Wednesday, January 3, 2018

Amelia Resources LLC Announces the Sale of 85,000 Net Acres in the Louisiana Austin Chalk Play


https://www.businesswire.com/news/home/20180103006307/en/Amelia-Resources-LLC-Announces-Sale-85000-Net


January 03, 2018 05:00 PM Central Standard Time
NEW ORLEANS--()--Amelia Resources LLC announces the sale of 85,000 net acres in the Louisiana Austin Chalk play.


Amelia Resources announced today that it has sold 85,000 net acres of newly acquired leases in the Louisiana Austin Chalk play to an undisclosed large U.S.-based operator for $87 million.

Amelia's President, Kirk Barrell, said, "With the rapid emergence of this exciting new play, this focused package of leases presents a large new player an excellent acreage foundation to build upon. Frac design improvements in the Austin Chalk of Texas along with very high initial flow rates are bringing more attention to this play across both Texas and Louisiana. We are excited to deliver an operator to the play with significant experience in drilling and completing these same reservoirs in Texas.”

With 27 years of experience across the Tuscaloosa Trend, Amelia Resources has evaluated over 2,000 wells in the Austin Chalk across Texas and Louisiana. Utilizing a diverse dataset of well logs, geochemistry, seismic, and petrophysics, the company has confirmed and defined the most economically attractive areas of the play.

Amelia’s buyer has acquired this large acreage block in the updip, normally pressured region of the play. Barrell stated, "Our acreage block is geologically focused targeting a shallower, normally pressured, oil-rich, porous reservoir across unfaulted monoclinal dip. With the Tuscaloosa Marine Shale (TMS) occurring 700 feet below the Austin Chalk, the updip region of the play presents a potential ‘stack play’ opportunity.”  The company plans to debut a second large acreage package at the NAPE Summit in Houston, February 5–9, 2018.

Amelia Resources LLC is a privately held exploration and production company. The company generates drilling prospects and is actively engaged in several projects across the onshore Gulf Coast. Amelia was founded in 2003 by Kirk Barrell and has offices in New Orleans and St. Francisville, Louisiana. The company leverages its 27 years of geological and geophysical experience to obtain strategic positions in drilling projects. Updates on the Austin Chalk and TMS projects are provided by the company at www.tuscaloosatrend.blogspot.com.
Media Contact:
Kirk A. Barrell                
281-798-6741
5500 Prytania Street, #416, New Orleans, LA 70115
 



CAUTIONARY STATEMENT: This press release contains certain forward-looking statements regarding various oil and gas discoveries, oil and gas exploration, development and production activities, anticipated and potential production and flow rates and the economic potential of properties. Accuracy of these forward-looking statements depends on assumptions about events that change over time and is thus susceptible to periodic change based on actual experience and new developments. Amelia Resources LLC cautions readers that it assumes no obligation to update or publicly release any revisions to the forward-looking statements in this press release and, except to the extent required by applicable law, does not intend to update or otherwise revise these statements more frequently than quarterly. Important factors that might cause future results to differ from these forward-looking statements include adverse conditions such as high temperature and pressure that could lead to mechanical failures or increased costs, variations in the market prices of oil and natural gas, drilling results, unanticipated fluctuations in flow rates of producing wells, oil and natural gas reserves expectations, the ability to satisfy future cash obligations and environmental costs, and other general exploration and development risks and hazards.





Thursday, November 9, 2017

EOG Provides Update on 3D Shoot

The Avoyelles Today website provided details on a meeting EOG held in Bunkie regarding their 3D seismic acquisition plans.
Key points to note:

  • the survey is confirmed to be 270 square miles.  That is a large survey.
  • They've expanded the survey to include some lands in Evangeline Parish.
  • Dawson Geophysical will be the contractor performing the acquisition.
  • The acquisition has commenced and completion is estimated to be July, 2018.
The article:

https://www.avoyellestoday.com/news/oilgas-drillers-south-avoyelles-explain-testing-process

The fact that EOG is investing in such a large survey is very positive.  It indicates their belief in the play and that they plan to be in the area for some time. As stated in a prior post, they likely will drill 4-6 wells across their acreage block in parallel with the shoot. Once the shoot is complete, processed, and interpreted, they can incorporate data from their new wells.
Stay tuned.

Tuesday, November 7, 2017

EOG Eagles Ranch 14H-1 - New Tests

Some additional tests have been released on SONRIS for the Eagles Ranch well. All three tests display quite a range in rates for oil, gas, and water.  The obvious question is, "which one should I believe?".  Not to "beat a dead horse", but the initial tests aren't that significant.....unless you're a "flipper" that just outbid competitors on some hot acreage.  If you have to have a number, I would recommend averaging the three. Note the choke size on each. 

The consistencies to note are the GOR and water/oil ratio.  The water might alarm some, but note in my second table the cumulative production for the Austin Chalk fields on trend to the west.  The ratio in the Eagles Ranch is lower than all five fields. 



Wednesday, November 1, 2017

Amelia Resources Opens Office In St. Francisville


Amelia Resources LLC opened an office in St. Francisville, Louisiana today. The company is actively acquiring acreage in the Austin Chalk trend.

Landowners interested in obtaining a lease should contact the company.

CLICK HERE



Wednesday, October 11, 2017

EOG Eagles Ranch 14H-1 - Initial Potential

An official initial potential ("IP") has been released on SONRIS today for the well.

COMPLETED 9/11/17 AS A OIL WELL IN THE AUSC RB SUB RES;PM F; 1120 BOPD; 1157 MCFD; 1506 CP; 64/64 CK; 2947 BWPD; 1033 GOR; 43 GRVTY;PERFS 16275-20550' (ST: 10)

That means 1,120 barrels of oil, 1157 thousand cubic feet of gas, and 2947 barrels of water over a 24 hour period. The gas/oil ratio is 1033 with 43 API gravity oil.  The well is flowing naturally from 4275' of horizontal perforations.

My phone has been ringing all day. So here are the most frequent questions with my answers:

1) Do you believe these numbers?
The state allows a lot of leeway with regards to how an operator determines the initial potential. So these data are very likely accurate for some point during the flowback. That doesn't mean that it represents the best rate nor does it represent the well after it completed full flowback from the frac job.  Operators tend to release smaller rates when they are still leasing. I hear that EOG is wrapping up their lease acquisition.  Flippers tend to buy based on the rumors.

2) Doesn't 64/64 represent a full open choke?
Yes. This is not the typical choke that would be used during long term production. Many believe that sustained open choke can damage the reservoir.

3) Isn't that a lot of water production?
Yes, but the Austin Chalk always produces a lot of water and some of this could still be flowback water. Speculators start chasing SWD permits!

4) What do you think of the mix of oil versus gas?
This GOR is typical for the area. The GOR in six months will be much more telling

5) Are you happy with this result?
As stated prior, the IP isn't very significant. The production rate, GOR, pressure, and water production in 6-12 months is much more important.

6) Should I keep buying leases next to EOG?
That's your call. What does the geology tell you to do?

7) I heard that lease prices are skyrocketing?
Not exactly. Proximity to the well and the rumored initial rates are driving some interesting transactions.

8) How does this well compare to EOG's well in Texas?
See answer #5

9) 4275' of perforations seems short compared to what I hear in other plays?
EOG in other plays tends to not drill really long laterals. I assume that they'll be conservative on their first set of wells.

10) Where should I lease?
I wish I could tell you, but I would have to.....

Tuesday, October 3, 2017

EOG's Austin Chalk Core Focus Area

EOG's project strategy is starting to become apparent. With ~130,000 acres filed of record in the courthouse and an additional 70,000 possibly leased, the map is starting to tell a story.  They have acquired acreage on trend and east of here but it's not as contiguous.

The map below presents a general outline of EOG's largest contiguous block in yellow.  They have filed some tracts as 3D seismic permits (orange).  The dashed line outlining the 3D permits represents 238 square miles.  Based on the permits filed, I would assume that the 3D will be at least 150 square miles.  The Eagles Ranch 14H-1 falls within the estimated 3D outline.  3D seismic will be very useful due to the very complex geology.

Their geological theories are also becoming apparent. Their lease block consistently terminates on the west side bounded by a prominent salt ridge and three salt domes. Their northern boundary is clearly defined by the Edwards Shelf Edge.  The depth to reach the Austin Chalk increases more rapidly south of the shelf edge.  Formation pressure increases in a linear fashion also.  Their southern boundary is defined by depth of the formation.

Their theme appears to be high pressure, gas/oil mix, faulted, and porous.  My guess is that they will drill a few "pilot" wells in parallel with the 3D acquisition. This would give them some additional data on the formation and be prepared for a full scale development once the 3D is acquired, processed, and interpreted.  Stay tuned for an initial potential on the Eagles Ranch 14H-1.




Sunday, October 1, 2017

EOG Resources Takes Over the Eagles Ranch 14H-1

On SONRIS, EOG is now listed as the operator of the Eagles Ranch 14H-1. No surprises there.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2?p_wsn=250209

Also note that the well is now a unit well (AUS C RB SUB).


An initial potential has not been posted. Many trucks are reported to be entering and exiting the well site. Oil and water are the cargo. Many speculators are using advanced math to determine an oil flow rate. Stay tuned for an official release.