Wednesday, April 25, 2012

Encana's Quarterly Results

Encana released this information today with their quarterly results:
“In the Tuscaloosa Marine Shale, where the company has about 310,000 net acres straddling the Mississippi and Louisiana border, Encana currently has three wells on production. The Board of Education 01H was a well drilled by a previous operator and completed by Encana. The Weyerhaeuser 73H-1 well was drilled by Encana at a horizontal lateral length of approximately 5,000 feet with a 30-day initial production rate of 740 barrels of oil equivalent per day (BOE/d). The Horseshoe Hill 10H-1 was drilled to a lateral length of 5,300 feet and successfully completed with 18 stages, and had an initial 30-day production rate of 656 BOE/d. Two additional wells were drilled in the quarter with lateral lengths of 7,500 feet and 8,800 feet and are expected to be completed by the end of April.”

Tuesday, April 24, 2012

Encana Annual Shareholders Meeting

Encana will hold their Annual Shareholders Meeting tomorrow (4/25)  in Calgary.

http://www.encana.com/investors/shareholder/meeting.html

Maybe they'll make an announcement about the "stable of horses".

The Four TMS Horsemen?

Now this would be interesting....

The Notre Dame Four Horsemen

Monday, April 23, 2012

TMS Producers: Monthly Percent Change

My post from last week with the TMS production chart generated many phone calls.  The chart below compares the wells from a "percent monthly change" perspective.  It illustrates some consistency as production continues out into months three and four. Many more wells and months of production will provide a more consistent and predictable picture.
TMS Producers: Percent Monthly Change - BOPD (Source SONRIS)

Saturday, April 21, 2012

Friday, April 20, 2012

Scout Report - April 20, 2012

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

Play Overview:
http://www.ameliaresources.com/documents/tuscaloosatrend/Amelia%20Resources%20LLC%20TUSCALOOSA%20MARINE%20SHALE%20Play%20Overview%20MAR%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

Show your appreciation for this blog by making a tax deductible donation to our favorite charity:

TMS Monthly Production - April 2012

Here's an update of the TMS monthly production:

Source: SONRIS, MSOGB

Frac Job: Screenout Definition

Many have asked me to explain the term "screenout".  Here's a good definition:
http://www.worldoil.com/June-2011-Review-of-screen-out-in-horizontal-well-fracturing.html

Wednesday, April 18, 2012

Tuesday, April 17, 2012

Encana Anderson Frac Job Stages

The word out in Amite County is that 30 stage fracs will be attempted on both of Encana's Anderson wells.  To date, 18 stages were the most (Encana Horseshoe Hill 10H).  If the frac jobs go well and the "world is linear", these wells could produce some exciting results.  Stay tuned. The Anderson 17H is on Stage 5. 

Post a comment and tell us your prediction for a 30 day IP in bbls/oil per day and mcf/gas per day.

TMS Frac Jobs; Circles and numbers represent "barrels of oil per day"

Monday, April 16, 2012

Encana Anderson Frac Jobs

The frac job for Encana's Anderson 17H #1 well is in progress.  The 18H well will follow.  Based on equipment on the ground, it appears that Encana is utilizing microseismic to monitor and evaluate the frac job.

Geophysical equipment; Anderson 18H #1 location

Encana Anderson 18H #1 location; preparing for frac job

Sunday, April 15, 2012

Tuscaloosa Trend Events

There are some good audios available this week from the IPAA Investment Symposium in New York:
Devon:
-Monday, April 16, 2012, at 12:40 p.m. ET:
http://www.dvn.com/Newsroom/Pages/NewsRelease.aspx?id=1681948

Halcon Resources:
-Tuesday, April 17, 2012, 9:10 AM ET:
http://investors.halconresources.com/events.cfm

Goodrich Petroleum:
-Tuesday, April 17, 2012 3:20 p.m. ET:
http://phx.corporate-ir.net/phoenix.zhtml?c=83169&p=irol-EventDetails&EventId=4757823

Friday, April 13, 2012

Halcon Enters The TMS

The phones are buzzing today confirming numerous lease offers from Halcon Resources in Rapides Parish.  Offers have been stated to be $500/acre and a 1/4 royalty.  Halcon is also acquiring leases in the "age-equivalent" Eaglebine play in East Texas.  We'll see how this TMS duel with EOG turns out. 

Encana Horseshoe Hill 10H #1: Initial Potential

Photographer: Rollins


Encana has filed this initial potential for the Horseshoe Hill 10H #1 in Wilkinson County, MS:
3/20/2012; 732 BOPD, 483 MCFD, 498 BWPD
2499# on 14/64; 44.3 API

EOG Proposes 2nd TMS Unit

NOTE: These maps were posted with an error yesterday. Corrected maps can be found below.
-------------------------------------------------------

EOG doesn't appear to be wasting any time with their drilling plans. A 2nd unit has been proposed in sections 14, 23 of 1N-5E. EOG appears to be testing two depth environments to determine pressures and hydrocarbon mix. Their two units place the base of the TMS at -11600' and -13600' TVD-SS. The Lake Roseau location is at a similar depth to Devon's Murphy 63H #1 that is currently drilling in W. Feliciana Parish.

Bayou Twisty Field - TMS RA SU A - 960 Acres - Sec. 20, 29, 32 3N-5E
Lake Roseau Field - TMS RA SU A - 960 Acres - Sec. 14, 23 1N-5E
Base TMS Structure contours (black), EOG lease area (red), TMS Units (blue polygons), TMS wells, Higher resistivity outline (blue dash)

EOG TMS units

Source: LA Dept. of Conservation

Dear Landmen,
While you're printing these maps, please don't forget to make a donation to our favorite charity:




Emerging Shales Conference - Presentation/Audio

Here's my presentation from the Emerging Shales Conference that was held in Houston last month:
Slides:
http://www.ameliaresources.com/documents/presentations/EMERGING%20SHALES%20CONFERENCE%20amelia%20resources%20kirk%20barrell%20MAR%202012.pdf
(some slides have been omitted due to confidentiality)
Audio:
http://www.emerging-shale-plays-usa.com/media/downloads/52-kirk-a-barrell-president-amelia-resources-llc.mp3
(It takes time to load)

Tuesday, April 10, 2012

EOG & MCX Partner In The Tuscaloosa Marine Shale

Documents recorded in the courthouse indicate that MCX Exploration (Louisiana), LTD is EOG Resources new TMS joint venture partner.  MCX is a subsidiary of Mitsubishi.  The deal appears to be effective 3/30/12.  The assigned leases are in Avoyelles and Rapides Parishes, LA.
http://www.mcxusa.com/

Monday, April 9, 2012

EOG Applies For First TMS Unit

EOG still hasn't made an announcement regarding the Tuscaloosa Marine Shale Play, but they have applied for their first TMS unit in Avoyelles Parish.  The location would target the Base of TMS at approximately -12800' TVD-SS.
EOG Resources - Bayou Twisty Field - Unit application (Source: LA Office of Conservation)
Based on the location of EOG's buying area in Avoyelles and Rapides Parishes, I postulate that they are targeting the structural nose formed by the La Salle Arch in search of potential natural fractures.  A large portion of their acreage occurs within the higher resistivity area, but a fair amount does not. This indicates that EOG is not focused as much on resistivity, but have targeted structure in search of fractures.
Regional structure: Base of TMS; EOG lease areas (red); Higher TMS resistivities (blue dash)

It's great to see EOG in the play.  Their Eagle Ford experience will bring a lot to the play.  The "pilot fish" have already landed in Avoyelles and Rapides leasing alongside this prominent shale player.

Several leases have been amended with the name of EOG's Japanese joint venture partner.  I would expect an announcement soon from the company.  It is rumored that their targeting an additional 100,000 acres to their current ~120,000 acres.
EOG recently released an update of the Eagle Ford operations with some very impressive metrics:

2011 marked a significant year in the development of EOG's single largest asset, the South Texas Eagle Ford. Production at year-end was 66 thousand barrels of oil equivalent per day, net, 78 percent of which was crude oil.

Starting 2011 with a 12-rig drilling program that ramped up to 26 rigs in December, EOG drilled and completed 244 net wells during the year with a focus on optimizing completion techniques, in addition to reducing drilling days and overall well costs. Moving into development mode early in 2011, EOG began shifting its attention to increasing recovery of the oil-in-place in the field. To test the impact of well spacing on reserve recoveries, EOG drilled eight pilot programs that included 33 total wells. Based on production analysis from these pilots and reservoir modeling, EOG is now pursuing development drilling on 65 to 90-acre spacing, significantly tighter than the original density of 130 acres between wells.

After taking into account both the excellent results from the 375 wells it has drilled to date across its 120-mile acreage position and the results from the down-spaced drilling tests, EOG has increased its estimated potential reserves in the Eagle Ford from 900 million barrels of oil equivalent (MMboe) to 1,600 MMboe, net after royalty (NAR). The 700 MMBoe, NAR, or 78 percent increase represents an estimated 6 percent recovery factor. On its 572,000 net acres in the prolific oil window, EOG has identified approximately 3,200 remaining drilling locations and increased its average per well estimate to 450 thousand barrels of oil equivalent (MBoe), NAR.

EOG's well results in the Eagle Ford continue to lead the industry. In Gonzales County, the Henkhaus Unit #1H, #2H, #3H, #4H, #6H and #7H wells were drilled on a pattern of 65-acre spacing. The six wells were completed to sales at individual initial production rates ranging from 2,424 to 3,733 barrels of oil per day (Bopd) with 442 to 679 barrels per day (Bpd) of natural gas liquids (NGLs) and 2.2 to 3.4 million cubic feet per day (MMcfd) of natural gas per well. The Mitchell Unit #3H, #4H, #5H, #6H, #7H and #8H wells, which were also drilled as down-spaced pilots, began initial production at 2,833 to 3,527 Bopd with 275 to 485 Bpd of NGLs and 1.4 to 2.4 MMcfd of natural gas per well. The Meyer #3H, #4H, #5H, #8H and #9H wells had individual peak oil rates ranging from 1,647 to 2,813 Bopd with 199 to 413 Bpd of NGLs and 1.0 to 2.1 MMcfd of natural gas. EOG has 100 percent working interest in these 17 Gonzales County wells.

"With tremendous resource potential still remaining on our acreage, we continue to test and apply techniques that will increase the oil recovery and potential of the Eagle Ford, our crown jewel. This strategy takes us into the next inning of development. By concentrating our efforts on getting more oil out of the ground early in the development phase, we are taking a good asset and making it great," Papa said. "Looking across the industry, we believe EOG's Eagle Ford position represents the largest domestic net oil discovery in 40 years and the highest rate of return play in North America today."

Entire press release:
http://investor.shareholder.com/eogresources/releasedetail.cfm?ReleaseID=649495

Upcoming Presentations

I will be presenting on the Tuscaloosa Marine Shale at these upcoming events:

Sunday, April 8, 2012

Revised Scout Report

I was alerted to an error in last Friday's Scout Report regarding the frac details for the Encana Weyerhaeuser 73H-1.  A corrected version is now posted:
https://sites.google.com/site/tuscaloosatrend/scout-reports

Thank you E.S. for the catch. Tuscaloosa Trenders, always let me know when you identify information you believe to be incorrect.

Happy Easter to all!

Thursday, April 5, 2012

Devon Touts The Tuscaloosa Marine Shale

Devon presented details on the Tuscaloosa Marine Shale to analysts in Houston on Wednesday.  Here is a summary:

DEVON Analyst Meeting
April 4, 2012 – Houston, TX
NOTES FROM ANALYST PRESENTATION
·       Very large and meaningful acreage position; just under 300,000 net acres to JV; under 200,000 net acres to Devon
·       Very large resource potential associated with this play
·       Unrisked potential: 1.7 billion barrels; over 1.1 billion barrels unrisked net to Devon
·       To drill about 10 wells in the play this year
·       Highly overpressured reservoir
·       Put position together at very economic price
·       Some infrastructure will have to be built out
·       Tremendous resources associated with this play coupled with the high pressures that can add significantly potentially to the deliverability to the rates; very large prize potential here
·       Think that we’re going to get good rates from these wells once we unlock the keys to completions; main issue is getting costs down; relatively expensive wells for a resource play; this plays to Devon’s strengths; consistently done this in other plays
·       Cana Shale: similar depths to Tuscaloosa Marine Shale; reduced costs 30-40% since inception of drilling program; cost reduction will be the focus of the rest of the 2012 program
·       TMS Strat Column: highly laminated lithology; has brittle intervals of sand, siltstone, and limestone.  There has been discussion in industry that this is a ductile shale system and that it’s going to bend and not break. That’s one of the concerns of the play.  I can tell you that there are intervals of sand and siltstone that add to the brittleness of it that makes it frackable.  There’s a significant fracture system that’s present in there.  We know that it’s capable of production.
·       Wide spread shelfal setting with low structural relief.  Good thickness (150-200’); easy to target the right interval and stay in zone; high resistivity which indicates the very oily nature of this; believe that we’re in the oil window for the bulk of our acreage position
·       Highly overpressured; 0.7 psi/ft (normal .465 psi/ft); means you can pack a lot of hydrocarbons due to overpressuring and can have very high rates associated with this reservoir due to pressure
·       Good frac barriers above and below; Don’t want to frac into wet sands below; Frac barrier below the shale and above the Tuscaloosa sands
·       Conventional core: you can see fractures that are present; very dense; closely spaced fractures will improve permeability; provide significant benefit for the overall production; can be challenging on drilling side; lose a lot of fluids; one of the challenges that we have
·       Completed two wells (Beech Grove, Soterra); drilling Murphy and Weyerhaeuser; neither of first two were optimum from lateral length or completion design; not indicative of what productivity of play can be once completions are optimized; understand that Encana has had better completions to the north in what we consider same geological environment
·       Play has incredible potential; resource is huge; the prize once we optimize drilling and  completion techniques and costs; very compelling; we do have some learning curve to go through; been through this learning curve before; early completions in Cana had problems; optimistic we can work our way through these completion and cost issues and create great deal of shareholder value.
·       Joint Venture: Devon (2/3), Sinopec (1/3)
·       Gross Acres: 285,000 acres
·       Net Acres: 190,000 acres
·       Average Royalty: 21%
·       Unrisked reserves: Gross 1,730 MMBOE, Net 1,150 MMBOE
·       2012 Capital: Gross $167 MM, Net $44 MM
·       Drill & Complete Costs: $12-14 million
·       Estimated Ultimate Recovery: 400,000-600,000 (90% liquids)
·       Initial Potential Rate (1st Month Average): 700-900 barrels of oil per day
Webcast:
http://phx.corporate-ir.net/phoenix.zhtml?c=67097&p=irol-EventDetails&EventId=4739338

Presentation Slides:
http://phx.corporate-ir.net/phoenix.zhtml?c=67097&p=irol-EventDetails&EventId=4739338

Monday, April 2, 2012

Devon Continues Delay On Release of Beech Grove Production

One of the important variables to monitor regarding the TMS play is the monthly production rate decline.  As of today, Devon still has not released the January production volumes on SONRIS for the Beech Grove 68H-1.  All of the TMS producers had their's posted several weeks ago.  It will be interesting to see the current decline rate.

Devon Adds Units In Tangipahoa Parish

Devon continues to add units to their focus area in Tangipahoa Parish.
Devon's Tuscaloosa Marine Shale Units (Tangipahoa Parish, LA)