Monday, February 3, 2020

Marathon Crowell #2 Result

The Marathon Crowell #2 completion result is about where I forecasted based on the offset production.  

COMPLETED 1/21/2020 AS AN OIL WELL W/ 210 BOPD; 1650 MCFD; 8200 FTP; 6063 SITP; 1300 CP; 18/64" CK; 3343 BWPD; 94% BS&W; 7857; GVTY 52 API; PERF: 16,157'-22,372'

At these production rates, it's impossible to have positive economics at these DHC/CC costs.  At $1.82/mcf gas, natural gas is a tough place to be.  The gas-oil ratio is much higher than the wells on strike.  The API gravity at 52 is quite a bit higher than the adjacent well to the north (47).  The water cut, as forecasted, is very high.  This will be important to observe over the months to come.

The prior post below provides some extensive details on the area and the outlook for this well.

"Having interpreted the 3D seismic on the west side of the field, I can state that the prolific producers there were always proximal to down-to-the-basin faults where fracture clusters are greatest.  To date, all acres haven't been created equal in this field."
"The Marathon Crowell #2 is on strike with poor to decent producers, but has good producers to the northwest.  Note that the offset wells produce primarily natural gas which is currently selling at $2.83/mcf."
"Both wells will likely be in the 4000 range.  Gas will greatly assist producing from the low porosity and permeability, but at the current market prices, oil is a better strategic and economic target."
"This region of the play in Louisiana illustrates much lower resistivities than seen in the prolific trend of Texas and the LA-EAST in Louisiana.  One reason for that could be higher water saturations in the chalk reservoir.  The field historically produced 13.6 barrels of water to every barrel of oil.  That's an extremely high water ratio.  Disposing of water is expensive and impacts the overall economics. One of the risk factors is that a large-proppant frac could increase the water volumes."  


  1. Here is Marathons Update on LA Austin Chalk from the investor slide Deck.
    As you can see, a really high rate with good mix of Liquids and Gas(In the Volatile Oil to Condensate window!) producing on a "restricted choke" with 8000# of FTP(high pore pressure), which means this well is capable of producing way more with an unrestricted choke especially as the rest of the frac load comes off the well. I would consider this very encouraging results. Interested to see the next couple months of production. Looks liek they are already drilling their next well in their program.

    Resource Play Exploration (REx) Operational Update
    Progressing exploration and appraisal in two oil plays of scale
    Louisiana Austin Chalk
    • ~200,000 contiguous net acres
    • First modern completion in Western Fairway on
    flowback and cleaning up (6,400 ft. lateral)
    – Recent oil rates at 1,200 BOPD (2,650 BOED) on
    restricted choke
    – Flowing wellhead pressure of >8,000 psi
    – Gas oil ratio, API gravity, and water oil ratio consistent
    with pre-drill expectations
    • Recently spud 2nd exploration well

    1. Darling,
      We have 5000 acres right near the well. I'm always humored by the CEO's referencing the blog. Mark Papa did it in 2013 when he was being "aloof" about EOG's TMS position. We all get it. Message to CEO: don't release erroneous information unless you want erroneous conclusions drawn from it. As I'm sure you are aware, the operators have tremendous leeway on what they release. They chose to "sandbag". No surprise. No crime, no foul. Standard practice.
      As I suggested before, why don't you create your own blog where you can make your own "whine" and cheese there. Good luck!

    2. P.S. Send me a copy of your broker statement highlighting all of your MRO shares!