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Message
Louisiana may get Rich again - Austin Chalk
Posted on 8/26/19 at 9:36 am
Posted on 8/26/19 at 9:36 am
Baws, Louisiana may get rich again. If you have land sitting on top of the Austin Chalk formation, you might get rich too because you would possibly be sitting on huge oil and gas reserves. Producing from a Chalk formation is now possibly due to technological advances in hydraulic fracturing.
Here’s the location of the Austin Chalk formation:
LINK
Unfortunately on the other end, ConocoPhillips said that
Oil companies will continue drilling exploratory wells targeting the Austin Chalk. This could be the next Permian in Louisiana but we just have to wait and see. This could probably be a huge opportunity for Louisiana. Your thoughts?
quote:
Houston oil companies such as EOG, ConocoPhillips and Marathon Oil are betting they can find oil and gas in the section of the Austin Chalk that extends deep into rural Louisiana and Mississippi. With South Texas’ Eagle Ford shale aging and West Texas’ thriving Permian Basin increasingly dominated by supermajors such as Exxon Mobil and Chevron, Houston’s top operators are exploring the Louisiana chalk as they seek the next big find in the nation’s shale revolution. EOG, ConocoPhillips and Marathon have each leased more than 200,000 acres in Louisiana at about $1,000 an acre — compared to $100,000 an acre in parts of the Permian — and begun drilling exploratory test wells.
Here’s the location of the Austin Chalk formation:
LINK
Unfortunately on the other end, ConocoPhillips said that
quote:
The results to date are disappointing," said ConocoPhillips Chief Operating Officer Matt Fox. "The oil rates have been about a 100 barrels a day. It's just unlikely to be enough to justify a development in that part of the play." Three out of ConocoPhillips' four test well thus far in Louisiana have produced more than 90 percent water and not enough oil to justify big investments, he said
quote:
However, ConocoPhillips will keep examining the region and explore more with the overlaying Tuscaloosa Marine shale in the same area in Louisiana, Fox added. "There are targets in the Tuscaloosa Marine shale," he said "So the acreage is not condemned, but that primary target in the Austin Chalk doesn't look encouraging just now."
Oil companies will continue drilling exploratory wells targeting the Austin Chalk. This could be the next Permian in Louisiana but we just have to wait and see. This could probably be a huge opportunity for Louisiana. Your thoughts?
This post was edited on 8/26/19 at 9:47 am
18
Posted on 8/26/19 at 9:38 am to Gray12
Somebody will get rich but not the people owing the land
Posted on 8/26/19 at 9:41 am to Gray12
quote:
Your thoughts?
What year is it?
The chalk is indeed productive, but until our state government does something about severance taxes, most companies will avoid LA for better business climates like TX and Arkansas.
Posted on 8/26/19 at 9:46 am to Wtodd
quote:
Somebody will get rich but not the people owing the land
Well if you own a bunch of land and also own the minerals then $1000 per acre is a pretty good influx of cash. So I'd argue landowners will make money while the oil companies spend a bunch of cash at risk of busting their pick (oilfield lingo) if they find 90% water cuts. Owning lots of land and the minerals is a good thing. You just sit and wait. And if the oil company hits it doubles your pleasure and doubles your fun.
Posted on 8/26/19 at 9:49 am to Gray12
quote:
Austin Chalk
This is in no way new.
Posted on 8/26/19 at 9:55 am to Gray12
They need to get busy and find a way to produce from that brown dense shale.
Posted on 8/26/19 at 9:55 am to Gray12
Posted on 8/26/19 at 9:58 am to Gray12
quote:
Gray12
sigh
Posted on 8/26/19 at 9:59 am to aTmTexas Dillo
quote:
Well if you own a bunch of land and also own the minerals then $1000 per acre is a pretty good influx of cash. So I'd argue landowners will make money while the oil companies spend a bunch of cash at risk of busting their pick (oilfield lingo) if they find 90% water cuts. Owning lots of land and the minerals is a good thing.
I didn't suggest otherwise BUT an "influx of cash" and getting rich are not the same thing.
I have mineral rights on some land in ND; the family sold the land years ago but retained all of the mineral rights forever.
Posted on 8/26/19 at 10:01 am to aTmTexas Dillo
I got me a half an acre right up in the middle
Posted on 8/26/19 at 10:02 am to Gray12
We are in the planning process for a pad for conoco in the chalk. I'll let the board know how it goes.
Posted on 8/26/19 at 10:02 am to Gray12
quote:
Baws, Louisiana may get rich again
You misspelled politicians
Posted on 8/26/19 at 10:04 am to Wtodd
quote:
I have mineral rights on some land in ND; the family sold the land years ago but retained all of the mineral rights forever.
Yes, mineral rights and surface rights (land) are two different things. Imagine owning 2000 acres of surface under a hot play where lease bonus goes to the heirs of the family that sold the land to you. You should hold on to the mineral rights in ND unless it is to your advantage to sell it. But that is a business decision.
Posted on 8/26/19 at 10:05 am to Gray12
My Dad has been waiting for this and/or the Tuscaloosa to hit for years
I doubt he (or we) will ever see any payday from either
I doubt he (or we) will ever see any payday from either
Posted on 8/26/19 at 10:06 am to Gray12
Aren't you the guy that couldn't hack it as a shale baw out in west texas ?
Posted on 8/26/19 at 10:09 am to Captain Crackysack
I’m still here in West Texas. Surviving lay-off after lay-off. Don’t believe me about the layoffs, check that layoffs.com website.
Lack of pipeline infrastructure and positive cash flow for smaller operators is slowing down West Texas.
Lack of pipeline infrastructure and positive cash flow for smaller operators is slowing down West Texas.
Posted on 8/26/19 at 10:13 am to aTmTexas Dillo
quote:
You should hold on to the mineral rights in ND unless it is to your advantage to sell it. But that is a business decision.
We've had offers but we've turned them down. IF they offered 7/8 figures we'd probably take it but we're not in a hurry and we can "will" to the kids/grandkids.
Posted on 8/26/19 at 10:22 am to Nado Jenkins83
quote:
We are in the planning process for a pad for conoco in the chalk. I'll let the board know how it goes.
Can you say location?
Posted on 8/26/19 at 10:22 am to Gray12
quote:
Vernon
I can't wait for Billy Goat Hill to return to its prime!
Posted on 8/26/19 at 10:23 am to Gray12
Chalk is a pipe dream
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