Name: Douglas Rayburn, 63, Walthall County, Mississippi.

Company Website: www.drocoil.com 

GHS: What is your interest in the shale industry?

DR: The shale industry has the potential to help the local communities receive a much- needed alternate source of income.

GHS: How many wells have you drilled in your career?

DR: As far as drilling goes, I have personally been involved in the drilling of over 30+ wells, but I cannot remember the number of workovers in my life.

GHS: Are you currently leasing minerals in the Tuscaloosa?

DR: At this moment, I have over 8,000 acres under options.

GHS: What are your interests in the Tuscaloosa?

DR: I am interested in trying to get more attention for smaller companies ion the TMS.  In reality, there are smaller active companies than what is reported.  It seems the US economy is built upon the “mom and pop” business, and yet there are so many “mom and pop” operators that are never given any attention. Yes, they get hit the hardest and fall the fastest, but they are also some of the few that are able to rise to the top.

GHS: How do you think your company can succeed in the TMS?

DR: You see, Shell is moving out of the Eagle Ford, touted to be the hottest oil play with the Bakken. The TMS is no different. The economics is not there for companies that are billions of dollars in debt. The production doesn't pay 9.75% interest and then 20% royalty, as well as cover all the other expenses. There is nothing left to pay for the sky scrapers, the jets, the bonuses. I, on the other hand, have the same capability but without the debt. The reality is the TMS is for the “mom and pop” operator that knows what they are doing. 

GHS: In your opinion, what are the big challenges for the bigger companies?

DR: I just read that Mr. Goodrich summarized recent financial restructuring. They are betting their company on the TMS play. Only if they can raise enough money and actually use it to drill will it do them any good 

GHS: Anything unique about the TMS?

DR: They are finally keying in on the secret to unlocking the downward turn of the IPs and its fast descent. It is good to have initial production rates over 1,500 barrels a day, but how long economic production levels can be maintained to support their high debt is another critical element. This play will make money and lots of it for the ones that do three things: one, control cost; two, control cost; three, control cost.  I don't want to see others become afraid of this play because of what might be deemed economically not viable. As I mentioned, you already see Shell making this statement about the Eagle Ford, but it is too late to have an impact. There are already too many players making it. The TMS doesn't have that many players yet. I do hope to be one of them.

GHS: What does it take to drill a successful Tuscaloosa Well?           

DR: Drilling a well is not complicated, like some believe it to be. Many, many people drill wells. The TMS truly is no different, except for a slight difference in the shale portion of the Tuscaloosa, and even here, it is no different than other shale formations. When you know the lithology of the formations that you are going to be drilling, you make the necessary adjustments to your drilling fluid. If you start making decisions without possessing the necessary information or if you do not make the necessary adjustments to keep the clays from swelling, than you will have a bore hole that not only can swell but has the potential to cave in.

GHS: What knowledge is needed for the BHA?

DR: For the BHA, you do not start drilling a horizontal hole without the necessary drilling experience and technology to know with full certainty where your bit is. The tools and personnel used should be able to communicate with clarity what is going on every step of the way, foot by foot. Without any hesitation, there must be an understanding of the lithology changes that take place in the TMS. It is spastic in its nature and can change because it is a sedimentary formation. It is said to be soft in places. The LWD tool needs to be top of the line as to give as good a feedback to the caliper of the hole as possible.

GHS: Where would you pinpoint the sweet spot of the Tuscaloosa?

DR: The sweet spot was located by LSU in a detailed study of the TMS trend and hundreds of well logs taken over the years. The two lower townships across Amite County Mississippi is that Spot.  

GHS: Any other thoughts on the Tuscaloosa?

DR: I, like many others, have many thoughts on this possible seven billion dollar play. Mr. Goodrich, himself, said their own engineers did not understand why Devon did not use more sand or more proppant. Another good friend of mine with Baker Hughes said the same thing to me 18 months ago.  Devon has good engineers but they made some bad decisions as far as I am concerned.  I feel that if a person can put aside his or her own preconceived ideas and listen to new science, they will comprehend this new understanding of the reactions of crystals and mineral response to injected fluids as well as natural water influx. They will understand changes taking place by the removal of fluid that changes stable reservoir temperatures and pressures on those sediments that, for millions of years, were stable.