Austin Chalk

All things about Austin Chalk in Louisiana: Horizontal drilling, improved seismic testing, and liner casing are offering hope for the deep minerals in the Austin Chalk which runs from Austin, Texas through parts of Louisiana to Biloxi Mississippi.

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  • bulldog

    Does anyone know when Anadarko is planning on bringing in another rig to develop their 150,000 ac leasehold in their eastern AC acreage?
  • littleasy

    bulldog,

     

    One rig per 150,000 ac?  That's humor or sarcasm, right.

  • Joe Aldridge

    They are drilling wells on very large units. But not quite that large.
  • bulldog

    Just seems like they are slow playing their acreage when each well is taking 60-90 days to drill and complete. Even with 1500 ac units it will take a lot of wells to hold their enormous leasehold by production. They have to have several rigs headed towards the AC.
  • Craig Wascom

    In defense of bulldog I think it is a good question maybe just not worded very well. Anadarko does seem to be slow the spud their AC wells. The question that comes to my mind are they slow because they are bringing in a new type of rig that there may be a shortage of i.e. Devons 35 well site? I have seen the access roads at Lacour and the seem much larger than normal.
  • littleasy

    Yes bulldog, it would take 20 rigs drilling 24/7 for 3 yrs to drill 150,000 ac into 640 ac units.  5 yr leases would make the project more manageable.  I'm sure the economics will drive the production.
  • Joe Aldridge

    I think as soon as they get rigs available they are moving them in. Right now I understand there is a rig shortage. To drill the 150,000 acres it will only take 100 wells at 1500 acres per unit. That can be done with 5 rigs or less.
  • littleasy

    I didn't mean to suggest that bulldog's comment was not appropriate.  I thought it was just his good sense of humor.  They [APC] seem to be leasing to try and establish the boundary of some geological feature that they may have identified.  Just a guess on my part?
  • Joe Aldridge

    littleasy, I think the number is somewhere between your figure and my figure. Nelson/Pryme drilled this last well in 90 days or so. It will probably take more than 5 rigs but less than 20.
  • Craig Wascom

    Makes sense. Can I safely assume that they have 3D survey of the area?
  • Joe Aldridge

    Hey guys, This is almost like IMing.
  • Joe Aldridge

    Craig, Anadarko's geologist stated that the AC is every where. It just depends on whether you find fractures. Pryme thinks 3D seismic is important. I don't.
  • Craig Wascom

    I saw your earlier comment from the meeting with the geologist. Pretty encouraging when you are in the target area, I was just wondering how much of their enthusiasm was based on hard evidence.
  • Joe Aldridge

    The hard evidence is drilling data. Seismic is "soft" data. It will show the top and bottom of the formation. It will also show traps and high  points in regular sand formations but I'm not sure about indicating fractured areas in formations like chalk.
  • Craig Wascom

    Got it. Just need to wait for drilling and production reports. I guess I was hoping they had a crystal ball.
  • Joe Aldridge

    Craig,

    You just have to know that the formation is here and until a well is drilled there is no way to know for sure what production is going to look like. The State of Louisiana will not allow seismic to be entered as testimony in DNR proceedings. Its too subjective to be relied on for real information. Only actual drilling data tells what is really there. I think in the case of Pryme it looks good to keep referring to the 3D seismic for their shareholders. They seem to think that the  thinning of the formation is "good". I don't think that has anything to do with the actual prospects of production in the AC. The fact that the formation is located on the shelf is the important thing. The shelf in this case creates a flexure (sp?) in the formations that flow over it. This creates an area that should be very fractured. So if you are close to the shelf that is GOOD!!!!

  • Craig Wascom

    Amelia Resources adds Austin Chalk area with lots of good maps. I am  excited to see more information becoming available as this play moves east. http://www.ameliaresources.com/tuscaloosa-trend.htm

  • littleasy

    Hydrocarbonite, high and low resistivity have been discussed in terms of the TMS boundary area.  I am unaware of this being discussed in terms of the AC.
  • Hydrocarbonite

    Any info on Cortez oil company from anyone?
  • bulldog

    Does anyone know which well Anadarko is moving to next? Lacour 42 or 43?
  • Abington

    From the Leesville Daily Leader this morning:

    According to the Louisiana Department of Natural Resources, Office of Conservation, two permits to drill wells in Vernon Parish have been issued this month, both to Anadarko E & P Company LP. The permits are issued for wells located in Districts 3 and 4.

    Anadarko has a total of eight wells in the parish, two of which are actively producing.
    Last spring, the Vernon Parish Policy Jury revised two ordinances in anticipation of increased drilling activity in the parish.
    In March, the jury passed an ordinance revision concerning permits for pipeline crossings; dredging; and oil, gas and mineral exploration and production. The ordinance now requires driveways leading to and from oil and gas well sites to be paved. In April, the jury voted to change an ordinance to require oil and gas companies using parish roads for heavy hauling to surface the roads to certain specifications determined by the parish road supervisor.
The intent of both changes is to prevent damage to roads. Parish Road Manager Carl Thompson and Secretary/Tresurer Rhonda Plummer have both been communicating with northern parishes already dealing with an influx of oil and gas exploration.
    Fifty to 70 natural gas wells are expected to be drilled in the near future to access natural gas in the Burr Ferry area, according to a landman who spoke only on condition of anonymity. At least three wells have already been drilled within the last year to access natural gas which lies in the Austin Chalk, a formation that sweeps through Texas, Central Louisiana and Mississippi. 
In fact, the Vernon Parish Clerk of Courts has seen an increase since the beginning of the year of oil and gas landmen and abstractors researching deeds and acreage in western Vernon Parish, especially the Burr Ferry, Knight and Evans communities.
Swift Energy Operating LLC also has two active wells in the Burr Ferry South field, though they were permitted earlier. The same company has nine actively producing wells in the Master's Creek field, which is also a part of the Austin Chalk and also partially located in Vernon Parish.
The Master's Creek field has adjacent southern corners in Vernon Parish and Rapides Parish with a slight overlap into Allen Parish. The Master's Creek field has been producing since the 1990's.


    http://www.leesvilledailyleader.com/features/x1252552411/Anadarko-r...

  • Craig Wascom

    Lacour 43 has spud
  • Abington

    As we wait for word on the flow test of the second Bayou Jack well in Avoyelles, we notice an increase in the number of land men in the Avoyelles Courthouse. Some are even beginning to rent space outside of the courthouse to work privately.  Still not as crowded as the Desoto courthouse was, but it is the most activity ever seen in Avoyelles. Leases range from 200 in the northern part of the parish to 350 in the south, with 20 percent royalty.

    So my question...

    Can the increase in number of land men in the last few days be a sign that the flow testing is going well? Or just coincidence?

  • Joe Aldridge

    Abington,

    Thanks for the report on the leasing. My guess is that its just coincidence. I think someone is anticipating something though.

  • Craig Wascom

    I don't think there are many coincidences in the oil business just a lot of secrecy. Too much money involved.
  • Skip Peel - Mineral Consultant

    Craig, much of the leasehold in the Haynesville Play is a coincidence.  Only Chesapeake and EnCana have units and wells indicating a pursuit of the Haynesville Shale prior to the public announcement (dating back to '06) by Chesapeake in the Spring of '08.  Numerous companies including some very well known ones like Petrohawk were unaware of the developing play until about that time.  They and other operators had legacy leasehold and were adding acreage targeting the Cotton Valley.  Those that happened by chance to be in productive areas were quite fortunate.  Nice coincidence.  Not all were so fortunate.  Devon for example.
  • Craig Wascom

    Thanks Skip I can see how legacy positions in an explosive play could be a very nice coincidence.
  • Skip Peel - Mineral Consultant

    Only if they turn out to be in a productive area.  The other side of that coin are several companies that went bankrupt when their Haynesville Shale leasehold was revealed to be in a non-economic location and they could not generate funding for their Cotton Valley prospects.  Laymen tend to  embrace  perceptions of industry infallibility when such is not the case.  The industry constantly makes mistakes.  The successful companies just make fewer and have the ability to overcome them.  It is a high risk, high reward game.
  • Abington

    Thanks for all of your replies. Skip, your last comment is a good story for land owners to not be so greedy. There are always a few big acreage people that seem to hold up us smaller position guys from getting our little share. Of course it can work both ways. But when the land man comes knocking, land owners need to be partners not stalemates. Overall it does seem to be a good system. And with internet sites like this, there is a bit less secrecy as more is on the table for all to see - good for fairness for all sides.
  • Skip Peel - Mineral Consultant

    Thanks, A.
  • littleasy

    Yes, I agree but not everyone is as knowledgeable as Skip Peel.  I read with interest his suggestions on leasing for landowners in the Brown Dense prospect.  Honesty is a radical act these days.
  • Skip Peel - Mineral Consultant

    Thanks, littleasy.  I work for land/mineral owners, not for the industry.  There really are landmen that do so, we are just relatively few in number.  And being honest on GHS oft times puts me in the middle between the two.  I take the industry to task where I think they are wrong but I don't hesitate to defend them from being demonized by mineral owners over misconceptions.  Entering into a lease agreement is an important business decision.  And a good lease gives both sides what they need to exploit the asset.  And reap the rewards.
  • William C. Morrison

    Skip, we used a lawyer this  time around.  No increase in royalties or payment but the ground rules are better.  In the past we never used anyone, just did the deal.  Almost all of the leases did not go beyond a year, except one and that was a low ball lease.  The folks ended selling 3/16s of the royalty for big bucks and a year later the well went dry, or sanded over but quit producing.  No rework in those days.  So in the end, the family did okay,  We had leased for $25 an acre and our neighbors got $2,500 per acre.  The up side is that the exploration companies keep coming back to us and that is a good thing,
  • Skip Peel - Mineral Consultant

    William, you have been fortunate.  I hope the lawyer you used was an experienced O&G attorney.  I always encourage mineral owners to do their homework and get referrals.  Mineral law is quite complex and requires an attorney with experience.
  • Steve

    Is HPS Oil and Gas leasing for Anadarko? They are picking up leases in W. Feliciana right now.
  • littleasy

    Steve,

    Do you have any other information?

  • Two Dogs, Pirate

    HPS is Gary Salmon out of Lafayette.
  • Steve

    They are working the area around St. Francisville (near Camp Marydale at least) and are leasing small acreage too. Offering $200 per acres bonus on 3 year lease with 2 year option and 1/5 royalty, so it sounds like to me they are not just brokers speculating. Anadarko's name was mentioned, but, I did not speak to the agent directly so I can't verify the context in which Anadarko was mentioned. I heard earlier that Anadarko was moving east along the shelf. I am hoping this is the case.
  • Steve

    Isn't Gary Salmon associated with Charleston Energy? They have been in and out of W. Fel. leasing since 2008. Could they be leasing for Anadarko now? Could the landowners be getting misleading information?

  • Two Dogs, Pirate

    He uses several different company names when buying leases.
  • littleasy

    I don't know who he represents, but have we forgot about the resistive TMS area in the Felicianas?
  • littleasy

    GARY L. SALMON is a registered agent for both Basin Properties and Charleston Energy.  No info for HPS Oil and Gas.
  • Joe Aldridge

    Hey guys,

    There are two wells being planned that I have been told of by land owners in the area. One is in the North corner of EBR/EF on the River at Fancy Point. The other is in the area of Bayou Sara in EF. Both areas are in the State Lease offering that opens tomorrow. I think both sites will be staked in the near future. My understanding is both are Austin Chalk not TMS.

  • Two Dogs, Pirate

    Gary Salmon is President of HPS Oil & Gas Properties, Inc.

  • Steve

     Joe,

    EF or WF?

  • littleasy

    Bayou Sara and Fancy Point Towhead are in/adjacent to West Feliciana.
  • Joe Aldridge

    oops, you are correct it should be WF. Sorry about that.
  • Steve

    Wouldn't a Bayou Sara or Fancy Point Towhead AC well be the 1st AC wells above the Lower Cretaceous Shelf margin?
  • littleasy

    Bayou Sara - essentially on LK shelf edge or slightly South
    Fancy Point Towhead - South by approx. 4 mi

    JJA Miss. Bridge is roughly equidistant between the two areas.
  • Steve

    Thanks . Do you know if the area north of the shelf is also prospective for the AC? I notice that Anadarko's wells so far are all south of the shelf.