O.K. Newbie here so cut me some slack if I screw this up. I just noticed there's no discussion group for my parish and communication among our residents is sketchy and patchy at best because we are VERY new to the oil play, so we don't have any collective wisdom here. Any comments, insights, or even heresay welcome here. What I have to contribute is just information on lease rates and the areas they are concentrating in right now. (Averaging $150 for first three, varying for next two. From 1/6 to 1/5 royalties.) Devon is about a month into drilling it's first Tangipahoa well just a little north of me in Fluker, Louisiana. I have friends who are part of the unit but they are not hearing much of anything. Security at the site is TIGHT with our local sheriff's office maintaining 24 hour presence a couple of hundred yards from the rig itself. They ask you your business and write it all down. I think it's called a "tight hole" or something like that. They are also going to be buying all the pond water nearby. I don't know how much they are paying but will ask around.I have heard that our state is limiting the drilling of wells for water but I'm not sure of that. It was just hearsay from a friend. Well that's it for now.This is a great site. I've learned tons here. Amelia Resources has been a great help as well. Keep up the good work people.
There is your 6 acre pad with more than one well.
O.K. Joe I accidentally posted this before I was finished and for some reason didn't accept my editing. The article is old but it was mainly talking about simultaneously fracking two wells drilled near each other but not on the same pad. The other thing I wanted to point out is Goodrich Petroleum's recent earnings call transcript. One of the company guys is talking about the Eagle Ford shale and he says they are going to utilize multiple wells per pad, and "skidding" the rig over to the next well. Now he is talking specifically about Eagle Ford, but he treats the Eagle Ford and the TMS the same operationally, so part of what you are hearing is probably true in terms of future operations IF these wells start producing the flow rates they need to continue. http://seekingalpha.com/article/796541-goodrich-petroleum-s-ceo-dis...
I tried to call the Livingston parish clerk of court's office to inquire about leasing activities along the Amite River but they just keep sending me to some woman's voice mail and she hasn't called back. Some time today I might try East Baton Rouge parish clerk of court.
The guy that told me this says he had a direct conversation with an industry person and was told these things. It will be interesting to see if these statements are true.
Wow. Hearing it from an industry guy certainly firms it up. I had kind of an inkling that something was fixing to happen after reading that earnings transcript. It seemed to me that those Goodrich guys were "letting the cat out of the bag" so to speak, They already had all the acreage they wanted but they are data sharing with the other players who are still acquiring acreage. I was actually shocked by it and had to read it several times.
I found the "frac sand" part of your post to be particularly interesting. I was at a wedding about two months ago and was talking to an old friend whom I hadn't seen in years. We weren't even discussing oil leasing and I just casually asked him what he was doing now. He said he was working somewhere over in Washington parish for a gravel pit, and that he'd been very busy with a "changeover". I asked him what he meant and he said the owner was going into the "frac sand" operation for oil wells. I thought that odd given the stage of the oil drilling operations at that time and asked him about it. He said that the frac sand currently being used has to come a "long way" to get here and his boss felt confident he would get his money back for the additional equipment he was purchasing. I don't know what information that owner had but it seemed to me he would be spending a heck of a lot of money on just a hunch.
My understanding is that most of the sand available for fracking comes out of North Arkansas or Southern Missouri. That is supposedly because the sand grains are round rather than straight sided crystals. I asked how they were making the sand round that they were getting down here and was told that they have a separation process that separates the two different types of sand. I guess that is what your friend was referring to.
Now that you mention it, he WAS talking about a bunch of filtering equipment. I was surprised by the specs they had to meet in terms of content and size.
Hey Joe. A friend of mine called me this morning. He reads this board occasionally. The cell phone connection was pretty poor but I did get some basics. The frac sand operation is a reality. I didn't get specifics on where the operation is or where the sand and gravel leasing is taking place. What he did say though is that the operation is relying on continued demand from Texas. Now the economics of how it is cheaper to truck sand from middle Louisiana rather than Arkansas is something for the accountants to figure out but there it is. Hopefully, soon, WE will need so much of it they'll truck sand from Texas over to here. :)
There is certainly no shortage of sand along the Tangipahoa River that has been left over from gravel mining operations over the past 70+ years. We've had some of it tested for fracing potential; but in its natural state, it does not meet the crush specs necessary to support its use in wells as deep as the TMS. If anyone has different information on the subject, I would be interested in hearing it.
The sand from louisiana goes to texas to frack
I just spoke to a large landowner in St. Helena parish. He has acreage all over the parish but more importantly, he keeps his ears tuned in to everything going on over there. He says he hasn't heard anything unusual about the lease rates yet, but I'll bet a hundred dollars he's on the phone right now asking around, so hopefully, if he hears anything he'll call me back.
It sounds like almost everything this guy told me is more or less correct. WOW!!!!!
Oh, one other thing. The State leased acreage under the Amite River a year ago for a thousand or 1,200 per acre. That would have been in the Chipola area. And this is a year later and they are drilling. So the price could be up.
Geo Kinetic Trucks spotted on I-55 near Kentwood!