rights for 66 acres of the 76 he had.   Sure miss him, he would love this.   Guess that is where I get it.

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