Thursday, February 28, 2013

Halcon P&A's the Lambright H-1

Halcon confirmed today that the Lambright H-1 in Rapides Parish, LA was plugged due to what they describe as the TMS being too thin to establish commercial production.

Halcon's press release:
"The Company currently has approximately 75,000 net acres prospective for the TMS in Louisiana. The first well drilled, the Broadway H1 in Rapides Parish, is currently being completed with a 21 stage frac. The well was drilled to a total measured depth of 19,442 feet with a 5,192 foot effective lateral section. In late January, Halc√≥n spud a stratigraphic test well, the Lambright, located 16 miles northwest of the Broadway 1H in Rapides Parish. This vertical test found the zone too thin for commercial production.  The Company intends to review completion results of the Broadway H1 prior to implementing a development strategy."

In 2011, an infamous Baton Rouge "snake oil salesman" told me "the TMS is a shale play. Geology doesn't matter!".  Wow.  Really?  One of the great aspects of the TMS play is that there are over 800 wells that have penetrated the interval of interest. Well logs, cores, and mudlogs present an excellent opportunity to evaluate and define the "sweetspots" in the play.  These data have been available for many years. In 1997, the Louisiana Geology Survey peformed an evaluation focused on the resistivities of the TMS.

In March, 2011, I posted a white paper on our website regarding resistivity in the TMS.
http://ameliaresources.com/documents/tuscaloosatrend/Amelia%20Resources%20LLC%20WEBSITE%20Tuscaloosa%20Marine%20Shale%20RESISTIVITY%20DISCUSSION%20Mar%202011.pdf

In September, 2011, I provided a detailed post on the Passey Log Analysis Method:
http://tuscaloosatrend.blogspot.com/2011/09/passey-log-analysis-method.html

By utilizing the Passey Log Method across the 800 TMS penetrations in the play, one can map the "sweet spots" very definitively.  The geology defines the "sweet spots".  The drillbit confirms them.

The map below depicts the structure of the base of the TMS and highlights a six well cross section heading from west to east (wells numbered 1-6).  Key wells that are adjacent to the cross section are highlighted.  Below the map is a cross section displaying the wells in the Passey Log Method.  The "blue values" above the well represent the "mean" Delta-Log-R value across the TMS section.  The "red values" above the well present the "feet of Delta-Log-R > 0.9".  Delta-Log-R is a calculated value for total organic carbon (TOC).  A detailed analysis of the wells in the play indicate that 0.9 is a good "cutoff" value defining "high TOC reservoir".  The isopach represents the thickness of the high-TOC reservoir section.  The thicker section should contain larger volumes of producible hydrocarbons.  In summary, "more is better".

The thicknesses of Delta-Log-R depicted on the cross section illustrate a significant change across the play from east to west.  Well #6 near the Encana Anderson 17H/18H wells has a thickness of 110'.  These two wells averaged 1000 boepd.  Well #5 near Encana's Horseshoe Hill 10H-1 is 122' thick.  The HH 10H-1 had an IP30 of 695 boepd and has the flattest decline of all of the producers.  Well #3, near the EOG Dupuy 20H-1, is 30% thinner than the wells to the east.  The Dupuy had an IP30 of 420 boepd.  Well #2, promixal to the Halcon Lambright #1, represents only 39' of Delta-Log-R.  So, yes, I agree with Halcon's announcement today that this is too thin.  Well #1 illustrates continued thinning to the west.

The "mean" values of Delta-Log-R also show a consistent decrease moving from east to west.  This log analysis method presents consistent results across this play.  Well results continue to support its accuracy.  It is a tool that our company has used and continues to use to define the "high graded" areas in this play. For this reason, these maps have not been published and are considered confidential.



The map below is a contour map on the thickness of "Delta-Log-R > 0.9" across the TMS-WEST.  The contours illustrate a consistent and gradual thinning of the "high TOC reservoir" section in the TMS.

The EOG Dupuy 20H-1 and Gauthier 14H-1 might be defining the western limit of the play. Time will tell.  EOG's Fort Polk JV with Indigo will provide the next data point in the TMS-West. I consider that location to be a rank wildcat.  If you follow EOG's success in the Eagle Ford, you have to conclude that one should never doubt their expertise. Very impressive results.

As I always say, I hope the whole trend works because it will be a great boom to my home state of Louisiana.  Good luck to all!






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