TMS related news.
In recent quarters, a handful of independent exploration and production (E&P) outfits have touted their acreage in the Tuscaloosa Marine Shale (TMS), a formation that stretches from Texas to Louisiana and Mississippi. The field is far from a new discovery; famed Mississippi wildcatter Alfred Moore spearheaded drilling in the TMS in the 1960s.
The play’s proximity to the Haynesville Shale should make it easier for producers to redirect drilling rigs from the out-of-favor dry-gas play and limits bottlenecks associated with a lack of midstream infrastructure. Despite boasting similar geologic characteristics to the Eagle Ford, the TMS is far from a slam dunk, which explains the low prices that early movers have paid to build an acreage position.
Goodrich Petroleum Corp (NYSE: GDP), for example, amassed about 74,000 acres, paying an average of $175 per acre. Meanwhile, Devon Energy Corp (NYSE: DVN) has accumulated 250,000 acres on the Louisiana-Mississippi border at an average cost of $180 per acre.
Thus far, early movers in the TSM have yet to report drilling results, though management teams have indicated that these tests have been encouraging. Devon Energy recently completed drilling, coring and logging its first vertical well in the play and plans to sink its first horizontal well later this year. Denbury Resources (NYSE: DNR) and its partner EnCana Corp (TSX: ECA, NYSE: ECA) are at a similar stage in their drilling program and plan to sink a horizontal well in September.
During EnCana’s conference call to discuss second-quarter results, Executive Vice-President Jeff Wojahn described its TMS assets as “a promising liquids-rich opportunity” based on “how the rock breaks, the hydrocarbon content and gas in place, and the like.” Management also pegged the drilling costs for its first horizontal well–a 12,000-feet deep vertical shaft with a 7,500-foot lateral segment–at about $8 million.
Meanwhile, Goodrich Petroleum’s CEO provided a bit more color on his outlook for the TSM during the Q-and-A portion of the firm’s Aug. 4 conference call:
We’re very comfortable today with what we see from a geologic standpoint of going ahead and drilling wells. In fact we don’t really even see much need, at least in most of our acreage, for pilot holes. There [are] sufficient amounts of historical vertical wells that have been drilled through the Tuscaloosa Marine Shale that we’re comfortable going out and drilling today. I would characterize at least in our view that the sole or the largest single risk to the play is just one of the economic performance versus well costs. We know the Tuscaloosa is present, sufficiently thick, thoroughly oil saturated. It’s just a little unproven in that no one has drilled yet a well that’s demonstrated in the EUR horizontally that would match up to costs. And that’s just [be]cause there haven’t been really many or any of them out there that have done that.
Drilling results in this frontier play could provide a meaningful upside catalyst for these E&P operators. At the same time, if the play proves uneconomic to produce or drilling results disappoint, the low cost of acreage provides a degree of downside protection.
Post any articles or information you believe to be relative to the TMS.
Thanks for the reminder, John. Over GHS's almost six years we've been fortunate to count amongst our members a number of degreed geologists and reservoir engineers. Unfortunately they don't post much anymore. I can't recall when we've had so many "Armchair Geologists". Yes, 42,500 acres is a good reason to learn all you can regarding the geologic sciences and to cultivate friends in the industry. I hope you get some wells soon that confirm your "technical sweet spot" location.
Well excuse me. I thought this was primarily for everyone ( including the common man) to openly discuss these issues. Unfortunately, I have not seen a whole lot of technical data available on this site for the average guy, mineral owner types.
I would assume the majority of the Professional Geologists spend most of their (free time) over on sites similar to those such as the AAPG and other forums where true professionals can converse without dealing with all "us dummies."
Us dummies cannot learn anything unless we ask questions, discuss amongst ourselves or set forth answers that are wrong such that a true Professional like Jay might take the time and be kind enough and generous enough to set us straight on were we have veered off course.
I would also hope that the degreed Professional Geologists and Engineers would appreciate the fact that some laypersons do try to educate themselves in a manner that they can have somewhat of an intelligent dialogue and understanding of the more refined technical subjects that these professionals truly understand.
How can a lay person have any meaningful dialogue or understanding of what these professionals may share and discuss with you, if you do not understand the language or concepts pray tell?
FYI Bill Gates did not gradate from college with any degree, so I guess he did not know "Jack" about computers?
Imagine what he would have become had he got a degree in Computer Engineering or Programing etc.
Just saying my friend.
Why are your getting so riled up my friend? I try to be pleasant, helpful and sharing in an open dialogue setting amongst the "average man" I thought this site was about and included.
However, if confronted in what I consider an improper tone, I will explain myself.
~ ~ John
John, I'm not riled up. And I didn't call you a dummy. Nor am I suggesting that you or any GHS member should withhold their opinion. Interpretation of electric logs however is an opinion beyond the norm. And one where I think an occasional disclaimer is appropriate. Those of us who answer legal questions with which we have some professional experience but are not a lawyer often will state such or use the acronym IANAL, for "I Am Not A Lawyer".
I did not mean to imply you called me a dummy. I apologize if my writing was taken the wrong way.
Fortunately I am smart enough to know I am a dummy when it comes to being any real geologist, however, I have a thirst for knowledge and understanding in those matters and study many a document set forth by those that do know.
Anyway, I thought I had made it apparently clear to everyone that I am not any sort of real Geologist just an armchair geologist trying to keep up with what is going on. . I am going to have to come up with a cute acronym disclaimer.
How bout NAGGING Presentation. (Not A Genuine Geologist Interpretation No Good).
From now on I will title any of my stuff in that manner.
Common now, you gotta get a chuckle out of that one and give me an A for effort and creativity.
Have a good evening my friend. No harm taken, no harm done.
~ ~ John
NAGGING I like it LOL
Yes, a good chuckle. I like the acronym but I don't think your interpretations are "No Good". It's certainly not as funny but IANAG (I Am Not A Geologist) is more accurate. There is a world of information available for those with the desire to pursue it. You justly deserve your A.
I have a thirst for knowledge and understanding in those matters and study many a document set forth by those that do know.>>
I have a thirst for knowledge in this area as well which is why I come to this website. Thank you for all that you, Skip, Pirate, Shale Brew and others provide for those who wish to learn.
I for one consider J. Parker's geological comments a real bargain insofar as they pertains to something I know almost nothing about, as the comments are worth far more than I paid for them.
littleasy, I'm no company man. There all kinds of landmen including a few like myself who represent land/mineral owners. I care about the quality of discussion posts on all portions of the website. And I am responsible to some meaningful degree for convincing Keith to allow TMS-related groups on GoHaynesvilleShale.
Thank you for taking time to share your knowledge with us. I always look forward to your posts. It didn't take me long to know that you, indeed, know what you are talking about.
Most of what we learn in life is learned long after the ink has dried on any diploma. I can tell you have a passion for what you do. According to some pretty highly educated folks, if you spend at least 10,000 hours focused and learning about a particular subject, you are considered an expert. I'm quite sure, with all of your history in the oil and gas business, you have logged many more hours than that.
Thanks, again, for keeping us up to date on this play. I look forward to your future posts!
this board offers all folks, degreed industry professionals or not, the opportunity to learn, if we wish, from those who've spent the time to educate themselves as to/in the area(s) of learning or fact collection they've chosen to pursue.
imo, there's nothing that says a degree or degrees makes a person knowledgeable. (i say this with no small degree of deep, personal regret. and, with no pun intended in my later usage of the word 'degree'.)
and, sniping about one's educational credentials or lack thereof adds nothing to the advancement of knowledge or facts/information that, imo, is why we each/all are participating here.
i've observed here, by and large, at most all times civil and respectful discourse. but, the instances i've seen things spin off course have been when someone(s) has/have been accused of not having the proper credentials to back up their talk.
so, in the words of the late, great philosopher, mr. rodney king: 'can't we all just get along' as regards the goals and things we share here: the advancement of knowledge and facts inre: the shale play(s), the subject(s) of this forum.
i apologize if i've ruffled feathers with this screed; but i don't like to see when things are made personal when we're all here, again, imo, to advance knowledge/information/facts.
with all best intentions,