TMS related news. 

In recent quarters, a handful of independent exploration and production (E&P) outfits have touted their acreage in the Tuscaloosa Marine Shale (TMS), a formation that stretches from Texas to Louisiana and Mississippi. The field is far from a new discovery; famed Mississippi wildcatter Alfred Moore spearheaded drilling in the TMS in the 1960s.

The play’s proximity to the Haynesville Shale should make it easier for producers to redirect drilling rigs from the out-of-favor dry-gas play and limits bottlenecks associated with a lack of midstream infrastructure. Despite boasting similar geologic characteristics to the Eagle Ford, the TMS is far from a slam dunk, which explains the low prices that early movers have paid to build an acreage position.

Goodrich Petroleum Corp (NYSE: GDP), for example, amassed about 74,000 acres, paying an average of $175 per acre. Meanwhile, Devon Energy Corp (NYSE: DVN) has accumulated 250,000 acres on the Louisiana-Mississippi border at an average cost of $180 per acre.

Thus far, early movers in the TSM have yet to report drilling results, though management teams have indicated that these tests have been encouraging. Devon Energy recently completed drilling, coring and logging its first vertical well in the play and plans to sink its first horizontal well later this year. Denbury Resources (NYSE: DNR) and its partner EnCana Corp (TSX: ECA, NYSE: ECA) are at a similar stage in their drilling program and plan to sink a horizontal well in September.

During EnCana’s conference call to discuss second-quarter results, Executive Vice-President Jeff Wojahn described its TMS assets as “a promising liquids-rich opportunity” based on “how the rock breaks, the hydrocarbon content and gas in place, and the like.”  Management also pegged the drilling costs for its first horizontal well–a 12,000-feet deep vertical shaft with a 7,500-foot lateral segment–at about $8 million.  

Meanwhile, Goodrich Petroleum’s CEO provided a bit more color on his outlook for the TSM during the Q-and-A portion of the firm’s Aug. 4 conference call:

We’re very comfortable today with what we see from a geologic standpoint of going ahead and drilling wells. In fact we don’t really even see much need, at least in most of our acreage, for pilot holes. There [are] sufficient amounts of historical vertical wells that have been drilled through the Tuscaloosa Marine Shale that we’re comfortable going out and drilling today. I would characterize at least in our view that the sole or the largest single risk to the play is just one of the economic performance versus well costs. We know the Tuscaloosa is present, sufficiently thick, thoroughly oil saturated. It’s just a little unproven in that no one has drilled yet a well that’s demonstrated in the EUR horizontally that would match up to costs. And that’s just [be]cause there haven’t been really many or any of them out there that have done that.

Drilling results in this frontier play could provide a meaningful upside catalyst for these E&P operators. At the same time, if the play proves uneconomic to produce or drilling results disappoint, the low cost of acreage provides a degree of downside protection.


Post any articles or information you believe to be relative to the TMS.

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Replies to This Discussion

Abington -

Hydro power, in particular, will decline in the western developed countries, not increase - environmental concerns are preventing new hydro plants from coming on line, age, siltation and environmental issues are causing existing hydro power to be decommissioned.  


Solar, in the traditional PV sense, requires large land areas, and doesn't produce at night.  Solar towers can produce electricity at night.  Wind doesn't produce when the wind doesn't blow, the noise is an issue, and they kill birds.  


Anyway, I think any prediction of a decline are greatly exaggerated, particularly for NG.  


Oil may be partially replaced by oil from biological sources, but declining use of all oils will more likely be due to an increase in cost.


I like your predictions better.


Landrieu Comments on Tuesday's Energy and Natural Resources Hearing on Natural Gas Exports


Read more: - Landrieu Comments on Tuesday s Energy and Natu...

Florida parish officials meet with DeSoto parish officials to discuss the pros and cons of oil and gas exploration in the TMS.


This is a quote from Encana’s presentation yesterday talking about their new well pad design “Resource Play Hub design”

“Represents 4-6 square miles of reservoir accessed from a

single surface location.”

Houston firm reports find in Tuscaloosa Marine Shale

by Jennifer Larino, Staff Writer

December 9th, 2011 · No Comments · Blog

Houston-based Indigo Minerals announced today that it has struck pay dirt in one of the newest stretches of shale oil and gas in Louisiana to start drawing industry attention.

In a statement through its Louisiana subsidiary, Indigo II Louisiana Operating, the company said its first horizontal well in the Louisiana Eagle Ford Shale, also known as the Tuscaloosa Marine Shale, resulted in oil and liquid natural gas finds. The 2.7 million-acre play spans central and southeast Louisiana and a section of southwest Mississippi.

The Indigo well, in Rapides Parish, flowed at a rate of about 543 barrels of oil per day during recent testing. To put that into perspective, the BP oil well that blew out in the Gulf of Mexico last April flowed at rate of 53,000 barrels per day before being capped in July, according to final estimates.

read more:

Tuscaloosa Marine Shale promising for drillers and owners
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(The following article about the Tuscaloosa Marine Shale was written by Hannah Catchings and Tom Aswell. The article is from the perspective of the Feliciana Parishes)

East Feliciana parish happens to sit right on top of the Tuscaloosa Marine Shale play, a 2.7 million-acre tract that is estimated to hold a minimum of seven billion barrels of oil.

Called the Louisiana Eagle Ford because of its geological likeness to the highly productive Eagle Ford play in Texas, the Tuscaloosa Marine Shale is the second major find in Louisiana. The Tuscaloosa Marine Shale play has the potential to do for oil what the Haynesville Shale play in north Louisiana has done for natural gas.

The Tuscaloosa Marine Shale play cuts across central Louisiana from the Texas border to the Florida parishes. It includes all or part of the parishes of Vernon, Beauregard, Allen, Rapides, Evangeline, Avoyelles, St. Landry, LaSalle, Catahoula, Concordia, Pointe Coupee, East Baton Rouge, St. Helena, Livingston, Tangipahoa, St. Tammany, Washington and East and West Feliciana as well as all or parts of the Mississippi counties of Adams, Franklin, Wilkerson, Pike, Amite and Walthall.

Comprising nearly a third of the total land area for Louisiana, it is significant that the so-called sweet spot in the play is centered in East and West Feliciana, extending into parts of St. Helena, Tangipahoa and Livingston. Some 1.2 million acres have already been leased in that sweet spot. There are already about a dozen wells operating from Vernon to Tangipahoa parishes with the bulk of those located in the Felicianas.

That is important, given that once production starts for real in the Felicianas, the economic impact will be a major windfall. Production will create jobs as well as a demand for more housing, more restaurants, lease and royalty revenue for residents, and increases oil and gas severance tax collections for the state and the parishes.

To best demonstrate the potential economic impact, consider that for the month of November, East Feliciana Parish collected $2,436.27 in oil severance taxes and $2,284.70 in severance taxes on natural gas. West Feliciana did somewhat better, collecting $15,310.16 in severance taxes on oil and only $43.73 on natural gas.

Read more: - Tuscaloosa Marine Shale promising for drillers... 



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