A few minor Earthquakes hit Texas last night, Dallas and Fort Worth area...near the Barnett Shale.
A 2.5-magnitude earthquake at 11:25 p.m. Thursday near Grand Prairie and a 3.0-magnitude quake was recorded at 12:01 a.m. today in Irving Texas, the U.S. Geological Survey said.
A 3.1 quake was reported about 11:30 a.m. Thursday near McCloud, Oklahoma, 180 miles north of the Dallas Tx area. No injuries or damage were reported there.
Friday, October 31, 2008
Thursday, October 30, 2008
Haynesville Shale: Leasing Prices and Mineral Rights Update
As I updated my www.oilshalegas.com website each quarter, I always like to dig deep into these conference calls to see what the CEO's out there are saying. You can really get some interesting comments. The following is from Seeking Alpha from the Range Resources RRC CEO John Pinkerton on the Haynesville Shale and Mineral Rights leasing.
I think there's been a huge amount of discussion in terms of what's happened with acreage prices throughout some of these shale plays, and to me it makes absolute sense. I think when we all went on vacation in June to the beach, gas prices were $12, $13 and we were feeling all great. By the time we get our kids in school, they were less than $8 going down. So clearly what's happened is I think the industry responded in the way that you would think in that acreage prices have plummeted. I think the classic example is the Haynesville where you had complete hysteria, prices going up to $30,000 an acre for trend trend acreage which is unbelievable. I think a lot of those companies have shut down, and now you can get acreage in the Haynesville for $5,000 or less. And the same thing, not clearly that volatile, but in the Barnett, we see acreage coming down maybe as much to half or maybe even two-thirds as what it cost during the height of the land grab.
The good news is and we've gone out of our way to give you both what the cost was in 2008 so far and we continue to lease and what we got from inception, and the good news is that the Marcellus never quite hit those kinds of frothy prices. We've heard prices as high in the Marcellus as $5,000, $6,000, $7,000 an acre. We haven't paid that. We might have paid for five acres offsetting one of our drill sites, just to get somebody that was just being obstinate. But they've never really gone that high. The good news is that given the size of the Marcellus, there's still lots of acreage to pick up but we just got to be careful and we'll continue to be careful. We haven't bought any trend acreage, what we call just rank trend acreage in the Marcellus this year
I think there's been a huge amount of discussion in terms of what's happened with acreage prices throughout some of these shale plays, and to me it makes absolute sense. I think when we all went on vacation in June to the beach, gas prices were $12, $13 and we were feeling all great. By the time we get our kids in school, they were less than $8 going down. So clearly what's happened is I think the industry responded in the way that you would think in that acreage prices have plummeted. I think the classic example is the Haynesville where you had complete hysteria, prices going up to $30,000 an acre for trend trend acreage which is unbelievable. I think a lot of those companies have shut down, and now you can get acreage in the Haynesville for $5,000 or less. And the same thing, not clearly that volatile, but in the Barnett, we see acreage coming down maybe as much to half or maybe even two-thirds as what it cost during the height of the land grab.
The good news is and we've gone out of our way to give you both what the cost was in 2008 so far and we continue to lease and what we got from inception, and the good news is that the Marcellus never quite hit those kinds of frothy prices. We've heard prices as high in the Marcellus as $5,000, $6,000, $7,000 an acre. We haven't paid that. We might have paid for five acres offsetting one of our drill sites, just to get somebody that was just being obstinate. But they've never really gone that high. The good news is that given the size of the Marcellus, there's still lots of acreage to pick up but we just got to be careful and we'll continue to be careful. We haven't bought any trend acreage, what we call just rank trend acreage in the Marcellus this year
Barnett Shale: Range Resources RRC Update 10/30/08
Range Resources came out with earning last week and updated its investors on their Barnett Shale drilling operations:
In the Fort Worth Basin, third quarter activity was highlighted by drilling success in Hood County where a seven-well package averaged 11.4 days from spud to rig release and achieved average initial production of 2.0 Mmcfe per day per well. These wells were drilled and completed for $1.9 million per well. The effort has been extended onto a new 3,000 acre block immediately adjacent where Range plans to actively drill and complete additional wells. The first two wells on this new acreage block have been completed with initial rates averaging 2.6 Mmcf per day. In southwestern Tarrant County, the Company has spud a 250 foot spaced pilot and is participating in a 330 foot spaced development well in northwestern Ellis County.
In the Fort Worth Basin, third quarter activity was highlighted by drilling success in Hood County where a seven-well package averaged 11.4 days from spud to rig release and achieved average initial production of 2.0 Mmcfe per day per well. These wells were drilled and completed for $1.9 million per well. The effort has been extended onto a new 3,000 acre block immediately adjacent where Range plans to actively drill and complete additional wells. The first two wells on this new acreage block have been completed with initial rates averaging 2.6 Mmcf per day. In southwestern Tarrant County, the Company has spud a 250 foot spaced pilot and is participating in a 330 foot spaced development well in northwestern Ellis County.
Haynesville Shale: SSEY Spuds 2nd Well 10/30/08
South Star Energy ( SSEY ) has come out with news today, 10/30/08, saying that they have spudded their second Haynesville Shale well.
The Company recently announced a successful Haynesville Shale well discovery from its Atkins-Lincoln 17-2 in the Sentell Field. This news is a significant strategic milestone for the Company, further demonstrating its ability to deliver positive results, even during a period of historically unique market conditions within the E & P sector.The Company remains focused on delivering operational success and building shareholder value through solid growth of both reserves and production rates. In light of the successful Haynesville test at the Atkins-Lincoln 17-2 location, the Company spudded the Burt 20-1 Well on October 25, 2008 as a second Haynesville test in the Sentell Field. This well is located in the southwest section of the Company's acreage position and is designed to demonstrate the quality and extent of the Field's Haynesville potential. In addition, the Company continues to examine the objectives of its current drilling program to balance both Cotton Valley and Haynesville development.
The Company is actively working with its senior lender, Macquarie Bank Limited, on balancing the Company's priorities between its Cotton Valley development objectives and actively building on its Haynesville discovery.
http://oilshalegas.com
The Company recently announced a successful Haynesville Shale well discovery from its Atkins-Lincoln 17-2 in the Sentell Field. This news is a significant strategic milestone for the Company, further demonstrating its ability to deliver positive results, even during a period of historically unique market conditions within the E & P sector.The Company remains focused on delivering operational success and building shareholder value through solid growth of both reserves and production rates. In light of the successful Haynesville test at the Atkins-Lincoln 17-2 location, the Company spudded the Burt 20-1 Well on October 25, 2008 as a second Haynesville test in the Sentell Field. This well is located in the southwest section of the Company's acreage position and is designed to demonstrate the quality and extent of the Field's Haynesville potential. In addition, the Company continues to examine the objectives of its current drilling program to balance both Cotton Valley and Haynesville development.
The Company is actively working with its senior lender, Macquarie Bank Limited, on balancing the Company's priorities between its Cotton Valley development objectives and actively building on its Haynesville discovery.
http://oilshalegas.com
Wednesday, October 29, 2008
Haynesville Shale: Encore ( EAC ) 10/29/08 Drilling Update
Encore Acquisition ( EAC ) has come out and updated Shareholders on their progress on the Haynesville Shale.
The Stockman Field in East Texas continues to outperform the Company's expectations.Four new Travis Peak wells were brought online in the quarter with an average IP of 3.6 MMcfe/D. The most recent well, the Wheeler 3, completed the second stage fracture stimulation in the Travis Peak at a gross peak rate of 6.2 MMcf/D and 90 Bbls/D.
The Company plans to spud its first Haynesville shale well in November 2008 at the Greenwood Waskom field. This well is expected to be online in the first quarter of 2009.
http://www.encoreacq.com/releasedetail.cfm?ReleaseID=343641
The Stockman Field in East Texas continues to outperform the Company's expectations.Four new Travis Peak wells were brought online in the quarter with an average IP of 3.6 MMcfe/D. The most recent well, the Wheeler 3, completed the second stage fracture stimulation in the Travis Peak at a gross peak rate of 6.2 MMcf/D and 90 Bbls/D.
The Company plans to spud its first Haynesville shale well in November 2008 at the Greenwood Waskom field. This well is expected to be online in the first quarter of 2009.
http://www.encoreacq.com/releasedetail.cfm?ReleaseID=343641
Horn River Shale - Nexen ( NXY ) Canada Shale Update
This morning, Nexen ( NXY ) has come out with earnings and updated investors on their Horn River Shale.
Following the success of last winter's drilling program in the Horn River basin in northeast British Columbia, we decided to drill two horizontal wells this summer. The wells have been drilled and are being fraced. The results from these wells will be taken into consideration as we plan our upcoming winter program for the area.This shale gas play has the potential to become one of the most significant shale gas plays in North America. It has been compared to the Barnett Shale in Texas by other operators in the area as it displays similar rock properties and play characteristics.
We have approximately 88,000 acres in the Dilly Creek area of the Horn River basin with a 100% working interest. As previously announced, we estimate these lands contain between 3 and 6 trillion cubic feet (0.5 to 1.0 billion barrels of oil equivalent) of recoverable contingent resource which could double our total proved reserves. Further appraisal activity is required before these estimates can be finalized and commerciality established.
http://oilshalegas.com
Following the success of last winter's drilling program in the Horn River basin in northeast British Columbia, we decided to drill two horizontal wells this summer. The wells have been drilled and are being fraced. The results from these wells will be taken into consideration as we plan our upcoming winter program for the area.This shale gas play has the potential to become one of the most significant shale gas plays in North America. It has been compared to the Barnett Shale in Texas by other operators in the area as it displays similar rock properties and play characteristics.
We have approximately 88,000 acres in the Dilly Creek area of the Horn River basin with a 100% working interest. As previously announced, we estimate these lands contain between 3 and 6 trillion cubic feet (0.5 to 1.0 billion barrels of oil equivalent) of recoverable contingent resource which could double our total proved reserves. Further appraisal activity is required before these estimates can be finalized and commerciality established.
http://oilshalegas.com
Tuesday, October 28, 2008
I bought Oil today ( USO ) 10/28/08 - Bullish on Oil
Why did I buy Oil today? If stocks are going to rip higher you better believe these commodities that have gotten crushed will come back as well. Oil is overdue for a bounce and most of the Oil related stocks took off and the end of the day today. I bought the USO at $52 and I see it is running up afterhours over $53.
Yes, I am bullish on Oil once again!
Yes, I am bullish on Oil once again!
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