re: Tuscaloosa Marine Shale

quote:

---

I've always wondered how to interpret distance from a producing tract as a measure of how likely it is for the surrounding area to get leased, and at what rates. In O&G speak, how far is 3 miles?? Is it right around the corner or is it light years away? How does the new horizontal technology affect this proximity issue??

---

Drilling units for natural gas in Louisiana are typically 640 acres, 1 square mile. Well bores within the unit must be at least 330ft from the unit boundrys. They will usually place the rig on one boundry and drill vertical then go horizonatal to the opposite boundry stopping 330 feet short. As far as when they drill your land, I wish I knew, I have property in one gas play, and every unit adjacent to mine has been drilled, but not mine.

quote:

---

Drilling units for natural gas in Louisiana are typically 640 acres, 1 square mile. Well bores within the unit must be at least 330ft from the unit boundrys. They will usually place the rig on one boundry and drill vertical then go horizonatal to the opposite boundry stopping 330 feet short. As far as when they drill your land, I wish I knew, I have property in one gas play, and every unit adjacent to mine has been drilled, but not mine.

---

North Louisiana has generally used 640 acre geographic units for all deep gas wells (Cotton Valley, Hosston/TP, Haynesville, and Smackover). Oil wells are often on smaller spacing dependent on depth. South Louisiana has mostly used geological units which follow the reservoir boundaries (interpreted) and can vary in size. These unit hearings are known for often being opposed because of their interpretive nature. The first Devon unit in Ethel is proposed as a 720 acre unit. I would assume these units would be more geographical in nature and would probably be some standard between 640 acres and 1280 depending on how long the laterals need to be and how the fractional sections near the Mississippi River come into play. What was interesting is in the Haynesville Shale companies got exemptions on the 330' distance from well bore to unit boundary line. They were allowed to drill past that as long as no perforations or stimulation occurred within 330' of the unit boundary line. This has allowed them to get a bit longer laterals and often drill the vertical leg from the adjacent section therefore maximizing horizontal exposure inside the 640 acres.

Louisiana State Lease Results from 09-14-2011 (with $$ per acre and Royalty). LINK

Suggest you download and/or print since these links tend to expire....

quote:

---

tigerpawl

---

Thanks for the heads up. I am going to hold out. I could use the moneys, but the way I look at it, it money I never had to loose in the first place. Everything around me is now leased. Last company that called wanted to put a well on my place. I will just wait and see.

quote:

---

Thanks for the heads up. I am going to hold out. I could use the moneys, but the way I look at it, it money I never had to loose in the first place. Everything around me is now leased. Last company that called wanted to put a well on my place. I will just wait and see.

---

If they contact you again you could always ask for a drilling commitment and maybe take a slightly lower up front bonus. You can ask for anything you want and it will either be agreeable or not agreeable to whoever is making you offers whether it's an operating company or a broker. Depending on how much property you have you can either hold out and hope that the play turns into a commercial success or you lease and take the risk out of the equation. If the play works your property will be much more valuable. If it is not successful then you are back at square one. There aren't any guarantees in the oil and gas business. It appears that you at least understand your situation and how you stand in the play if it can become viable.

Like I said, I was in the first black gold rush here and I took the money then. This time I plan to hold out unless things change for the good.

Fresh information on a new well being completed at the Avoyelles/St. Landry line. Well was begun in Avoyelles and then went horizontal into St. Landry for about 7,000 feet. The well is in the Austin Chalk which I understand to reside beneath the TMS. LINK

Estimated Potential: 753 BOPD

It's my impression that this is a fairly significant well (753 BOPD), but I also hear that Austin Chalk wells are notorious for dropping off quickly.

Houston company [Anadarko] applies for 13 oil well drilling units near Odenburg [Avoyelles/St. Landry]

Looks like things are heating up a bit in the Avoyelles/St. Landry area. A new horizontal well was recently completed by Anadarko in that area (Dominique #27) with Initial Production of 753bopd but also had high levels of water (1,400bwpd).

"This is the largest number of units so far which have been applied for as drilling begins in what may be an oil boom for Avoyelles Parish."

"The land grab continues heavily in the southeastern part of the parish as at least one oil company is actively leasing minerals from landowners at as much as $350 an acre sign up bonus and a 20 percent royalty."

What is a good ratio of barrels per day to barrels per day of water needing to be disposed?

Avoyelles Today

quote:

---

The first two wells have been completed in the search for minerals in the Austin Chalk formation deep below Avoyelles. Early reports indicate that first of the wells, near Dupont, came in producing about 250 barrels a day, and the second, below Goudeau, is producing about 723 barrels a day, with 1400 barrels of water a day which must be disposed of.

---

Yea that's some pretty damn good production, be interesting to see the there pressures stay up.