Tuesday, April 30, 2019

More TMS Results

Australian penny stock operator, Australis Oil, released their latest TMS well results.  They're currently "2 for 4" on an operational basis.  When Encana sold their TMS acreage package, the TMSers all had hoped for a proven, financially-strong unconventional operator to be the buyer.  For now, we can be excited about two of their completions.  The Stewart 30H-1 continues to produce at a good rate after an initial potential of 1458 boepd on a 6850' lateral.  The latest well, the Taylor 27H-1, had an initial potential of 1386 boepd from a 6798' lateral and 20 stages.  Surprisingly, Australis is using a 2014 completion design mimicking what Encana last used in 2014.  It will be interesting to see future results hopefully utilizing a 2019 frac design.  With a $65 million "success contingent" Macquarie Bank debt facility, it will be interesting to see how Macquarie participates in the future if additional mechanical challenges occur in upcoming wells.  

The 1st map below illustrates the Australis well locations with respect to the LAMS Stack Play.  The 2nd map is a base map for the two cross sections that follow.  The labels on the map depict an isopach of feet of DLogR greater than 0.9.  DLogR represents a log-calculated TOC value (Passey Method).  The map and cross sections illustrate that Australis' current focus area is thinner than that in the core of the TMS play.  I define the "core" as the thickest accumulation of TMS source rock.  Note that public companies typically use the term "core" to define the area surrounding their leases.....funny the way it is.

It will be interesting to see EOG and ConocoPhillips drill TMS wells in the future where the source rock is almost twice as thick in places relative to the Australis focus area.  More interesting is that EOG's current lease position lays down very well with the TMS DLogR isopach map.  Maybe we'll see a TMS well in 2020 from them.  Prove the Austin Chalk first and then the "stack" potential second.  That's an excellent and optimistic strategy.

Monday, April 29, 2019

Houston Chronicle Article

The Houston Chronicle spent a day with us in St. Francisville a few weeks ago. They published a nice article on the front page Sunday which did a nice job of presenting the project from the landowner's perspective. Nice job Jordan Blum.


Wednesday, April 24, 2019

EOG Pivots Updip To The Bullseye of The LAMS Stack Play

It's finally official.  EOG just released a permit for their next well (Ironwood 37H-1) in the emerging Louisiana Austin Chalk Play.  Their location in East Feliciana Parish, Louisiana is located in the direct center or "bullseye" of the LAMS Stack Play where the Austin Chalk and Tuscaloosa Marine Shale (TMS) stack vertically 800' feet apart.  Both formations have thick accumulations of source rock in this area.  In June, 2012, EOG entered the TMS play late and drilled four unsuccessful wells on the western side of the play.  They are now geographically-positioned extremely well to test both the Austin Chalk and the TMS.  

This location will find the Austin Chalk at a much shallower depth than in their first well in southern Avoyelles Parish.  The Austin Chalk occurs at approximately -12550-800' TVD-SS in the Ironwood 37H-1.  The Ironwood location will be lower cost, more oil-prone, and lower pressure than the EOG Eagles Ranch 14H-1.  It's very likely that the well will have a much lower water cut than the wells that have historically produced in the downdip region of the play.

Many believed that EOG had exited the play, but courthouse records confirm and define a significant shift updip into West/East Feliciana and Amite County, Mississippi that commenced in early 2018.  An additional location is in process in West Feliciana Parish on strike with ConocoPhillips' Hebert  #1.

Many in the industry consider EOG to be the best unconventional operator in the world.  The Ironwood location is proximal and directly on strike with the ConocoPhillips Irwin #1 that is currently drilling.  This sets up a nice "head-to-head" company comparison between the two operators.  The Ironwood appears to have a planned lateral length of 5300'.  

On a regional basis, the Ironwood location is on trend with the downdip portion of Giddings Field in Texas that has produced over 1.44 billion barrels of oil equivalent.  Relative in distance from the Lower Cretaceous Shelf Edge, the Ironwood is in a similar position as the prolific Karnes Trough.

This well will be very closely watched by the industry.  EOG continues to be an operational leader in every play that they drill in.  The LAMS Stack community couldn't be more pleased with the two operators leading the charge in this region of the play.

Amelia Resources has methodically acquired a geologically-driven lease position in this area for the past 20 months.  We're excited to have EOG join the activity in the Felicianas.  We currently have approximately 300,000 acres for sale wrapped around this new location.  Details can be provided under a Confidentiality Agreement.


Monday, April 22, 2019

ConocoPhillips Erwin #1 - Conventional Core

It's very encouraging to see that ConocoPhillips (COP) obtained conventional core in their 3rd Austin Chalk well, the Erwin #1.  The report on SONRIS indicates that COP attempted to recover 283' of core. Hopefully they had success in recovery.  This continues to show how COP is preceding with a smart and very deliberate exploratory approach to proving up their large acreage position.

The cross section below confirms that the core was well placed and long enough to capture the entirety of the Austin Chalk.  These rock data will provide excellent data including porosity, permeability, saturations, gas volume, oil gravity, and geochemistry.  In addition, geological attributes such as facies and rock type can be determined.  These data will be integrated into their petrophysical analysis and will assist with drilling, completion design, and production.

Wednesday, April 17, 2019

Powering The United States

This is a very informative presentation that all Americans should understand.  The average American doesn't even know where electricity is sourced from.


Monday, April 1, 2019

Austin Chalk "Throw Back" From 2013

Here's a "throw back" from January, 2013.  It's very interesting to see Devon back in the trend.  Hopefully they have a much better run this time.