Replies to This Discussion

Permalink Reply by Rock Man on July 31, 2019 at 4:23

(Note - I Posted this on another thread before seeing this new thread)

 

That's a pretty condemning news article for the play - at least in the areas where CP has been active and drilling. Discussing the TMS as an alternative here doesn't make me feel any better either considering the difficulties with that play.
CP's comment about focusing on the Permian Basin makes sense considering their position - there they have "proven reserves" and just need to put capital into those areas to exploit it.
In saying all this, a major spending several millions of $$$ for acreage and drilling / evaluation in a new play area is typical. I have seen it across the USA and overseas in many different plays.
Now the questions is - What about the other operators in the La Hz AC play??
PS - Expect an update from Kirk on his site about CP's position.

Permalink Reply by David Crockett on July 31, 2019 at 15:41

Kirk has posted an update on his blog July 31

Permalink Reply by Rock Man on July 31, 2019 at 15:43

Quicker than I thought / he is on top of things

Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2019 at 1:07

Kirk has a reason to rush to damage control.  He has a lot invested in the LA MS Stack Play as he so optimistically calls it.  This area is his baby but it is hard to believe that the companies exploring the LA AC don't know what he knows and haven't taken into account all the known variables.

Permalink Reply by Rock Man on July 31, 2019 at 4:24

Correction to the Houston Chronicle release - the TMS "underlies" the AC section. Not "overlaying" as noted in the article.

Permalink Reply by Charles Jenkins on August 1, 2019 at 3:21

What does DHC/CC mean?  And MMBO EUR?

Thanks

Permalink Reply by Skip Peel - Mineral Consultant on August 1, 2019 at 3:29

MMBO EUR is million barrels of oil and EUR is Estimated Ultimate Recoverable, a projection of total cumulative production over the lifetime of a well.  Got any context for DHC/CC?

Permalink Reply by Larry L. Jones on August 1, 2019 at 3:38

Dry Hole Costs/Completion Costs

Permalink Reply by Charles Jenkins on August 1, 2019 at 3:38

check Kirk's last paragraph on his recent blog post for DHC/CC . . . and thanks for your response. 

Permalink Reply by Rock Man on August 1, 2019 at 4:19

Point to keep in mind as to CP recent actions - they have been a very active player in the Eagle Ford / Austin Chalk trend in S Tex (Live Oak / Karnes / McMullen County area) for over 10 years. They have played it like they should (in my opinion) with lots of tech effort (logs, core, analysis, engineering work, etc. to understand the reservoir and its pros and cons).

Very similar to EOG's approach to these types of plays.

For them to publically "pull the plug" on La AC Hz Frac play at this time should be not be construed as a knee jerk decision but one that was well thought out based on the integration of the new info that they obtained via their recent drilling and completion efforts with the regional mapping of the historial info in this area.

And this includes comparing those results / observations to their analogous S Tx efforts.

Some companies may have gone stealth on their efforts in Louisiana chasing the AC - and if things didn't work, that effort would have been swept under the rug and no one would know any better about what they ha done. But early on, CP posted about this play and therefore had to "respond to the analysts" and Wall Street as to their results and future plans.

A good and responsible move by the CP managers (in my opinion). 

This decision is probably a "non event" as to the CP stock. Those in the know will just chalk it up to a major operator checking out another new play area and then not having it "work:.

There are still several players in the trend and it is a LARGE trend. It will be interesting to see what transpires here in the next 12-18 months.