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Permalink Reply by Two Dogs, Pirate on October 10, 2013 at 15:19

May be snake oil but it is one of the few plays in Louisiana that Landmen  are working on. I understand  that it goes from the coast North into St Landry Parish covering 4 or 5 parishes.

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Permalink Reply by David on October 10, 2013 at 15:49

I have an interest in the Highlander Well in St. Martin that McMoran is drilling. They are currently below 26,000 feet. And if they find any commercial production possibilites here, expect to se large amounts of money begin to flow into Ultradeep wells. BTW, the well cost is roughly $100,000,000.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

Interesting discussion board on this an the Lineham Creek well can be read here:

http://www.investorvillage.com/smbd.asp?mb=1520&pt=m

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Permalink Reply by kittycatmama on October 12, 2013 at 3:45

I am watching this closely too. We are investors in FCX which went back into the oil and gas business as a divestiture last yr. The Davy Jones success will send this stock sky high.

 

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Permalink Reply by Joe Aldridge on October 10, 2013 at 23:21

Interesting post TD,

Even at 100,000,000 its a bargain. He probably has 5 to 10,000,000 coming in from every company under the sun or is it under Heaven. He may even make a profit on the sale of the info alone.

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Permalink Reply by olddog573 on October 11, 2013 at 3:57

Whether this turns out to be true or not one thing is for sure, Louisiana is blessed with natural resources!  Glad to be apart of it.

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Permalink Reply by CB on October 11, 2013 at 7:50

It's not going to work. Pipe dream.

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Permalink Reply by jim weyland on October 11, 2013 at 10:12

there's "cutting edge" technology; imo, an example being the design/construction of large diameter steel catenary risers and their associated flex joints used with deepwater floaters. to me, (let's stipulate that i'm no engineer) it's real larry lightbulb stuff.

on the other hand, there's the "bleeding edge" of technology. imo, that's pretty much the case in everything they do in their pre/sub salt program, other than what's served up in the galley. an example being the limits/bounds in/of our current knowledge of relevant material sciences; not to mention, equipment fabrication. again, imo, they're not just pushing the limits of the envelope. in cases, they're having to redesign the envelope.

for anyone who finds the prospect of winning the powerball lottery so very, very likely as to not provide an adequate gambler's sense of anticipation, there's a new ORRI trust set up by FCX. The units trade under symbol "GULTU". the trust's asset(s) consists of a 5% override on FCX's interests in 20 enumerated deep prospects. as of today, per the trustee, there are no proven or probable reserves associated with any of the 20 prospects. now, i'm not a mathematician, but to me this suggests the present NPV of the trust = squat.

making GULTU seem to me, to be pretty much a gambler's dream date.

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Permalink Reply by 1kw6x71km1v37 on October 12, 2013 at 13:35

Obamacare stands a better chance of reaching payout.

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Permalink Reply by kittycatmama on October 13, 2013 at 4:58

I don't think the Davy Jones is about pay out. I think it is about technology to reach those depths. That is where the value will be for FCX--development of the technology. Jim Bob has been a risk taker all of his life and most of those risks have paid off. I always look at a person's track record.

 

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Permalink Reply by jim weyland on October 13, 2013 at 7:37

i think it's clear the stuff is there. as you say, now, it's all about the cost and technological issues needing to solved, of which there are many. 

as an aside, i worked for one of the WIOs participating in the XOM operated Blackbeard, West. i've seen tight holes before, but nothing like this. the only time in my entire career where i was asked to leave the morning drilling meetings was on those days when they got fresh dope from xom inre: blackbeard.

i wasn't a geoprofessional, much less one associated with the project, so i didn't take any offence. after all they kicked out all non-project related personnel including geologists/engineers

but i'm just saying, never before or after. all in all, it reminded me of the cone/dome of silence 'gag' they used in the old tv show, get smart.

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Permalink Reply by Craig Cooper on October 13, 2013 at 11:38

Maybe uneconomic but probably not 'dry'. :-)

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Permalink Reply by Gatrpaw on October 13, 2013 at 11:18

If I remember my geology correctly, below the salt lies the Morehouse Shale and the Eagle Mills. Many years ago it was something of a "pipe dream" to think that wells could be produced from these formations due to the depth, temps and pressures that could possibly be encountered. Much of these concerns have now been overcome with the technologies developed while drilling and completing of wells in the Jurassic zone which is just above the salt dome. I have been told of a few test wells being drilled into the Morehouse years ago that showed potential but wasn't pursued at the time because it was to hot to handle with the equipment available back then. 

Even if this well turns out dry. It means one well and not the entire Paleozoics formations below the salt will be bad. What will be learned from this one well may lead to something in the future. After all....Haynesville, Barnett, Eagleford wells that are making thousands of barrels of oil a day and millions of cubic feet of gas per day where once the same type wells oil & gas professionals, land men and the such were saying would never produce or be worth a red cent.

 

 

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