Sunday, June 30, 2019

PetroQuest Energy OLP LLC et al #1

PetroQuest Energy has commenced drilling on its vertical Austin Chalk pilot well in Pointe Coupee Parish. They plan to obtain a conventional core in the well.  The well is permitted to a total depth of 15,840'.  The location is just south of the Fredericksburg Shelf Edge.  

It will offset two Austin Chalk producers.  The UPRC Lacour #1, drilled in 1994, produced 87 mbo and 28 mmcfg.  This was during the Austin Chalk 2.0 era when the concept was to drill horizontal wellbores across clusters of natural fractures.  To the east of the PetroQuest well is the Anadarko Lacour #43.  Note that UPRC became part of Anadarko in 2000.  UPRC was the Austin Chalk "guru" at Giddings Field for many years.  The Anadarko Lacour #43 was drilled in 2011 during a "mini boom" in the Austin Chalk that came across Louisiana.  Anadarko leased 280,000 acres in Louisiana for the play in 2010-11.  I, along with several partners, drilled three Austin Chalk wells in southern Avoyelles Parish adjacent to Anadarko's position.  None of us had success. Despite an exciting initial potential, the Lacour #43 had a rapid production decline due to producing from natural fractures.  Once the fractures deplete, it's "game over".  

If a horizontal eventually gets drilled in this area, it will be interesting to see the response from a high-proppant frac on the natural fractures.  Good matrix porosity with some fractures could be "magical" formula.  The base of the Austin Chalk in an offset well contains 40' of high log-calculated TOC.













Thursday, June 27, 2019

Play Maps

The maps below depict the current well and lease statuses across the play as best we know it from the public records.  As always, use at your own risk.

Petroquest and Marathon filed new permits this week. I'll have more detail on those later.  The ConocoPhillips Erwin #1 frac job has completed.  

Source: SONRIS, DrillingInfo

Source: SONRIS, DrillingInfo

Source: SONRIS, DrillingInfo








Wednesday, June 19, 2019

EOG Astounds With Record Drilling Time

Today the final total depth was reported on SONRIS for the EOG Ironwood 37H-1.  EOG drilled the well in an astounding 18 days where they averaged 1018 feet per day.  ConocoPhillips' Erwin #1 was drilled in 46 days including taking conventional core.  The Hebert #1 took 54 days based on SONRIS reported data.  EOG's drilling and operational team has proved excellence once again.  Let's hope for an astounding initial potential. Their rig is heading to the Brunswick #1 which will be a vertical drill where they plan to take a conventional core in the Austin Chalk.




Monday, June 17, 2019

ConocoPhillips Hebert #1 Result

ConocoPhillips (COP) released an initial potential for the Hebert #1 on Friday.  Like the McKowen #1, it begs many questions.  If these volumes are post-flowback then this is a very disappointing result.  The details will become apparent over the next 1-2 months.

Initial Potential (IP): 206 barrels of oil per day, 134 thousand cubic feet of gas per day, and 4279 barrels of water per day.

COMPLETED 5/21/19 AS A OIL WELL IN THE AUS C RA SUA RES;PM F; 206 BOPD; 134 MCFD; 3729 SITP; 1871 CP; 27/64 CK; 4279 BWPD; 650 GOR; 37 GRVTY; PERFS 14086-19320' (ST: 10)
SONRIS

Let's start with what we don't know:
-Frac design: proppant/water volume, stage/cluster details, and pressures
-Reservoir pressure
-Mudlog: lithology and gas
-Geosteering; wellbore path and landing zone
-Timing of the volumes that were released as the initial potential 
-Chlorides of the produced water. Is is frac or reservoir water?

There are several potential interpretations from this limited amount of data:
1) The Austin Chalk in this area might not be brittle enough so it doesn't respond well to a "high proppant" frac.  COP obtained a conventional core of the entire Austin Chalk in their 3rd well, the Erwin #1.  They have good "rock" data to make this determination.  I'm highly confident that the Erwin #1 will be landed in the best target zone.
2) Landing too high above the base of the Austin Chalk results in the frac penetrating too high into the more water-saturated reservoir section.  I didn't have a 2D seismic line through this wellbore like I did for the McKowen #1 so I can't analyze as accurately the landing zone of the horizontal wellbore.  I generated a grid on the Base of Austin Chalk ("BAC") horizon from surrounding vertical wells which allowed me to examine the landing zone location.  I estimate that the wellbore was consistently located approximately 80' above the BAC.  I would ideally seek a lower landing zone to best impact the highest TOC section.  Without having COP's geosteering data, it's hard to be confident on the landing zone interpretation (see graphic below).
3) The results that were submitted represent a time period early in the flowback period where the frac water volume is very high.  Future monthly production volumes will prove or disprove this theory.
4) The "high proppant" frac is intersecting natural fracture clusters that are connected to water-wet zones.  Both the McKowen #1 and Hebert #1 are located above deep-seated, dip-trending salt ridges that could have created abundant natural fractures (future post).
5) Austin Chalk oil in this area might be thermally immature.  COP's core data from the Erwin #1 will prove or disprove this theory.
6) Being that we're on well result #3 in the Louisiana Austin Chalk 3.0 era, much research and development lies ahead.  Continued trial and error will be required during the first fifty wells.  The "Permian mania" didn't happen after the first three horizontal Wolfcamp wells.





Wednesday, June 12, 2019

Prime Rock Resources and New Dawn Energy Form A Joint Venture


Prime Rock and New Dawn announced a joint venture today.  The maps below depict the acreage in the Austin Chalk Play.  The large combined contiguous block is within and adjacent to Masters Creek Field that has produced over 45 MMBOE since the 1990's (25.2 mmbo, 116 bcf, 310 mmbw)  The depths of the "core" block range from 14000'-19000' TVD.  It is located south of the Fredericksburg Shelf Edge in the downdip "D" fairway.  Depletion and water production will be the likely risks on the acreage within the old field boundary.

For more details:
PRESS RELEASE - CLICK HERE








Tuesday, June 11, 2019

EOG Permits A 2nd Well In The Downdip Fairway

The EOG LAMS Stack resurgence continues with a new permit in the downdip fairway.  The EOG Brunswick #1 is located in Pointe Coupee Parish (29-T4S-R9E).  Note that the LA Office of Conservation has misspelled the well name. I confirmed the lessor name with the Assessors Office (see assessor tract map below).  From what I hear, the rig will come from EOG's current drilling location (Ironwood 37H-1).  The Ironwood is likely to finish drilling at the end of this week in record time.

The Brunswick permit states 17100' as the planned total depth which indicates a vertical hole.  I'm assuming that the horizontal details will be added later.  If not, then this could be a vertical pilot hole where conventional core might be obtained.  At the surface location, the Base of the Austin Chalk should occur at approximately 16788' measured depth which provides about 300' of "rat hole".  This will be their deepest well to date.  Upon completion, EOG will have one well in each of their three lease areas.

As I detailed in a prior post on the "regions" across the play, this downdip area has much more complex geology than that of the updip fairway.  Growth faults, that were initiated during the time of Tuscaloosa sand deposition, pose potential limitations on lateral length due to the fact that one wouldn't want to drill across a fault with throw ranging from 100-300'.  The surface location of the Brunswick #1 is directly north of the first Tuscaloosa expansion fault.  The geologic complexity increases dramatically south across that fault.  EOG's lateral will occur between the Fredericksburg Shelf Edge and the first Tuscaloosa expansion fault.  A local fault to the north traps a small accumulation of gas in the Tuscaloosa sands to the east.  The structural dip orientation in the block might lead EOG to orient the lateral directly up structure.  Another aspect of the downdip fairway is that dip direction changes within fault blocks.

The Chesapeake Schexnayder #1, an Austin Chalk horizontal well, was drilled in July, 1997 (3.65 miles east).  It had an initial potential of 768 bopd and 300 mcfgd.  It produced only 32 MBO and 8 MMCFG.  This well was drilled during Austin Chalk 2.0 in the 90's when the theory was to drill an open hole lateral across natural fractures.  From these well results, one might conclude that the well didn't intersect many oil saturated fractures.

Most significant, the Amoco Beaud #1 (2.1 miles east) drilled through the Austin Chalk.  The logs reveal 85' of high resistivity, high log-calculated TOC, and oil saturated chalk/marl section.  The bottom 150' of the Austin Chalk averages 3% on the density porosity log with "spikes" up to 6-7%.  This location has lower porosities than that of the EOG Ironwood 37H-1, but is more likely to have natural fractures, higher pressure, and more natural gas.  All three of those factors can assist with oil production.

The lowest 40' in the Austin Chalk appears to be very chalky which should present a good "landing zone".  The interval above presents a cyclic chalk/marl sequence very similar to that seen in the Marathon Todd #1 core.  The frac should be designed to impact the bottom 85' of the section.

This will be an exciting exploratory well.  The "downdip" players (Devon, Marathon, Petroquest, Torrent, Blackbrush, and Cimarex) will be watching closely.























Monday, June 10, 2019

Australis Goes 2 For 5 in the TMS

Australis confirmed the rumors today that they've failed to achieve a problem-free TMS well once again.  They're now 2 for 5.  The press release below details another problematic lateral wellbore.  They also confirm a drilling "pause" after well #6.  Let's hope for an EOG acquisition!

PRESS RELEASE
http://www.australisoil.com/irm/PDF/1651_2/TMSUpdateJune2019

Thursday, June 6, 2019

CGG and Fairfield Geotechnologies Join Forces on Large WAZ Survey in South Central Louisiana’s Austin Chalk

Today CGG and Fairfield provided a press release regarding the Marathon Austin Chalk 3D aquisition project.  The project has been in progress for some time now.  I understand that acquisition will begin soon.
The map below depicts an outline of Marathon's acreage and an estimated boundary for the 3D seismic shoot.  The 3D will cover the core of the Marathon acreage block.
--------------------------------------------------------------------------------------------------------------------------
CGG and Fairfield Geotechnologies Join Forces on Large WAZ Survey in South Central Louisiana’s Austin Chalk
Houston, USA – 6 June, 2019
CGG and Fairfield Geotechnologies have signed a cooperation agreement to acquire a large-scale, multi-client survey in South Central Louisiana. The new 578-square-mile wide-azimuth survey, known as Bayou Boeuf, is designed to image the Austin Chalk play and provide a better understanding of the formations in this area which have recently regained industry interest.
The Bayou Boeuf survey provides coverage over the Avoyelles, Rapides, Evangeline and Saint Landry Parishes. Permitting is nearly complete and acquisition is expected to commence in September 2019.
Delivery of fast-track products and final results is expected for Q1 and Q3 2020 respectively. The data will be processed by CGG using an advanced AVO-compliant sequence in order to ensure the final data is reservoir-ready, paving the way for a fast-track Reservoir Characterization Package (ResPack Fast) that will deliver key elastic rock property volumes to assist in further development of the reservoir.
Joe Dryer, President – Multi-Client Geosciences, Fairfield Geotechnologies, said: “This area has attracted attention from numerous oil and gas majors and large independents and is expected to be the anchor for additional survey growth. Both CGG and Fairfield Geotechnologies will be marketing this program.”
Dechun Lin, EVP, Multi-Client & New Ventures, CGG, said: “The Austin Chalk is a prospective play that has been gaining interest among operators in the industry. The aim of our Bayou Boeuf survey is to provide a better understanding of the geology in the area, unlocking its potential. The combined expertise of our two companies, both of which are highly experienced at operating in challenging areas, working with the government and local communities, and delivering high-quality results, will ensure the success and industry value of this survey.”
About CGG
CGG ( www.cgg.com ) is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry. Through its three complementary business divisions of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation. CGG employs around 5,100 people around the world, all with a Passion for Geoscience and working together to deliver the best solutions to its customers.
About Fairfield Geotechnologies (Formerly FairfieldNodal)
Privately held Fairfield Geotechnologies ( www.fairfieldgeo.com ), a pioneer and global leader in ocean bottom and land nodal seismic multi-client surveys and data processing services. In addition to its extensive multi-client database in the Gulf of Mexico Shelf and Permian Basin, the company continues to expand licensing coverage in the Lower 48 through focused investment and strategic acquisition of existing multi-client libraries.
Contacts
Group Communication & Investor Relations, CGG Christophe Barnini Tel: + 33 1 64 47 38 11 E-Mail: invrelparis@cgg.com President Multi-Client Geosciences, Fairfield Geotechnologies Joe Dryer Tel: +1 281 275 7654 E-Mail: jdryer@fairfieldgeo.com