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Goodrich grabs big stake in Tuscaloosa formation
Posted on 7/24/13 at 10:59 am
Posted on 7/24/13 at 10:59 am
Goodrich grabs big stake in Tuscaloosa formation
Move expected to increase drilling activity
Article continues at link:
LINK
So, is this a sign that the Tuscaloosa Marine Shale field that stretches from Marksville to Kentwood between Baton Rouge and Adams County, MS going to take off given current oil and gas prices?
Move expected to increase drilling activity
Article continues at link:
LINK
quote:
BY TED GRIGGS
Advocate business writer
July 24, 2013
Goodrich Petroleum Corp. has acquired a major stake in 277,000 acres in the Tuscaloosa Marine Shale, with plans to step up drilling activity in the area.
Goodrich acquired Devon Energy Corp.’s two-thirds share of the 277,000 leased acres in the Tuscaloosa for $26.7 million. The deal lifts Houston-based Goodrich’s holdings to 320,000 acres in the Tuscaloosa and makes the company the largest player in the formation.
Goodrich President and Chief Operating Office Robert Turnham Jr. said Tuesday that the company will spend $50 million this year drilling wells in the Tuscaloosa, but plans to kick up its activity on the newly acquired acreage.
Goodrich could spend as much as $150 million on Tuscaloosa wells in 2014.
“Under the right scenario, we would love to even double that number and spend as much as $300 million,” Turnham said.
The Tuscaloosa, which stretches across the state’s midsection and to eastern Mississippi, could produce an estimated 7 billion barrels of oil. Industry members and public officials believe the formation could launch the same kind of economic boom in this region that the Haynesville Shale — a mostly natural gas formation — did in the northern part of the state.
Goodrich believes it has “cracked the code” on how to complete wells in the Tuscaloosa, from where to land the horizontal drilling sections that span out from a well to the recipe for fracking fluid used in cracking rock formations to release trapped oil and natural gas. And Goodrich believes it can apply that code to about 75 percent of the leases it just bought.
quote:
Barrell said Devon had two major problems:
•Unlike Goodrich, Devon didn’t drill the horizontal sections of its wells in the most productive layer of the formation, which is 100 to 250 feet thick.
•Devon also didn’t use as much proppant, which keeps the fractures open, as it should have.
When a driller fracked the Haynesville, it was like cracking slate. But in the Tuscaloosa, the rock is less brittle and the fractures tend to close.
quote:
Once the play becomes more successful, all the service companies come in and that helps drive down costs.
Turnham expects other energy companies, including the majors, to move into the Tuscaloosa.
So, is this a sign that the Tuscaloosa Marine Shale field that stretches from Marksville to Kentwood between Baton Rouge and Adams County, MS going to take off given current oil and gas prices?
This post was edited on 7/24/13 at 11:05 am
Posted on 7/24/13 at 12:05 pm to dewster
If Goodrich really has cracked the code, perhaps it will..but I'd be surprised if they figured it out when Devon didn't. This would be pretty exciting for sure..oil companies have been drooling over that formation for decades but no one has figured out how to make it happen (until now?)
Posted on 7/24/13 at 1:25 pm to TheIndulger
Posted on 7/24/13 at 2:03 pm to dewster
quote:
Goodrich Petroleum Corp. has acquired a major stake in 277,000 acres in the Tuscaloosa Marine Shale, with plans to step up drilling activity in the area.
Goodrich acquired Devon Energy Corp.’s two-thirds share of the 277,000 leased acres in the Tuscaloosa for $26.7 million. The deal lifts Houston-based Goodrich’s holdings to 320,000 acres in the Tuscaloosa and makes the company the largest player in the formation.
Wow
Posted on 7/24/13 at 2:32 pm to Interception
I guess dam landmen will be knocking on my door again.
Posted on 7/24/13 at 2:49 pm to fishfighter
quote:
This increases the company's total Tuscaloosa Marine acreage to 320,000 net acres. The shale, which covers part of Louisiana and Mississippi, produces about 750 barrels of oil per day.
seems rather low doesnt it?
Posted on 7/24/13 at 3:23 pm to tiddlesmcdiddles
They are now the single largest player in the formation....definately a major commitment on their part.
It vastly expands the acerage under active lease in East Feliciana, St Helena and Tangipahoa. Not as much on the MS side and nothing west of the river.
Goodrich has found success in Amite County.
It vastly expands the acerage under active lease in East Feliciana, St Helena and Tangipahoa. Not as much on the MS side and nothing west of the river.
Goodrich has found success in Amite County.
This post was edited on 7/24/13 at 3:36 pm
Posted on 7/24/13 at 3:45 pm to dewster
quote:
Goodrich
Great Family
Posted on 7/24/13 at 4:38 pm to BACONisMEATcandy
quote:
This increases the company's total Tuscaloosa Marine acreage to 320,000 net acres. The shale, which covers part of Louisiana and Mississippi, produces about 750 barrels of oil per day.
If true, that is freaking pathetic.
Posted on 7/24/13 at 4:45 pm to lsugradman
The 750 is an daily average in March which is low...here's a little more insight:
quote:
Goodrich’s Crosby well, in Wilkinson County, Miss., produced an average of 1,137 barrels per day during its first 30 days of production. Goodrich’s recently completed Smith well, in Amite County, Miss., had initial daily production of 1,000 barrels of oil and 255,000 cubic feet of natural gas.
By contrast, Devon’s seven Tuscaloosa wells were producing the equivalent of 750 barrels of oil per day in March.
This post was edited on 7/24/13 at 4:56 pm
Posted on 7/24/13 at 7:32 pm to dewster
1,000 barrels a day @ $100+ BBL is pretty good return on a $10 to $15 million investment in drilling the well. Won't take too many of those to make the folks wbo negotiated the Goodrich acquisition look pretty smart.
Posted on 7/24/13 at 9:49 pm to dewster
Goodrich got a "steal" because all other industry players said "NO!" The DVN AC is mostly garbage and the economics don't work.
Posted on 7/24/13 at 9:50 pm to lsugradman
quote:
If true, that is freaking pathetic.
That's from Devon's poorly performing wells. Goodrich's and Encana's wells perform much better.
Posted on 7/24/13 at 10:23 pm to Beerinthepocket
Somewhat better AC but still no barn burners proving up the play...the dvn AC isn't the same.
Posted on 7/24/13 at 10:32 pm to cwill
Encana just frac'd 17H-2 and 3 each at about half the cost of 17H-1 and 18H. I'd say that's very promising.
Posted on 7/25/13 at 8:52 am to islandtiger
quote:
1,000 barrels a day @ $100+ BBL is pretty good return on a $10 to $15 million investment in drilling the well. Won't take too many of those to make the folks wbo negotiated the Goodrich acquisition look pretty smart.
i agree, but that is for one well, not 322K acres, which i assume (could be wrong here) should have many wells currently producing right now.
Posted on 7/25/13 at 11:05 am to tiddlesmcdiddles
The acreage from Devon has only 7 wells producing only 750bbls a day. So no, there aren't many wells producing yet and the ones that are producing in the Devon acreage are performing poorly.
Posted on 7/25/13 at 2:06 pm to dewster
quote:Didn't know Robby was COO at Goodrich. Good guy.
Chief Operating Office Robert Turnham Jr.
This post was edited on 7/25/13 at 2:10 pm
Posted on 7/25/13 at 9:03 pm to islandtiger
1 day IP rates mean almost nothing. 30 day average rates tell a much better story.
Hopefully these wells have a good decline curve. Will probably be tough for the propant to keep the fractures open for a more ductile formation like this.
Really hope they can lower prices and make these wells work, would be great for LA
Hopefully these wells have a good decline curve. Will probably be tough for the propant to keep the fractures open for a more ductile formation like this.
Really hope they can lower prices and make these wells work, would be great for LA
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