Can anyone tell me the possibility of TMS activity in Evangeline Parish??  I have several hundred acres and the map looks like it does cut through some of my property; however, it is really close so it is hard to tell the exact location that the TMS line runs!

I have always heard that oil is usually under decomposed organic matter and large portion of property is a 3500 acre lake, but i do not believe that anyone has ever did any testing around it?  

I would really appreciate it if someone could give me any information on the possibility of us getting into the TMS play??  Or any other play for that matter?  Am i just wishful thinking and holding my breath for the TMS to explode for nothing??  Or does my chances look good??  Thanks..

Tags: Drilling, Formation, Oil, Play, SHALE, TMS

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You have to be realistic.  We are talking about depths thousands of feet below the surface of any decomposing organic matter.  We are talking about the Cretaceous Geological era, millions of years ago.

And yes, at that depth things are pretty hot.  Heat turns the oil into gas naturally, ergo it is called natural gas.  Right now no one really wants natural gas, there is a glut on the market.  Someday but when it will be in demand but not anytime soon, maybe 20 or 25 years from now.

Hate to bust your bubble, but this era is not for you.

 Thats what i was afraid of!  Main reason i was asking, was because the amount of drilling that has started back up around the area!  And i know companies began leasing around the Easton area near Pine Prairie in the last year or so and a lot of my acres are located very near Easton!  In fact, we actually signed with a company to do some testing on a very small portion of our property that is located in Easton!  But i def. do understand what you are saying about the temperatures!

Another question and this is about pipelines more so than the oil topic.  But couple years ago, a company contacted my brother and i along with couple other land owners in the area about running a Gas pipeline through our property (we have couple pipelines that were ran years ago on some of our property already)!  Well the company stayed for while and all papers were drawn up with the contracts and everything!  The map was completed and all land owners were contacted and only thing that was left was for us to finish the negotiation and sign the lease!  Well after 2 or 3 weeks, my brother gets a phone call (or he called them) and was informed that the company just decided to pull out of deal and head back home!  I spoke with couple guys in the industry about it and they told me that was very strange because normally once they get all the title work, maps, contracts together, that is usually a done deal and def. will be completed! 

Do you have any input on a situation like that??  Is there a specific reason a Gas company would go through all the work of lining everything up and then right before they start, pull out like they did??  And from what i was told, it was supposed to be a very big pipeline that ran a good ways for a reputable company!  I just thought that was very odd...  Any input would be greatly appreciated!!  Thanks..

About a month ago MidStates announced that they were selling their Pine Prairie Field then about a week later the CEO got fired.

Sometimes pipeline projects get put on the back shelf as the 160 mile project that would have run from Boyce to St James. It may happen sometime in the future but it is sitting on the shelf for the time being.

I have leased many acres that never got drilled and the leases ran out.

A lot of the land around Easton and Pine Prairie are held by production (HBP) from old wells. When I was leasing for Chesapeake back in the 1990's they told us to stay away from that area because of all the HBP property down there. I bought leases all the way down Hwy 167 to past Bayou Chicot where you start down the last hill. The LaHays were some of the last leases I bought before they shut the project down. In fact I was holding a bank draft ($50,000) for one of the family members that his lawyer would return my calls and CHK said to tell him the deal was off. 

Mr. Morrison, how do you define "era" ? In my view natural gas can come back at any time for many various reasons. In my lifetime I've seen gluts, shortages, booms, bubbles and bust, all turn quickly due to weather, war, and what Mr. Alan Greenspan called irrational exuberance.

If we start exporting nat gas I think we'll see another era come about rather quickly.

The answer is Barnett Shale, Haynesville Shale, Marceleus Shale and other Shale patches around the great US of A.  Those are generally shallower formations, thus less expensive to drill and the pay back is sooner.  The US of A has a vast abundance of developed gas and more undeveloped gas shale in Colorado and California for example.  So it will be a long time before new and deep gas is going to be a target for development.

Now if you acreage is sitting in the midst of a developed gas field, has developed infracture like pipelines available, they may yet drill for deep gas.  It is all an economic equation, and if the ecomomics are not right (cost of development, the price of gas and available infrastructure) no one is going to waste their money drilling for gas.

We are in the era of cheap gas.  It used to be around $12 or $13 per million cubic feet and now days sometimes gets to $5 per million cubic feet of gas.  It is going to be that way for a long time.

What makes you think Obama is going to export gas?  He will not even build the pipeline from Canada (and the Dakotas) to the refineries.  How is he going to get the gas to the ports?  Who is going to build the liquification plants?  And when are they going to repeal the export bans (requires Congress and the President to agree)?  I think it will be at least 2 years before anything even starts moving on those issues first.

So my friend, we will be awash in gas in the US for a long time.

Also the people need to realize that the cost of exporting LNG is $6-$8  per mcf, so whatever price they see in the world you need to subtract $6-8 from that price to get the maximum US NG price for export.  So if Japan will pay $13 for LNG, that means that US producers can only get $5-7 per mcf.  Also many other countries are also in the race to export LNG (Australia & Middle East) so the world wide price of LNG will be going down/staying flat in the future.

Well maybe the Japan example would be similar to a drug dealer getting in with lower prices knowing once the addiction takes hold his pricing can be adjusted.

Japan is getting away from nuclear, so whatever takes it's place will grow as they close nuke plants. Remember these publically traded companies don't necessarily need massive profits today but the perception of growth in the future in order for the stock price to grow. I don't exactly agree with that stategy all the time, but how many tech/dotcom companies made (eventually lost) billions due to perception of future growth?

Well maybe we are differing on time horizons. When I look at the charts I see $12 to $13 dollar price spikes in 2005 (Katrina , Rita, housing bubble) and 2008 (Gustaf , Ike and the time right before the house bubble bust when oil shot to $147) so the normal price in recent history is closer to $6 maybe $8.

As far as what Obama is going to do, who knows? But Obama only has a short time left in office. In my view even if Hillary wins in 2016 you can't rule out nat gas exports if the right hands get greased with a little cash. Cheniere would be the name that I think will build the first LNG export plant.

Cheniere built an LNG import facility on the Gulf Coast southwest of Lake  Charles. By the time they had finished, the market for LNG had reversed itself. The company then proceeded to convert or build anew in export plant that is still under construction to my knowledge, but should be the first to come on line in the area.


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