Replies to This Discussion

Permalink Reply by john goodday on May 10, 2016 at 6:50

Great wells in Lincoln Parish - wish them well in Jackson Parish as well.  Horizontal technology is really working for them .  Unbelievable IP's - gas & oil -

What is the expected EUR's of these wells? 

Permalink Reply by Skip Peel - Mineral Consultant on May 10, 2016 at 7:48

Which wells - Lincoln or Jackson?  Keep in mind that something less than 5% of the produced liquids is actually "oil".  Where MRD is making money is in condensate (NGLs).  Thus the many mentions of "cryogenic" investments in the press release.

Permalink Reply by Ryan Kennedy on May 10, 2016 at 14:57

Thanks for sharing. Does the anticipated sand thickness being two or more times greater than in Terryville Field mean anything? Is that a good thing?

Permalink Reply by Skip Peel - Mineral Consultant on May 10, 2016 at 15:18

You're welcome, Ryan.  It could be, but there are more important parameters than thickness.  Since MRD is quite familiar with the petrophysical characteristics of the rock in the Terryville Complex, they should be the best judge of the science available in the historic wells in that part of Jackson.  The Q1 press release suggests that they can drill more wells in 2016 if their initial exploration wells prove economic.

Permalink Reply by CW on September 6, 2017 at 3:58

Any updates in Jackson Parish?

Permalink Reply by Skip Peel - Mineral Consultant on September 6, 2017 at 4:05

No.  After bragging somewhat on their early Jackson wells, Range has not reported completing them.  They hold work permits from the state to frack the wells but have not unless they have done so very recently and the well file has not as yet been updated.  Range may have gotten distracted by their screw up with the new completion designs in the Terryville Complex that under performed and caused them some negative publicity and a drop in their stock price.  I suspect that is a temporary situation.  The question of how do they really value their Jackson wells is likely found only in the public records of Jackson Parish for those willing to go look.  If there is a lot of leasing going on in the vicinity of those wells, that would be a good sign.  If not, then they aren't as optimistic as their public statements might lead us to believe.  We should also keep in mind that this Lower Cotton Valley play is conventional as opposed to unconventional so it may be productive in isolated areas and not continuously economic over a wider area.