re: Tuscaloosa Marine Shale

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I'm just going by what Encana is saying. Do you think Ecana knows want they are talking about????
They presented that Resource Play Hub yesterday during their presentation, which probably an attempt to gather investors. That, I would assume is part of their plan to help keep the ball rolling with additional revenue. They claim this method will cut cost.
Also,you previously mentioned lease cost. Well, out of all of the shale plays, TMS offers the lowest cost in leasing, so that cost is a drop in the bucket for drilling companies.

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Multi well pads can cut some cost, but it won't materially change the economics of the play if the zone won't produce enough oil. These pads have been used in other commercial plays including the Haynesville, Barnett, Fayetteville, and Marcellus, so it's not as if you've discovered something new that will make the TMS work. These have already been used in the gas shales but low gas prices have made even these development wells uneconomic for now. TMS wells will cost a lot of money to drill and then another large sum of money to complete with large multi-stage frac jobs. Lease cost might be lower in the TMS play than elsewhere, but it still is a cost that has to be accounted for just like the cost to operate producing wells. Take $10 million and divide by the expected net oil price ($60-$80 depending on what royalties, transportation costs, etc. you assume) and you will see what kinds of oil volume payout will require.