Thursday, March 29, 2012

Encana Seeks Partner For TMS and Other Oily Plays

This announced today:
"Encana Corp is looking for a joint venture partner to help it develop a number of oil and natural gas assets in North America, Chief Executive Randy Eresman said. The Canadian company is looking for a single partner for a package of assets that could include Encana's position in the Collingwood shale, the Tuscaloosa Marine shale, the Mississippi Lime and the Eaglebine shale in the United States, Eresman said, speaking on the sidelines of a conference in Singapore. The package of assets could also include the company's position in Canada's Duvernay shale, he said.  'One of the things we have been trying to do is to get more liquids, particularly oil, in our portfolio,' Eresman said. 'But because of the high initial cost on that, we think it might be best to reduce our risk so to accelerate that point of commercialization by bringing in another party.'  Eresman said the process could launch "in the next weeks to a month.'"
Source: Reuters

Wednesday, March 28, 2012

Five Points Make A Trend?

Sources indicate that the Encana Horseshoe Hill 10H-1 is consistently producing in the 689 bopd, 416 mcfd range.  With a fifth point added to the chart below, an obvious trend starts to appear.  More is better. Longer laterals and more stages results in better rates.  No secret here.  Point forward, lower costs will be required to drive the play into an economically attractive range.
Tuscaloosa Marine Shale - Initial Production Comparisons

Tuesday, March 27, 2012

Goodrich Announces 1st TMS Location

Goodrich's latest corporate presentation on their website reveals their first Tuscaloosa Marine Shale permit, the Denkmann 33H-1.  In time, we'll see if "the 2nd mouse gets the cheese".
TMS Activity Map (Source: Goodrich Petroleum)



Presentation:
http://www.goodrichpetroleum.com/presentations/MgmtCurrent.pdf

Thursday, March 22, 2012

Regional Age Equivalent Plays

The map below presents the age-equivalent plays to the Tuscaloosa Marine Shale.  The "Eaglebine" of east Texas combines the prolific Woodbine sands with the Eagle Ford.  Note that all three plays align similarly along the Lower Cretaceous shelf margin.  I will present some comparisons to the Eaglebine in the coming weeks.

Upper Cretaceous unconventional plays

Saturday, March 17, 2012

Devon Rig Heading to the Murphy 63H-1

Sources say that Devon's Nabors #7 rig is heading to the Murphy 63H location.  With an Irish wellname and St. Patty's day in the air, may the positive "luck of the Irish" be upon this next test.  Geologically, I believe it to be an exciting one.
Devon Murphy 63H-1 location (Photo taken by a Tuscaloosa leprechaun)

Eagle Ford Stats

The Eagle Ford will likely always be the Tuscaloosa Marine Shale's "big brother" that it will be compared to.  Here's a look at the two on a "year by year" basis.  Tuscaloosa Trenders, lets hope and pray for that growth curve!

Eagle Ford / TMS comparison; Eagle Ford stats sourced from TX RRC and the Oil & Gas Journal

Friday, March 16, 2012

Swift Energy's Austin Chalk Update

From Swift's Investor/Analyst Day transcript:
"We expanded our Austin Chalk position, our original AMI with our joint venture partner, has been extended to 79,000 acres. We entered into a second AMI that covers almost 96,000 acres. We have a very active leasing program in this Chalk trend. We put together 105,000 acres so far. Yeah, I am going to take you through our Central Louisiana/East Texas area. Okay, the, what we call, CLAETX is comprised of four fields, Brookeland, Burr Ferry, and Masters Creek, which are Austin Chalk fields.  So in this year, we have two rigs coming, they are going to come towards the end of this month. And the first rig is going to drill two wells and the second rig is going to drill four wells for total of six wells in Burr Ferry. So that’s going to start off pretty quick now. You could also see the similar to what Steve was showing before what these wells look like, they are going to cost little under a $11 million and here is the EUR 403, the NGL’s 447,000 barrels in the gas 2.5 Bcf. So fantastic return on these wells, so we are – that’s why we were focusing here with hard priced oil.  And now I want to move from Burr Ferry, which we just spoke off to Masters Creek, and we’ve drilled the well, entitled the Exxon Corp. 10-1 this location. We are pretty excited about this well. This is end so well it’s proposed down foot lateral, 6000 foot offset. When we drilled we encountered 24 excellent shows. We only drilled 2,500 feet in the lateral, because we had some steering problems and we decided rather than have a mechanical problem, we wanted to go ahead and complete the well and we did so. We did some testing. The IP for this well is 836 barrels oil per day and 5.4 million cubic feet of gas per day, and this well we are preparing to turn on in about 10 days or five days, excuse me.  So, here’s a look and you can see the fracture density in this well, this is fantastic. So, in a short lateral, we had over 20 fractures that we encountered. So, this is a very exciting for this input program, I will remind you that these wells have been drilled on 2,000 acre units and we are infilling. Here is a significance for this, here is the Exxon Corp 10-1, the black lines here are wells that have been drilled in the field, the orange circles with the lines are the infill locations we can go ahead and exploit this. So, this is a relatively low risk opportunity, and we have a lot of infill and so you can see the acreage and the recovery per well, and their potential.  And here is the type well for Masters Creek and 863,000 barrels of oil, 372,000 barrels of natural gas liquid and 3 Bcf gas payout in 7.4 months, $11.5 million, and you can see the returns, the rate of return, return on investment.  As John showed you in Central Louisiana East Texas, we’re going to focus a fair bit this year on the Austin Chalk drilling program. Masters Creek, we have about 38,000 net acres. We see the potential for a very good infill program about 14 million to 21 million barrels of oil equivalent resource potential net for Swift, and over in Burr Ferry, we have about 74,000 net acres in a drilling window about 30 million to 40 million barrels of resource potential net to Swift."
Transcript:
http://seekingalpha.com/article/438881-swift-energy-company-s-ceo-hosts-investor-analyst-day-transcript

Presentation Slides:
http://www.swiftenergy.com/NEWSROOM/CORPORATE-EVENTS/2012/2012-Analyst-Investor-Mtg/2012-Analyst-Day-Slides-Final.pdf

Corporate Presentation:
http://www.swiftenergy.com/INVESTOR-RELATIONS/Current-Corporate-Presentations/SFY-Corp-01-2012.pdf

Horseshoe Hill Flare

Does anybody want to guess a daily rate?
Encana Horseshoe Hill 10H-1 (Photo taken by Clay Gatlin)

Scout Report - March 16, 2012

Scout Report:
https://sites.google.com/site/tuscaloosatrend/scout-reports

Play Overview:
http://www.ameliaresources.com/documents/Amelia%20Resources%20LLC%20TUSCALOOSA%20MARINE%20SHALE%20Play%20Overview%20FEB%202012.pdf

Unitization:
https://sites.google.com/site/tuscaloosatrend/home/other-documents

Google Maps:
http://maps.google.com/maps/ms?msid=204256365055521729132.0004b5bbdae554174421a&msa=0&ie=UTF8&t=m&z=11&vpsrc=1

News:
http://www.ameliaresources.com/news.htm

Presentations:
http://www.ameliaresources.com/presentations.htm

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Monday, March 12, 2012

Encana Rebalances The Portfolio

Encana's most recent corporate presentation reveals the Tuscaloosa Marine Shale as a key component to the rebalanced portfolio. 
Key highlights:
 
·       Advance potential liquids plays

·       Leverage technology and innovation to lower cost structures

·       De-risk capital exposure and advance development through joint ventures

·       290,000 net acres

·       80% NRI

·       2-7 year lease term

·       Vertical depth: 11,000 feet

·       2011 program:

o   Completed existing horizontal well

o   2 new horizontal wells

o   5,000 & 7,500 ft. lateral length

o   30 day IP of 690 bbls/d from 17 stages

·       2012F program:

o   2-3 rigs

o   6 wells in first half of 2012

Presentation:
http://www.encana.com/pdf/investors/presentations-events/corporate-presentation.pdf

Monday, March 5, 2012

Encana Mississippi Units

37-2012-D Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to integrate, with alternate risk charges, all interests in an exceptional sized 963.25-acre oil unit, situated in Sections 11, 12, 21, and 22, Township 1 North, Range 1 West, to horizontally drill the Horseshoe Hill 11-22H-1 Well, from an exception surface location due to topographical reasons 25’ FNL and 1,357‘ FWL of Section 11, to a depth of 12,800’ to test the Tuscaloosa Marine Shale Formation at an exception bottom hole location 330’ FSL and 660’ FWL of Section 22, with the right to horizontally drill up to three  additional  increased density wells  with an unrestricted eighteen month test period for each well to establish a  maximum efficiency rate (MER) of production for said pool.  Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges.

56-2012-D    ALFRED C. MOORE FIELD - Amite County.  FOR FINAL ORDER
Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to reform the presently-existing 922.06-acre oil unit for the Anderson 18-H-1 Well, to an exceptional sized 1,242.06-acre oil unit, situated in Sections 6, 7 and 18, Township 1 North, Range 5 East, for production from the Tuscaloosa Marine Shale Formation and to integrate, with alternate risk charges, all interests in said new unit, with the right to horizontally drill up to four additional increased density wells on the unit, with an unrestricted eighteen month  test period for each well to establish a maximum efficiency rate (MER) of production for said pool.  Alternatively, Petitioner requests the Board to integrate all interests in said new unit  without alternate risk charges.

61-2012-D  AMITE COUNTY.
Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to integrate, with alternate risk charges, all interests in an exceptional sized 911.88 – acre oil unit, situated in Sections 29, and 32, Township 1 North, Range 5 East, to horizontally drill the Mathis 29-32H-1 Well, from an exception surface location due to topographical reasons 349’ FNL and 1,887‘ FWL of Section 29, to a depth of 12,000’ to test the Tuscaloosa Marine Shale Formation at an exception bottomhole location 330’ FS Land 1,980’ FWL of Section 32, with the right to horizontally drill up to three additional increased density wells with an unrestricted eighteen month test period for each well to establish a maximum efficiency rate (MER) of production for said pool.  Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges.

59-2012-D  WILKINSON COUNTY. 
Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to integrate, with alternate risk charges, all interests in an exceptional sized 968.82-acre oil unit, situated in Sections 6, 7, 11 and 12, Township 1 North, Range 1 West, and Sections 32 and 33, Township 2 North, Range 1 West, to horizontally drill the Horseshoe Hill 11-7H-1 Well, from an exception surface location due to topographical reasons 25’ FSL and 1,358‘ FWL of Section 11, to a depth of 12,800’ to test the Tuscaloosa Marine Shale Formation at an exception bottomhole location 330’ FNL and 660’ FWL of Section 32, with the right to horizontally drill up to three additional increased density wells with an unrestricted eighteen month test period for each well to establish a maximum efficiency rate (MER) of production for said pool.  Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges.
 
 
64-2012-D  AMITE COUNTY. 
Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to integrate, with alternate risk charges, all interests in an exceptional sized 1,270.27-acre oil unit, situated in Sections 40, 41, 42, 43, 45, 46 and 47, Township 1 North, Range 3 East, to horizontally drill the Neyland 45-40H-1 Well, from an exception surface location due to topographical reasons 419’ FSL and 1,602‘ FEL of Section 45, to a depth of 12,500’ to test the Tuscaloosa Marine Shale Formation at an exception bottomhole location 330’ FNL and 1,980’ FEL of Section 40, with the right to horizontally drill up to three additional increased density wells with an unrestricted eighteen month test period for each well to establish a maximum efficiency rate (MER) of production for said pool.  Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges.

Encana's Horseshoe Hill 10H-1 Frac Job

Encana's frac job is currently on stages 10-12 of a planned 18 total stages.  Word in the field is "so far, so good".
Encana Horseshoe Hill 10H-1 frac job