Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 25, 2019 at 12:48

Organization Id	Organization Name
V030	VELANDERA ENERGY PARTNERS LLC

 

Cnt	Well Serial	Well Name	Well Num	Status	Class	Class Type	API Number	Org ID	Field ID	Permit Date	Sec-Town-Rng	Parish
1	243882	L SMK RA SUA;GARRETT 7-23-5 H	001	35			17027224820000	V030	5964	27-SEP-11	007-23N-05W	14		20200
2	244319	L SMK RA SUA;BML PROP 31-22-1H	001	10			17111256220000	V030	7145	18-JAN-12	031-22N-01W	56		19892
3	244945	JOHNSON 21	001	35			17111256240000	V030	7145	25-MAY-12	021-22N-01W	56		10398
4	244952	L SMK RA SUG;DEAN 31-22-1	001	10			17111256250000	V030	7145	29-MAY-12	031-22N-01E	56		10437
5	245093	L SMK RA SUA;DOLES 30-22-1 H	001-ALT	10			17111256260000	V030	7145	27-JUN-12	030-22N-01W	56		20008
6	245963	L SMK RA SUG;DEAN 31-22-1	002-ALT	33			17111256280000	V030	7145	08-FEB-13	031-22N-01E	56		14100
7	246229	L SMK RA SUA;SHARP 22-22-1	001	10			17111256310000	V030	8936	04-APR-13	022-22N-01E	56		9900
8	246894	L SMK RA SUA;HOLLIS 27-22-3	001	31			17111256230000	V030	6922	22-AUG-13	027-22N-03W	56		11429
9	247010	L SMK RA SUB;PLUM CREEK13-23-2	001	35			17111256300000	V030	0689	20-SEP-13	013-23N-02W	56		9476
10	247320	L SMK RA SUA;MILSTEAD 15-22-1	001-ALT	35			17111256340000	V030	8936	02-DEC-13	015-22N-01E	56		10000
11	247476	L SMK RA SUC;BENSON 27-22-1	001	10			17111256350000	V030	8936	10-JAN-14	027-22N-01E	56		10000
12	247477	L SMK RA SUB;PLUM CREEK23-22-1	001	31			17111256360000	V030	8936	10-JAN-14	023-22N-01E	56		10000
13	250119	L SMK RA SUE;BALLARD 20-22-1	001	10			17111256410000	V030	8936	14-MAR-17	020-22N-01E	56		10662

Permalink Reply by Rock Man on January 25, 2019 at 13:01

Nice to see this group going all in on the Smackover Brown Dense. Their head engineer (Peter Oyowole) is ex BP and now president of ProLine (must be holding joint positions). I see this as an alliance of at least two groups to try to monetize this play concept.

Permalink Reply by Ben Barnhill on January 25, 2019 at 13:50

Wow, this is some great news. Though trying not to get my hopes up too high like we have several times in the past.

Permalink Reply by JMG on January 25, 2019 at 16:17

I really do hope they can turn this into something more than SWN did. I feel like SWN bet the farm and tied most of their capital up in leasing thinking this would be the next BIG BASIN before getting proven results across what they thought was the economic fairway. LSBD does not have the big consistent economic footprint like other areas that gained national attention but, IMO it does have very good hotspots that hopefully were picked up on 3-D seismic that would resemble isolated areas similar to the traditional Smackover formation that are economical. From what I've heard or read this would be ancient reefs or lagoonal areas(think about a small lake)  but have proven to be predominately very high in H2S concentrations so there is the added cost of stripping the H2S on site or taking a very big hit from midstream companies and letting them deal with it.

Permalink Reply by Rock Man on January 26, 2019 at 7:14

It will be interesting to see if Velandera only focuses on the "unconventional" Brown Dense (Lower Smackover) source rock play or extends its efforts into the more traditional Upper Smackover play (not source rock but traditional P&P reservoirs). This is where the 3D could come in handy. Plus the 3D - if it is of high enough quality - may be used to rock property mapping in the Brown Dense (e.g. most brittle, organic rich, etc.).

There is no doubt that the Brown Dense has a lot of O&G associated with it - it is the primary Jurassic source rock in the ArkLaTex and has been the main source rock for the Smackover production in that area (as well as some shallower formations). Key like in any "unconventional play is "cracking the code" and figuring out which areas (if any) at best to pursue for horizontal drilling and stimulation.

Side note on Smackover and H2S - the presence and variability of H2S in the Smackover is an interesting situation. It can range from 90+% (some areas in E Tx) to almost zero depending where you are in the trend.

Back in the 90's when sulfur prices were decent (e.g. over $30 per ton), the gas processing plants would have large mounds of sulfur ready to go into tank cars for sale as a by product of stripping out the NGL's from the Smackover gas stream.

And sometimes other inert gas can be prolific in the Smackover - in E Tx (Aker Field), the Smackover gas stream is composed of Methane and nitrogen (up to 30%).

Difficult to explain these gas quality anomalies.

Permalink Reply by Skip Peel - Mineral Consultant on January 26, 2019 at 7:28

Of the six producing wells listed (Status 10), 2 are horizontal completions and 4 are vertical completions.  The Brown Dense discovery well was a vertical completion with cumulative oil production of 131,000 barrels.

Permalink Reply by Rock Man on January 26, 2019 at 13:16

Attached is some info from Drilling Info on some of the Velandera Smk Brown Dense operated wells. As in any play - and unconventional plays especially - there is a lot of variability in the subsurface that impacts well results. Just based on the gas to oil ratios from cum production numbers, there is a bit swing in GOR and then in turn economics. And as the map shows, these wells are spread out through this Parish - where is the sweet spot for best EUR / economics/

The answer is in the data. Hopefully Velandera has all the technical info (core, logs, analyses) and operational info (drilling reports, frac reports, etc) to try to put together the puzzle to determine where to best exploit this known O&G resource.

Attachments:

• Velandera L Smk Production.pdf, 237 KB
• Prod graphs.pdf, 171 KB
• Velandera Prod List.pdf, 5 KB

Permalink Reply by Bradley McWilliams on January 26, 2019 at 7:51

I can recall some local SWN employees saying the company had a "can't miss" air about it after the home run of the F'ville.  Almost as though some believed they were above making a wrong guess...

Permalink Reply by Rock Man on January 26, 2019 at 13:11

SWN did crush it on the Fayetteville and then tried to find the next unconventional play in many different areas - with minimal success. Their essentially avoiding the Permian in the early part of that "shale" development was probably a mistake but - as I understand it - they were looking for "shale plays" in areas that were not in the mainstream. And these did not pan out.

SWN has a GREAT staff for some time - but retirements, layoffs, and people leaving to find different opportunities killed their main resource, i.e. great technical staff.

Permalink Reply by Bradley McWilliams on January 27, 2019 at 1:51

I do believe they were looking for "not in the mainstream" plays.  The F'ville was just that, and they were hoping to replicate it.  The LSBD was thought to carry on in that, but didn't work to their expectation.  They also tried for the DJ basin in north west CO, which I think had limited success, they also drilled some really deep post holes around Colorado Springs, also in Utah, and in Montana, as I recall.  Don't even need to bring up the Canadian exercise in futility...

As for personnel, I used the phrase on a different thread of their "machine".  Certainly the folks they had in place to steer that machine was impressive. Mostly all gone now.  Their main field office is a ghost town, saw the last of the SWN Drilling Co. rigs being moved out just last week.

Permalink Reply by Bradley McWilliams on January 26, 2019 at 2:41

They've got a pretty nice web site.  It list SWN as a "strategic partner".  Seems SWN is a minority interest holder in it still?  Before everyone was laid off in the F'ville last June I was told that deal was done.  Took a while to become public.  Hoping for the best for all involved.

Permalink Reply by Rock Man on January 26, 2019 at 7:02

The one manager of Velandera is ex-SWN. One has to figure that the G&A / Overhead for this new group will be much lower than SWN's. Various "strategic alliances" may also come into play here to optimize results (e.g. the ProLine Engineering tie).

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