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re: Tuscaloosa Marine Shale

Posted on 5/20/12 at 10:31 pm to
Posted by Beerinthepocket
Dallas
Member since May 2011
856 posts
Posted on 5/20/12 at 10:31 pm to
The oil out of these wells will get a ~$20 premium over the WTI price, so that should help out the well with making economic sense.
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12578 posts
Posted on 5/21/12 at 9:13 am to
Why?
Posted by TigerBite
Dallas
Member since Feb 2004
2535 posts
Posted on 6/23/12 at 10:59 pm to
quote:

The oil out of these wells will get a ~$20 premium over the WTI price, so that should help out the well with making economic sense.


This is off a bit. I'd have to look at prompt LLS at the time of posting, but today it's $15-16 over WTI with a "tropical" premium thrown in there as of Friday. Probably looking at +$8.00 at best after transportation and margins thrown in there.

June LLS spread was ~$14, so not sure where the $20 is coming from. At the lease that translates to much lower.
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