re: Tuscaloosa Marine Shale

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.

Im just gonna buy that bitch

Apparently they have been checking out my family's property for both shale and natural gas.

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.
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Read more: AvoyellesToday.com - Deshotels 13H records Initial Potential of 1 167 BOPD Turner Bayou Chalk Project

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.

quote:

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It definitely isn't free money, but right now it seems a bit early on

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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."

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.

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:

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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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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.

Enter the Chinese: WSJ Article; 01/03/2012

By TESS STYNES

Devon Energy Corp. reached a deal with Sinopec International Petroleum Exploration & Production Corp. in which the Chinese oil major will pay $2.2 billion for a one-third interest in five alternative shale plays.

The oil and gas explorer's shares were up 4.3% at $64.67 in early trading.

The deal is another sign of foreign companies' growing appetite for U.S. oil-and-gas assets. It comes on the heels of French oil giant Total SA's purchase of a minority stake in a swath of Chesapeake Energy Corp.'s Ohio shale discovery for $2.32 billion.

"This arrangement improves Devon's capital efficiency by recovering our land and drilling costs to date and by significantly reducing our future capital commitments," said Devon President and Chief Executive John Richels.

Under the deal, expected to close in the current quarter, Devon will serve as the operator. Sinopec will pay Devon $900 million at closing and $1.6 billion paid in the form of a drilling carry, which is expected to be realized by the end of 2014. The deal includes positions across five shale regions: the Tuscaloosa Marine Shale, the Niobrara, the Mississippian, Ohio Utica Shale and the Michigan Basin.

The drilling carry is expected to fund 70% of Devon's capital requirements, which will result in Sinopec paying 80% of the overall development cost. The companies expect to drill 125 gross wells by the year's end across the five areas.

Devon in November reported third-quarter earnings fell 50% from a year-earlier period that included a $1.5 billion divestiture gain, as its hedging losses continued to mask its revenue growth.