Wednesday, December 28, 2011

Stone Energy Enters The TMS Play

Several sources indicate that Stone Energy has obtained leases in the Tuscaloosa Marine Shale Play in Wilkinson County, Mississippi.  The company has not made any announcements regarding the play.  The yellow outline on the map below is where the company is believed to be focusing their leasing efforts.  It's been reported that the company signed a lease on a large tract with Crosby Land & Resources.

Tuscaloosa Marine Shale Play - Rumored lease buying area of Stone Energy (Yellow)

Friday, December 16, 2011

Austin Chalk - Yield

A regional evaluation of Austin Chalk production presents some interesting results.  The yield (bbl/mmcf) presents a striking contrast from the eastern to western areas of the trend.  On the western side (AC-West), the Austin Chalk in the eastern Texas counties has a yield ranging from 1-500 bbl/mmcf.  The farthest western Louisiana parishes have a similar range of 150-500 bbl/mmcf.  The AC-West produces high volumes of gas with oil.  In contrast, the AC-East is very "oily" with yields in the 560-3560 bbl/mmcf range.  Recent discoveries in both regions have yields that align with the ranges.  One might not necessarily be better than the other.  These complex, fractured, carbonate reservoirs might respond better to more or less gas.  Time will tell.

One other very interesting aspect of the "yield map" is that the point where this drastic change occurs in western Avoyelles Parish is aligned with the western edge of the "higher resistivity" TMS-East.  The significance of the TMS resistivity is yet to be confirmed.  The Austin Chalk yields and the TMS resistivity maps do seem to indicate that the east and the west are different hydrocarbon systems.  The significance of that will likely become apparent in the coming years after much more drilling in both plays.

Austin Chalk - Yield (bbl/mmcf)

Tuesday, December 13, 2011

Scout Report - December 13, 2011

This week's Scout Report:
 https://sites.google.com/site/tuscaloosatrend/scout-reports?pli=1

It was tough week for the Austin Chalk drillers:

Swift Exxon Corp 10-1:
16882'; TSTD BOP'S 12/5/11; UNABLE TO GET PAST LNR TOP; PUMPED KILL MUD; PU NEW DIR ASSY, TIH TO LNR, UNABLE TO TRIP THROUGH LNR; PUMPED HEAVY MUD DOWN BACK SIDE IN ATTMT TO PRESSURE UP CSG TO GET WELL MOVING, W/ NO PROGRESS; PUMP KILL MUD; PU NEW DOWNHOLE TOOLS, DRLD TO 16822'; DOWNHOLE TOOL FAILURE; KILL WELL;
Antinum Indigo 16-1:
17262'; DRLD TO 17262'; DRILL STRING TWISTED OFF ABOVE BHA; KILLED WELL; TIH W/ FISHING TOOLS TO TOF @ 14926'; LATCH ON TO FISH, POOH & L/D PARTIAL FISH; TSTD BOP'S 12/9/11; TRIP IN & OUT HOLE W/ IMPRESSION BLOCK; TIH W/ BHA TO 2700', INSTALLED ROTATING HEAD; TIH TO 15008' & TAGGED UP; STAGE OUT OF HOLE TO 6500' & ESTABLISH CIRCULATION; CBU;

Production Decline Rates

With exciting initial potential rates being announced for both the Tuscaloosa Marine Shale and Austin Chalk plays, it's important to understand the nature of production declines in these unconventional reservoirs.  The chart below depicts the percent monthly declines in five Austin Chalk wells.  The chart illustrates that Austin Chalk wells take about 8-10 months to stabilize at a consistent decline rate.  As more TMS and Austin Chalk wells produce, I will track these declines for comparison. 

Austin Chalk: Monthly Oil Production Decline Percent

Monday, December 12, 2011

Encana Files For A New Unit In Amite County, MS

Encana has filed for a new unit in Amite County, MS.  The unit is adjacent and west of the Anderson 17H-1 well.  The details from Docket #425-2011-D:

"Petition of EnCana Oil and Gas (USA), Inc., LLC, requesting the Board to integrate, with alternate risk charges, all interests in an exceptional sized 922.06-acre oil unit, situated in Sections 7 and 18, Township 1 North, Range 5 East, to horizontally drill the Anderson 18H-1 Well from an exception surface location due to topographical reasons 1,078' FEL and 3,324' FSL of Section 18, to a depth of 11,950' to test the Shale Formation and all other formations and pools that may be encountered at an exception bottomhole location 440' FEL and 330' FNL of Section 7, with an eighteen month unrestricted test period to establish a maximum efficient rate (MER). Additionally, Petitioner requests authority to drill up to four increased density wells on the unit. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges."

Friday, December 9, 2011

Indigo Announces TMS Discovery

Indigo Minerals announced today in a press release a discovery in their Bentley Lumber 34H-1 well. 

Key highlights:
  • flowed at a rate of 543 barrels oil equivalent (80% oil) during a 24 hour test period
  • successfully drilled without the need for an intermediate casing string through the shale interval
  • 15-stage fracture stimulation of the target interval
  • hydrocarbon mix is light, sweet 45 API gravity oil along with high liquid yield natural gas (1520 Btu and 11 GPM natural gas liquids).
  • The oil is currently being trucked to sales and the gas is temporarily being flared with state approval.
  • Indigo II intends to secure a joint venture operating partner sometime in early 2012 to bring horizontal oil expertise and capital to this large, oil shale development project
Press Release:
http://www.indigominerals.com/docs/LA_EF_PR.pdf

Drilling Locations: TMS and Austin Chalk

Wednesday, December 7, 2011

Scout Report - December 7, 2011

This week's Scout Report:
https://sites.google.com/site/tuscaloosatrend/scout-reports

Rumors abound regarding the test results from the Encana Weyerhaeuser and the Indigo Bentley.  Awaiting official releases of initial potentials.

Sunday, December 4, 2011

Devon's Beech Grove 68H-1 IP's at 120 BOPD

Devon has officially released an initial potential of 120 bopd for the Beech Grove 68H-1. 
SONRIS:
COMPLETED 10/30/11 AS A OIL WELL IN THE TUSCALOOSA MARINE SHALE RES;PM F 120 BOPD; 100 MCFD; 950 CP FTP; 30/64 CK; 312 BWPD; 833 GOR; 42 GRVTY PERFS 14275-17013' (ST: 10)

The frac job consisted of 12 stages and was challenged by a bad dogleg in the wellbore.  Some stages were cut short and others experienced screenouts.  I consider this the first well in this current TMS era with many more lessons to be learned.  Rumors indicate that the well has cleaned up and is flowing at a higher rate. It will take twelve months of production from 10-20 wells before we understand the economics of this play.