Monday, February 20, 2012

Tuscaloosa Marine Shale - Devon Energy (DVN)

By Tim -

Devon Energy (DVN) just reported on the new emerging oil field in the U.S called the Tuscaloosa Marine Shale. The Tuscaloosa Marine Shale is located in Mississippi and Louisiana. While Devon Energy (DVN) reported some mechanical problems with their first well, the future is very bright for large oil recoveries.

In the Tuscaloosa Marine Shale, we have completed our first 2 horizontal wells in the play. The Beech Grove 68H was a short-lateral horizontal and had a series of mechanical problems but still managed to deliver a 24-hour IP of 186 barrels per day. This well is not indicative of what a properly completed long-lateral horizontal well can do in the Tuscaloosa. The second well, the Soterra 6H-1, is just starting to flow back, following the fracture stimulation. We are adding a second rig in the Tuscaloosa in March and expect to have 10 wells down in the play by year end.