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

TigerDog:

Yes sir, I look at that every month. We have acreage in several wells permitted, and two that are now being fracked. That is the gist of my curiosity.

When I look at the MSOGB data I also take a pause in the sense that unless these wells last between 15-20 years I do not believe they will reach the EUR projections either. Now, what GDP/ECA/HK and others have listed as their EUR's also includes gas, but the TMS is mostly oil with not all that much gas.

Many of the wells, especially Halcon's, are very poor. I know very, very little about the O&G business, but when I run some brief numbers I figure that in order for the TMS to reasonably viable oil has to be about $80 or above and the well costs have to come down to around no more than $9mm per well.

The TMS has a very low land cost and lower royalty burdens compared to some of the other areas. So there is that slight positive. But unless the wells are repeatably good, better than the most of the last 10-12 I don't see there being long term viability in the TMS given the oil prices.