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TigerDog83 
LSU Fan
Member since Oct 2005
3890 posts
| re: Tuscaloosa Marine Shale (Posted on 11/18/11 at 9:18 pm to lsuoilengr)
quote:
You got 6 mil to drill a well? Good luck! Make sure you run a monte carlo simulation or two first.
Austin Chalk and TMS are two different animals. We've looked at previous Austin Chalk working interests and passed. The Austin Chalk is not for the faint of heart. There are a ton of risks with the TMS also, and still a lot of unknowns regarding rock quality and ultimate recoveries. First Devon well potential posted at 120 BOPD. While it might be mechanical issues that isn't probably going to be economic. Also, you're closer to $9-$10 USMMD for TMS horizontals right now.
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TigerDog83
LSU Fan
Member since Oct 2005
3890 posts
| re: Tuscaloosa Marine Shale (Posted on 11/18/11 at 9:38 pm to kfizzle85)
quote:
CRZO looks like it might be one to watch in that regard.
From what I have heard they are in one of the best areas of the Niobrara and have the right size to play ratio as you suggested where it could be materially significant to them. They did well in the Barnett and are in the Eagleford also I think.
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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
21141 posts
| re: Tuscaloosa Marine Shale (Posted on 11/18/11 at 9:44 pm to TigerDog83)
This is kind of an aside from all thats being posted here, but it pertains to CHK and the Eagleford. I was told that CHK is laying about 20 new lines at any given time in the EF. Beginning in January they will be constructing around 75 new lines at any given time in 2012. It's about to really ramp up out here for CHK.
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kfizzle85
LSU Fan
Houston
Member since Dec 2005
19806 posts
| re: Tuscaloosa Marine Shale (Posted on 11/18/11 at 9:52 pm to TigerDog83)
I think because of scale it becomes (from an investment standpoint) a thing where you're basically betting on big money chasing established business and focused expertise rather than assets. Let CRZO go ahead and do the dirty work and take the risk, and if/when they prove successful doing such, big boy X (which could easily be your neighborhood national oil company given their current activity) comes in and snatches up the whole company at 10x ebitda because they're literally sitting on piles of cash.
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WavinWilly 
UTEP Fan
Wavin Since 1990
Member since Oct 2010
6669 posts
| re: Tuscaloosa Marine Shale (Posted on 11/21/11 at 3:52 am to kfizzle85)
I know I am in way over my head, but I have managed to get a weak grasp on the terms thrown around in here. Question I have is this: my family (grandfather specifically) owns the mineral rights to some land in Mississippi. I'm under the impression we don't actually own the land. (If this is not actually possible, be gentle when you ridicule me  ) In this scenario would we need to lease the land from the owner of the surface property?
Basically I'm asking if I'm gon get rich.
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Bigsike
Nicholls St. Fan
Member since Jan 2009
1332 posts
| re: Tuscaloosa Marine Shale (Posted on 11/21/11 at 9:00 am to WavinWilly)
When you own the mineral rights you own whatever natural resource profits come from that property. That was a smart move by your grandfather. Now you just have to wait 10-15 years before things start popping off before your pimping out the 3rd floor of the newly renovated Illusions gentlemen's club in Woodville(2020). 
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WavinWilly
UTEP Fan
Wavin Since 1990
Member since Oct 2010
6669 posts
| re: Tuscaloosa Marine Shale (Posted on 11/21/11 at 9:20 am to Bigsike)
 Im just gonna buy that bitch
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tigerpawl
LSU Fan
Can't get there from here.
Member since Dec 2003
3972 posts
| re: Tuscaloosa Marine Shale (Posted on 11/30/11 at 9:50 am to WavinWilly)
Interesting article from Greater Baton Rouge Business Report on the TMS. 11/28/2011
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WavinWilly
UTEP Fan
Wavin Since 1990
Member since Oct 2010
6669 posts
| re: Tuscaloosa Marine Shale (Posted on 11/30/11 at 2:32 pm to tigerpawl)
Apparently they have been checking out my family's property for both shale and natural gas.
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kfizzle85
LSU Fan
Houston
Member since Dec 2005
19806 posts
| re: Tuscaloosa Marine Shale (Posted on 11/30/11 at 3:11 pm to tigerpawl)
Thanks for that link.
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cajuntiger65
LSU Fan
Avoyelles Parish
Member since Apr 2010
76 posts
| re: Tuscaloosa Marine Shale (Posted on 12/9/11 at 2:03 pm to kfizzle85)
Oil boom may be coming for Avoyelles parish and other local areas.
The potential of the re-worked Deshotels well at Woodside in the southeastern corner of Avoyelles is over 1,000 barrels of oil per day.
If this figure holds for actual production, the impact can be very big for the future of Avoyelles Parish. A profitable well will encourage more wells to be drilled in the area which targets the Austin Chalk formation in southern Avoyelles.
The Deshotels 13H well is the second well drilled on the Deshotels farm of the old Woodside Plantation. Earlier, it had some production delays which have been reworked.
The following is from Pryme Engergy of Australia, one of the owners of the well:
The nitrogen injection procedure, to recover water and drilling mud from the horizontal section, and flow testing of the Deshotels 13H No.1 well have been completed.
The initial potential rates filed with the State of Louisiana Department of Natural Resources have been established at 1,167 barrels of oil per day (bopd), 644 thousand cubic feet of natural gas per day (Mcfd), and 350 barrels of water per day (bwpd) on a 24/64th inch restricted choke and at a 1,870psi flowing tubing pressure.
Additional pressure information is as follows:
Shut in tubing pressure 2,850psi Shut in casing pressure 3,000psi Bottom hole pressure 6,100psi
Pryme’s net revenue interest in the Deshotels 13H No.1 is 30% (40% working interest). Oil and natural gas from the well are sold through the Deshotels 20H No.1 production facility; the revenue will supplement Pryme’s current cash position of $5.2 million.
Well production updates will be made in the coming months as the production rate and pressures stabilize. The well is currently shut in pending the installation of an artificial lift system in order to optimize well performance over the long term.
“This result is a significant milestone for Pryme and provides a clear indication of the potential value to be gained from the proposed multi- well development of the Company's Turner Bayou Chalk project,” said Justin Pettett, Pryme’s Managing Director.
“We now look forward to the completion of drilling and flow testing of the Rabalais 35 No.1 well, which is operated by Anadarko, in the northernmost part of our Austin Chalk acreage. In addition to its production potential if successful, this well will provide valuable data to better delineate our Turner Bayou acreage.”
Copyright 2011 AvoyellesToday.com. All rights reserved.
Share This Article | similar stories
Second Deshotels well flow tests at 200 barrels of oil per day | 1 month ago Avoyelles Today.Com Copyright 2011 AvoyellesToday.com. All rights reserved.
Turner Bayou Chalk Project Operational Update: third well delayed until 2012 | 21 days ago Avoyelles Today.Com Copyright 2011 AvoyellesToday.com. All rights reserved.
Deshotels 13H No.1 Flow Testing Resumes Turner Bayou Chalk Project | 2 months ago Avoyelles Today.Com Copyright 2011 AvoyellesToday.com. All rights reserved.
Pryme Oil And Gas Completes Farmout Of Turner Bayou Chalk Project in Southeast Avoyelles | 17 months ago Avoyelles Today.Com Copyright 2011 AvoyellesToday.com. All rights reserved.
Pryme to Participate in Anadarko Austin Chalk Well, Rabalais 35, in Avoyelles | 15 days ago Avoyelles Today.Com Copyright 2011 AvoyellesToday.com. All rights reserved.
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Read more: AvoyellesToday.com - Deshotels 13H records Initial Potential of 1 167 BOPD Turner Bayou Chalk Project
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MarshBangin
Elon Fan
Ole Met-tree
Member since Nov 2011
55 posts
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3-5 yr 12.5% is standard, 15% if you're lucky... Gets fun after that. Can negotiate, but when I worked in the industry, I rarely saw leases with %s that high. Would have to be a pretty lucrative/proven area. All dependent on the competition.
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MarshBangin
Elon Fan
Ole Met-tree
Member since Nov 2011
55 posts
| re: Tuscaloosa Marine Shale (Posted on 12/9/11 at 4:05 pm to Beerinthepocket)
It definitely isn't free money, but right now it seems a bit early on. Though the numbers aren't the same the Marcellus and the Haynesville both fetch a pretty penny. I'd wait it out. A previous employer of mine required us to lease at 50$ an acre. It jumped to 1,000$ in less than 6 months.
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tigerpawl
LSU Fan
Can't get there from here.
Member since Dec 2003
3972 posts
| re: Tuscaloosa Marine Shale (Posted on 12/10/11 at 4:01 pm to MarshBangin)
quote:
It definitely isn't free money, but right now it seems a bit early on
Interesting chatter on this particular forum about this very subject: LINK
Also suggest that all interested parties in TMS subscribe to it. Good source of information from people who appear to be in the line of fire. Seems to be a good balance of O&G peeps and Mineral Owners....
Here's another good source: LINK "Knowledge is Power."
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Athanatos 
Vanderbilt Fan
Baton Rouge
Member since Sep 2010
5603 posts
 Online
| re: Tuscaloosa Marine Shale (Posted on 12/10/11 at 11:12 pm to tigerpawl)
I assume the crude is receiving LLS pricing? Also, what does the midstream/liquids processing infrastructure looks like currently? NGLs being knocked out and processed or is the wet gas just being sold w/ a btu factor uplift?
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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
8152 posts
| re: Tuscaloosa Marine Shale (Posted on 12/11/11 at 1:56 am to MarshBangin)
haynesville shale we got $20,000 an acre, 25% royalty before cost, 3 yr lease with 2 yr option after that. This was in southern caddo parish in 2008.
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tigerpawl
LSU Fan
Can't get there from here.
Member since Dec 2003
3972 posts
| re: Tuscaloosa Marine Shale (Posted on 12/11/11 at 8:51 am to LSUBrad5277)
quote:
haynesville shale we got $20,000 an acre, 25% royalty before cost, 3 yr lease with 2 yr option after that. This was in southern caddo parish in 2008.
Coffee talk has it that Haynesville speculators didn't really know what they had until 25-30 wells were completed. Then all hell broke loose. It appears that the TMS is approaching that level now. Haynesville-like lease rates are still light years away for TMS mineral owners, but encouraging to see some parallels in the early evolution of the play.
Also nice to see Oil Prices at $100+...
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GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
5817 posts
| re: Tuscaloosa Marine Shale (Posted on 12/31/11 at 10:20 am to tigerpawl)
Have land in N St Tammany, any one heard of anyone looking in this area or if the play is expected to reach this far south and west? Have looked but haven't found anything definite except for this statement.
quote:
According to the LSU report, the marine shale section lies between sands of the upper and lower Tuscaloosa sections and varies in thickness from 500 feet in southwestern Mississippi to more than 800 feet in the southern part of the Florida Parishes, southeastern Louisiana.
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tigerpawl
LSU Fan
Can't get there from here.
Member since Dec 2003
3972 posts
| re: Tuscaloosa Marine Shale (Posted on 1/2/12 at 8:31 am to GREENHEAD22)
quote:
any one heard of anyone looking in this area or if the play is expected to reach this far south and west?
This is in the ballpark... WWL News Report
Also: Click on Map to enlarge
I think at this stage of the TMS, it would be advisable to take everything with a grain of salt...
This post was edited on 1/2 at 8:36 am
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TH03 
Notre Dame Fan
Barves Fan
Member since Dec 2008
45577 posts
| re: Tuscaloosa Marine Shale (Posted on 1/2/12 at 5:20 pm to tigerpawl)
It ain't going to 20k again anytime soon. I was leasing in Vernon and Wynn and the most anyone in that area paid was 300/nma. Lots of unproven shite down there, and tons of federal lands, ie Fort Polk, etc.
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