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.
It's intermittent and has been occurring for a week or more. My second attempt to post a response works so I haven't mentioned it to Keith. If it's wide spread and continuing for more members I'll report it.
I agree with you these companies have about as much as they can handle if you consider their size and capital position.
The interesting thing to me is there is about 3 - 500,000 acres across the trend South of the Lane 64 well that has not been leased since the mid 90's. That was when the first Richland well was drilled with limited success by OXY. Those OXY leases ran out or were dropped and the area has been unleased since. Of note; at that time we did not have a clue about the TMS. Our only focus was the Chalk and TUSC sands and that's what we thought OXY was looking at. After those leases ran out no has come back and looked at this area since. Its also interesting that the Southern part of the trend appears to have both Eagle Ford and TMS and both seem to have good resistivity. My other observation is: There are a GREAT number of wells that were drilled through the EF and TMS on the way to TUSC. It seems that any of those wells could be re-entered and fracked in either or both formations to see what the possibilities for those formations are in this area.
would it be feasible to reenter a vertical well to try to horizontally produce from the TMS? I know of some TMS stripper wells that are vertical, and it seems like it wouldn't be economic to try and recomplete in the TMS without going horizontal, even if you fracked.
I think on a test basis it would be feasible. I'm not saying that they would be great producers. It would at least give an idea of the potential and frackability of the formation.
Joe, as these companies drill, do they bring up core samples as they hit the different layers to check out what they're going thru, or do they just go for the gold and drill baby drill till they hit a certain depth where they assume the sweet spot is located?
The stratigraphy of the Tuscaloosa Shale area has been known for decades from the vertical wells drilled to tap the Tuscaloosa and other sands. The shale was penetrated by these wells and found to contain oil. Some attempts to produce oil from the shale by vertical wells were made, but were not very successful. I refer you to the following article in Kirk Barrells blog:
I did hear on the Goodrich Petroleum earnings call that they would take some core samples from one of their planned wells. They called this doing a bit of "science".
With the drilling of long laterals and stimulating the formation with multi-stage fracturing procedures it now looks like the more recent Tuscaloosa Shale wells are going to pay out and make money. Goodrich said they are placing the lateral sections of their wells within 20 to 25 feet from the bottom of the shale strata which is some 150 to 200 feet thick. They want to shoot for 8000 foot long laterals.
In most places the tuscaloosa sands are below the shale and are full of water, I question being that close to the bottom?
Yes, they do. Back in the Tusc days I went on one site after the left and there were bags of cuttings that the labeled by the footage that they had been drilling at the time. I'll picked up several of them and will have to go back and try to correlate them to the log.
Time to bring in some big joint venture partners for all three players. Ramp this baby up big time. Keep waiting for news on this. Need to knock the ball out of the park. Talk about a potential economic shot in the arm.
The only way this thing is going to take off is for the "BIG DOGS" to come in. That would include: EOG, XTO/Exxon, Halcon, Shell, Marathon and maybe Hilcorp. The rest are only driven by short term cash flow that a venture partner can relate to. The companies currently operating in the trend that need venture capital are not in it for the long term and the long term is what this is going to take. This trend is too big for these "little" guys. So no, the venture capitalist I don't believe are the answer.
The right JV partner may be a catalyst for increased activity. Devon's got a pretty sweet deal with Sinopec. If I remember correctly, they get about 80% funding from Sinopec and give 33% WI in return. That's a 2.5 billion dollar deal spread across 5 plays. Either Goodrich or Encana could kick it into a whole other gear with that kind of deal.