Monday, January 14, 2013

Devon Tests The Austin Chalk

Devon's decision to make a vertical completion in the Austin Chalk in the Lane 64-1 well is surprising and very exciting.  It appears that the company is attempting to test additional targets on their acreage.  The Austin Chalk provides a nice secondary objective that could have regional potential.  Over the last two years, several companies have been challenged by the play in southern Avoyelles and northern St. Landry Parishes.  Anadarko and Atinum appear to have abandoned the play, while 2-man Australian company, Pryme Energy, is currently drilling a well in southern Avoyelles funded by Macquarie Bank.  The Austin Chalk, due to its fractured nature, can create many challenges during the drilling, completion, and production phases.  Mudlog shows during the drilling phase can entice operators to complete the well.  Nice initial potentials generate excitement only to rapidly drop in production the first month.  It's not a play for the timid or capitally constrained.

With regards to Devon's location, I believe that this is in an area where the existing data warrants testing.  Being proximal to the Feliciana Salt Ridge increases the probability of the presence of fractures.  Wells near the Lane 64-1 have mudlog shows in the Austin Chalk.  Log analysis (see below) indicates high resistivities and good porosities. The SONRIS work order indicates that they plan to perforate over 200'.  Locals indicate that the rig is on location.  This should be an exciting development for the area that is located in the deeper part of the TMS.  I commend Devon for their efforts.  It must seem like an eternity for the locals who had a Devon rig on the Lane 64 location back in May, 2011.  Good luck to all!
SONRIS work order

Tuscaloosa Marine Shale - activity map; Base of TMS structure

Austin Chalk production
Devon Lane 64-1: resistivity and gamma ray log (Source: SONRIS)

Passey crossover log displays for two wells adjacent to the Devon Lane 64-1



3 comments:

  1. Kirk,

    This is certainly a surprise. Do you have any information regarding whether Devon will be renewing its TMS leases that are now expiring?

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  2. Barbee,
    There is no official word on Devon's status...many rumors.

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  3. Kirk,

    Can you put on the hat of a WI partner with Devon in this well and tell me how you would respond both internally and externally to an AFE for a Chalk well in a prior TMS location? What do you think the cost to drill/complete/frac this well was? Any conjecture on IP based on surrounding chalk producers, or is this a wildcat? Thanks in advance...

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