re: Tuscaloosa Marine Shale oil well sets record (for TMS) - 1540

Petreaux:
I am not sure if I am seeing the whole article and you are only seeing part of. Conveniently, the bottom line economics are not discussed in this article. I also have problems at times with Seeking Alpha articles, but for whatever reason I was able to read this one, I think as I don't get the "subscribe to see the rest of the article" message.

The one paragraph that stood out to me was this one, not that I fully understand it, but to an amateur it sure sounds good:

quote:

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Finally, Halcón provide its 605Mboe "base case" type curve which is representative of the average well it expects to drill across its holdings. The curve is based on analysis of 6 wells in the play using current industry standards and then "normalized" to a 7,200 foot lateral. As shown below, Halcón expects an IRR of 40% at $12MM well cost and $90 oil. Significantly, the graphic shows that Halcón's has an average of 66% working interest across its TMS holdings, with an average royalty interest of 22% and net revenue interest of 51%

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I guess the big key there is the 605MBOE of oil, as no TMS well has come close to that yet. From my rough calculations and SWAG on decline curves it would take the Crosby well about 5 years to reach that, if it ever does. And the Crosby well is the best in the area supposedly. I don't know, I hope for the best.

I appreciate your insight and commentary into this, helps us laypeople understand things a little better.