Replies to This Discussion

Permalink Reply by Tom Bennett on August 12, 2012 at 3:15

Thanks for the update and information D. St. Amant . This is very important news for Cass County. Tom Bennett.

Permalink Reply by rasputin on August 25, 2012 at 0:21

The News Release headline states "Texas following 30 days of oil production."   However the release goes on to report the results of only two 24 hour test periods, ie, 364 boed and 309 boed.  So, why did they say 30 days?

 

I ask this question by email to the company, but have had no reply.

 

Makes one very skeptical of the estimated ultimate recovery numbers in their 8May12.pdf:

 

http://www.pegasienergy.com/articles/Pegasi%20IR%20Presentation%208...

 

Do you know anyone in Tyler who might give me the straight story on this small operator?

 

 

Permalink Reply by Skip Peel - Mineral Consultant on August 25, 2012 at 3:34

Due to recovery of proppant and frac fluids in the early stages of flow back from horizontal wells with multiple stage fracture stimulation operators will take 24 hour tests periodically.  Production of hydrocarbons increase as flowback returns more frac fluids.  Most reports seem to indicate that recovery of frac fluids needs to reach ~60%  or greater before accurate flow rates can be established for hydrocarbons.  Since operators wish to give the best test results possible they will choose the best 24 hour test during that period, in this case thirty days.

Permalink Reply by BossierTex on August 26, 2012 at 1:30

Skip - What is your opinion on these bold EUR numbers within their Cornerstone Project, particularly the comparison with the Bakken shale? For those of use with leases or future leases, it is exciting news! Thanks for your input.

Permalink Reply by Skip Peel - Mineral Consultant on August 26, 2012 at 1:55

BT, EUR calculations are above my pay grade.  Bold projections are just that, projections.  And the flow rate is not a good indicator of future production without a decline curve model.  It is quite common for news releases to invoke a comparison to the latest, most popular play.  I tend to take such comparisons with a grain of salt.

Permalink Reply by dbob on August 27, 2012 at 7:00

There was a new W-2 filed with the RRC on August 24th showing a test date of 7/19 - Jet pump assisted production of 233 bbl oil/day.  reprot also suggests 4401 bbl of oil produced prior to that test.  that would be roughly 4401 bbls between July 2 and July 18, or about 275 bbl/day average. 

Permalink Reply by rasputin on August 27, 2012 at 20:54

Any idea as to how much their lease operating expense is?

Permalink Reply by dbob on August 28, 2012 at 1:34

No idea - probably high right now as they figure out the well.  Should be lower as they get it figured out.  

Regarding comparison to Bakken - Its premature, as they haven't repeated the success of this well yet, nor have they clearly communicated it would be economic.  

If the EUR is good/ at least modestly economic/ and its repeatable it will lead to a lot of development.  If it is hit and miss to develop the area the EUR needs to be excellent to make it worthwhile to develop right now.  

Permalink Reply by Dats Oil Brother on September 17, 2012 at 7:38

Pegasi recently announced a $4 million financing which will fund another well in the same area. Should be a lot more stages for this one. If it's successful, things should get hot in Cass county.

Permalink Reply by Cass County Gal on January 31, 2013 at 5:08

Have you guys heard anything new with this?  We have property in Cass County and a mineral lease with Pegasi.

Permalink Reply by Dats Oil Brother on February 2, 2013 at 7:19

I have been trying to find out what their plans are but they act like they are out of business. No return calls or e-mails. No news updates. I wonder what're they did with the 4 mill financing. Terrible job by this management.

Permalink Reply by Cass County Gal on February 4, 2013 at 6:53

Hmmmm....that's really weird.  I wonder what's going on?

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