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Permalink Reply by Skip Peel - Mineral Consultant on March 11, 2018 at 4:40

RM, care to provide an opinion on the Upper Smackover and Lower Smackover vuggy matrix potential?  This is the first I recall of SWN mentioning these targets.

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Permalink Reply by Rock Man on March 11, 2018 at 6:19

SWN including mention of the "vuggy matrix potential" is most probably teaser gravy to attract more attention and tout prospectivity.

The term vuggy is usually used to describe the presence of large, non connected void spaces in carbonate intervals - these tend to be formed by various localized diagenetic processes (including surface exposure). When present, vugs can give you some very good storage capacity (sometimes you can put your finger tip into the holes), but the connectivity (permeability) of this sort of system tends to be very low.

So the big question is - "How do you connect up these vugs and get the O&G (and associated water) out of the reservoir?"

The Upper Smackover will tend to have more matrix related P&P - and the presence of a vuggy porosity component. The Upper Smackover section has been chased for O&G in this part of the world for decades with some excellent historical results. The production from this package is very localized and dependent on unique reservoir properties. It is a legitimate secondary target in the SWN area (not just from vugs but from more conventional P&P).

I don't put much credence in having vuggy porosity being a component of prospectivity in the Lower Smackover. The keys to this play is the inherent nano P&P in this organic rich section - and how to drill, complete and produce this economically.

A similar play that has had a similar track record is the Goodland Lime in East Texas - organic rich carbonate that has had some success but which is looking to be uneconomic. Companies like Chesapeake, EOG and SWN have been in that play are either have gotten out or are looking to divest.

Another organic rich carbonate play (which was gas prone) is the Pearsall Shale in S Tx - lots of drilling by EOG and others. But play proved to be uneconomic.

The sad but real story here is that not all "unconventional shale" plays work economically - especially in today's lower price environment.

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Permalink Reply by Skip Peel - Mineral Consultant on March 11, 2018 at 6:29

Thanks for the explanation.  It may take a meaningful improvement in well results from Ankor to breathe new life into the Brown Dense.  It's good to hear your opinion that they have some capable and experienced management.

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Permalink Reply by Rock Man on March 11, 2018 at 8:32

Just deleted my comment as to Ankor having Penn Virginia management background  - I got them mixed up with another company.

Majority of Ankor experience is tied to offshore Gulf of Mexico - but I am sure that they have expertise in hard rock on shore

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Permalink Reply by Skip Peel - Mineral Consultant on March 11, 2018 at 8:35

Thanks for the correction.

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Permalink Reply by pip318 on November 23, 2018 at 5:04

It looks like SWN found a partner.    Verlandera

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Permalink Reply by Skip Peel - Mineral Consultant on November 23, 2018 at 5:08

Thanks, pip318.  I can't find anything on Verlandera.  Can you share a source for the news?

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Permalink Reply by pip318 on November 23, 2018 at 8:12

I saw the change on Sonris for the Union Parish Wells. 

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Permalink Reply by Skip Peel - Mineral Consultant on November 23, 2018 at 8:15

Thanks for bringing this to our attention, pip.  I found some additional sources and posted a new discussion on the Main Page and placed a link to that discussion in the Union Parish Group.

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