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Permalink Reply by ALongview on February 5, 2013 at 16:38

This is also some potential activity in 2013 for the James Lime:

From Crimson Exploration just today: "In 2013, Crimson will continue to focus on its extensive inventory of high margin, low risk crude oil and liquids-rich projects in the Woodbine formation with a continuous rig program planned for 2013. Subject to capital availability, the company may also drill test wells in the liquids-rich James Lime formation in East Texas and/or the crude oil and liquids-rich Buda formation in Dimmit County, TX. The complete 2013 capital program is being finalized for approval by the Company's Board of Directors."

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Permalink Reply by Mike on February 7, 2013 at 8:02

If memory serves me, Crimson was a partner with Devon on Kardell 1.  I would think they would still be in on the unit and know what Devon knows.    They need to stop talking about it and start drilling.   

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Permalink Reply by GoRicky on April 13, 2013 at 15:54

Amen, Mike.  I've seen San Augustine flat on its back FOR MANY YEARS.  Right now (and I believe for at least another couple of years) that gas will be $ 4 - 5 Per MMCFG and oil will be $80 - $120.  Just like some managers can say "well, they're passing out just enough money to keep the ships afloat & keep most prices flat, except commodity prices.

If commodities run within the above range, there will be many more wells drilled in S.A. Co.  I would just like someone (with more time and eyesight than I have left).  To be dogging the horizontal James Lime wells that are producing oil.  I'm religously going to look at activity in Houston/Madison Counties & don't have the time to (head East) ........... 

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Permalink Reply by dbob on April 13, 2013 at 16:46

GoRicky -

I tend to follow the completion reports, but not keep up with production on particular wells.  Which company or wells are of most interest to you?

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Permalink Reply by ALongview on April 13, 2013 at 18:09

I have read that Devon would be drilling more in the James Lime but have yet to figure out a transportation/treatment situation. What would need to be in place for them to transport, treat, or whatever they need to do to maximize the sale of this condensate? Is it treatment facilities and pipelines or just pipelines? Thanks for any insight.

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Permalink Reply by adubu on April 20, 2013 at 6:51

they simply flow the condensate in storage tanks at well site then periodic truck it out to market or to nearest contracted  pipeline when tanks are near full.

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Permalink Reply by ALongview on April 20, 2013 at 7:32

I listened to some of the IPAA conference calls this last week and was surprised to hear that Forestar has an agreement with Devon that covers 22,000 acres in San Augustine and Sabine County for the James Lime and they were actively leasing still.  Also, in the Crimson call they stated that they were working with Devon on how best to build out the James Lime.  The coming 12-18 months could get interesting.

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Permalink Reply by Paul Johnson on April 30, 2013 at 14:49

http://finance.yahoo.com/news/contango-oil-gas-crimson-exploration-...

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Permalink Reply by ALongview on May 1, 2013 at 4:26

Thanks Paul.  Looks like they are going to drill some in the James Lime in 2013-2014.

Permalink Reply by Mike on April 22, 2013 at 11:42

Thanks for the info on Forestar and Crimson.  Did anyone provide an updated map of the liquids play?

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Permalink Reply by ALongview on April 23, 2013 at 9:29

Not of the entire area. Crimson posted on their latest presentation the units in San Augustine County that they believe are in the play. Forestar has more acreage leased in Sabine County and Devon has a good bit of acreage in both Counties.

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Permalink Reply by ALongview on May 1, 2013 at 13:08

This from the merger conference call:

I'm noticing on Slide 7, James Lime spending in 2014 is up significantly from 2013. Is that a function of having the wherewithal to go after that a little more? Is that a function of gas prices have gone up? Because I thought that was a pretty interesting play and Devon had gone after it but there was not a lot of infrastructure down there, so they kind of walked away, I believe, from it. So just tell me what you're thinking on the James Lime here going forward, going from $5 million to $20 million.

Allan D. Keel - Chief Executive Officer, President and DirectorYes, Steve, it's Allan. Devon actually -- they've actually increased their activity level out there over the last several months, so they've actually drilled at least 10 or 12 wells there with increasing success with -- as they get a little bit more efficiencies out there. As we've mentioned before, we went on an infrastructure solution out there and we think that some of that is taking place now, so we are in a position now with this combination to devote some capital to that play and we really think it's a great opportunity for us to pursue. So yes, we are going to invest capital out there this year, as well as ramping that up as we go forward

Devon's last reported well has three month production of 19400 bbl oil/condensate and 188mmcf gas.  Not too bad.  I do believe that with Devon, Contango/Crimson, and Forestar all invloved that they have made some sort of deal to figure out an infrastructure solution and they will be drilling over the next 18 months in a much more significant way than they are currently.  People in San Augustine and Sabine County who kept and were able to lease their shallow formations may be rewarded for doing so.

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