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A good place to post Cline Shale (now also known as Wolfcamp D and Lower Wolfcamp) news to keep us all informed.

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Shale for Sale: Looking Beyond the Buzz in the Cline

 April 11, 2013 | 6:00 AM

By Mose Buchele

 

 

Right now, there’s a lot excitement over different shale formations across Texas and across the country. But along with excitement, there sometimes comes hype.

 

First there was the Barnett near Fort Worth and Pennsylvania’s Marcellus. In South Texas you’ve got the Eagle Ford. North Dakota taps the Bakken. It seems like everywhere you look, drillers are finding shale formations that might be the “next big thing” for the American energy industry. (Shale formations are layers of rock that companies can sometimes drill for oil and gas using hydraulic fracturing, or fracking.) Recently the “next big thing” being touted is the Cline Shale in the Permian Basin of West Texas.

 Listen to the Radio StoryMose Buchele reports on the “next big thing”Download

 

The Cline Shale lies more than 9,000 feet underground and many in the energy business expect it to bring the next oil and gas boom to West Texas.

 

But how big of a boom?

 

The entire formation of the Cline Shale spans nearly 10,000 square miles and could have up to 3.6 million barrels of obtainable oil per square mile.

 

But not everybody is convinced. Art Berman is an oil and gas geological consultant and prominent critic of some drilling companies.

 

“The analogy that I like to use is the traveling circus,” Berman said. “Why does a circus have to travel? Well, because after it’s been in the town for a couple days, or a week or so, all the townspeople begin to understand that the bearded lady doesn’t really have a beard!”

 

Berman said each new shale discovery serves as a way for some companies to inflate their stock values. So all that hype might have to do more with Wall Street than what’s in the ground. But it’s not just industry critics that are tamping down enthusiasm over the Cline.

 

Ben Shepperd, President of the Permian Basin Petroleum Association, says there’s great potential in the Cline Shale.

 

But, “number one, it’s not going to happen over night,” he said. “The operating community hasn’t identified [or] cracked the code on how to access it routinely,” he added.

 

By code, Sheppard was referring to the geology of the region and the hydraulic fracturing techniques necessary to maximize the recovery rates.

 

Then there are those figures about the millions of barrels of oil that could be deep underground. They come from estimates from Devon Energy. Chip Minty, a spokesperson for the company, says those estimates were actually based on best case assumptions, scenarios where “everything works out perfectly.”

 

“And we all know that nothing ever works out perfectly. Best case scenarios are highly unlikely. So we are approaching this realistically,” Minty said.

 

 

Chesapeake Energy, another big oil and gas player, actually sold most of its holdings in the Cline Shale last year. It has no plans to develop the land it still owns, according to a spokesperson. Yet West Texas communities are still abuzz over the Cline’s potential, and local companies are turning that enthusiasm into profit.

 

Blake Templeton runs a group called LubbockInvest.com. His company has used the Cline to generate interest in real estate investment in the region. He says business is booming. StateImpact Texas asked Templeton what would happen if the Cline doesn’t deliver on its promises.

 

“In a boom and bust oil town, the paradigm shift has shifted, it’s changed. The variables are constants,” Templeton said. “What I would say is you still own a tangible asset.”

 

It would just be worth significantly less if the projected boom ends up going bust

I understand the concern. I own land leased in the Louisiana Austin Chalk where a 6000 BOE per day well was completed and tested. There was a lot of hype then rapid decline in production. Anadarko has let the rest of its drilling permits expire and has left the area. The difference here in the Cline Shale is I have personaly seen hundreds of new drilling pads constructed. so many fracking water ponds that I can not count. Man camps being constructed everywhere, etc. and it goes on and on. I have not seen this kind of activity since Baton Rouge was the fastest growing city in the U.S. in the months after Hurricane Katrina. The poeple here tell me previous oil booms pale in comparison.
If this is real it would be in the best intrest of industry geoligist to try to keep enthusiasm dampened. I can tell you industry officials here in the Cline will not speak of what is going on but I can see it with my own eyes.
 

Thanks a bunch Craig. The news about Chesapeake is disturbing to me.

Ralpr

That would bother me if I did not see what is happening in the Haynesville Shale. This was Chesapeakes grand slam and they are letting leases expire and not even completing wells that they have drilled. Trouble in the board room I suspect.

Ralpr said:

Thanks a bunch Craig. The news about Chesapeake is disturbing to me.

Ralpr

The scuttlebutt on the ground is that no one really wants to work for Chesapeake. They started out okay in the Barnett, but they have made some major missteps. Hubby won't even consider working for them as some of his friends in the field have...and decided never again.

Chesapeake wasn't chasing Cline shale; they were targeting Mississippian.  Drilled two wells with a partner (Crown) then sold out.  Read the news Chesapeake is selling everything they can.

SWEETWATER — They have been meeting every month since late last year, but a group of concerned residents, economic developers, local and state government officials now have an umbrella organization that will serve as a funnel for information about anything regarding the Cline Shale, its effect, and how to get ready for what many are calling the “big boom.”

 

More than 200 people attended the maiden luncheon and meeting of the Cline Shale Alliance at Texas State Technical College in Sweetwater on Friday, many with a desire to learn the latest developments in counties involved in the oil play.

 

The Cline formation is east of the Midland Basin, roughly 140 miles north to south and 70 miles wide, running through portions of Mitchell, Coke, Fisher, Glasscock, Howard, Irion, Nolan, Reagan, Scurry and Sterling counties.

 

Although Taylor County is not part of the drilling, its county seat, Abilene, will be a major player should the oil boom live up to its potential, said Dwain Rogers of the University of Texas at San Antonio.

 

Rogers likened Abilene’s position with that of San Antonio, a city playing a supporting role in the Eagle Ford Shale due mainly to its infrastructure. Out of the 100,000 jobs created by the Eagle Ford in that region, 20,000 are in San Antonio.

 

In his update to the alliance, Gary Robinett, director of marketing and industrial recruitment for the Abilene Industrial Foundation, said activity in the Key City has recently quadrupled.

 

Robinett said the foundation is in talks with “several companies,” industries that are and aren’t related to the oil industry, seeking a part in the grand scheme of the Cline.

 

“They want to get established here before the chaos begins,” he said after the meeting.

 

Oklahoma-based Devon Energy, a major Cline Shale stakeholder, has opened an Abilene field office, which a company official said will serve as support location for company’s exploratory rigs in the Cline and “once we start production, the office will oversee these productions.”

 

And so far, the Abilene office is the only structure the company has acquired in the area.

 

Kirk Edwards, president of Las Colinas Energy Partners and ex-chairman of the El Paso branch of the Federal Reserve Bank of Dallas, said in a recent energy summit that some of the possible pitfalls of the Cline Shale formation will be the lack of infrastructure in the area.

 

Rogers also reported the economic effect of Eagle Ford: $25 billion in 2011 and $61 billion last year. Twenty-five percent of the world’s oil rigs are located in that shale area, he said.

 

Initial estimates indicate the Cline holds 30 billion barrels of recoverable oil, which will dwarf the Eagle Ford.

 

“You are now in the ‘is this going to happen phase,’” Rogers said. “Next is the ‘oh my goodness phase.’”

 

Ronald Wade, president and chief executive officer of Trail Ridge Exploration and Production, a Grapevine-based company with 20,000 acres in eastern Scurry County, is optimistic the Cline will produce, but noted more exploration is needed just to be certain.

 

“This formation hasn’t produced economically in the past; no wells have produced in our acreage position in the past, so we don’t have a lot of offset data to go by,” Wade said. “We probably will drill three wells this year and by next year we’ll be ramping up and maybe end up drilling 20 wells.”

 

The first wells the company will be drilling are solely exploratory, “but if this truly ends up a resource play, then after about five or six wells I will call them more development kind of wells,” Wade said.

 

The usual issues were discussed, including roads, housing, water and manpower. There are reports, according to Rogers, that schools in the Eagle Ford area are losing teachers to high-paying oil field-related jobs.

 

Technical schools also are having a hard time getting and retaining instructors, especially commercial-driving teachers, because instructors are opting to use their skills in higher-paying oil field driving jobs.

 

The Cline Shale Alliance plans to bring in experts to address several issues in future meetings. The next gathering, April 30 at the Nolan County Coliseum Annex, will discuss addressing the housing shortage.

 

Several workshops also are in the planning stages, as well as bus tours that organizers call “rolling seminars” to the Cline Shale and Permian Basin areas.

 

© 2013 Abilene Reporter-News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Here is the URL to the article posted by Mr Wascom.  (Trying to keep copyrights honored...  Some message boards are very strict about plagarism and use standards.)

http://www.reporternews.com/news/2013/apr/12/cline-shale-alliance-f...

Craig Wascom said:

SWEETWATER — They have been meeting every month since late last year, but a group of concerned residents, economic developers, local and state government officials now have an umbrella organization that will serve as a funnel for information about anything regarding the Cline Shale, its effect, and how to get ready for what many are calling the “big boom.”

 

More than 200 people attended the maiden luncheon and meeting of the Cline Shale Alliance at Texas State Technical College in Sweetwater on Friday, many with a desire to learn the latest developments in counties involved in the oil play.

 

The Cline formation is east of the Midland Basin, roughly 140 miles north to south and 70 miles wide, running through portions of Mitchell, Coke, Fisher, Glasscock, Howard, Irion, Nolan, Reagan, Scurry and Sterling counties.

 

Although Taylor County is not part of the drilling, its county seat, Abilene, will be a major player should the oil boom live up to its potential, said Dwain Rogers of the University of Texas at San Antonio.

 

Rogers likened Abilene’s position with that of San Antonio, a city playing a supporting role in the Eagle Ford Shale due mainly to its infrastructure. Out of the 100,000 jobs created by the Eagle Ford in that region, 20,000 are in San Antonio.

 

In his update to the alliance, Gary Robinett, director of marketing and industrial recruitment for the Abilene Industrial Foundation, said activity in the Key City has recently quadrupled.

 

Robinett said the foundation is in talks with “several companies,” industries that are and aren’t related to the oil industry, seeking a part in the grand scheme of the Cline.

 

“They want to get established here before the chaos begins,” he said after the meeting.

 

Oklahoma-based Devon Energy, a major Cline Shale stakeholder, has opened an Abilene field office, which a company official said will serve as support location for company’s exploratory rigs in the Cline and “once we start production, the office will oversee these productions.”

 

And so far, the Abilene office is the only structure the company has acquired in the area.

 

Kirk Edwards, president of Las Colinas Energy Partners and ex-chairman of the El Paso branch of the Federal Reserve Bank of Dallas, said in a recent energy summit that some of the possible pitfalls of the Cline Shale formation will be the lack of infrastructure in the area.

 

Rogers also reported the economic effect of Eagle Ford: $25 billion in 2011 and $61 billion last year. Twenty-five percent of the world’s oil rigs are located in that shale area, he said.

 

Initial estimates indicate the Cline holds 30 billion barrels of recoverable oil, which will dwarf the Eagle Ford.

 

“You are now in the ‘is this going to happen phase,’” Rogers said. “Next is the ‘oh my goodness phase.’”

 

Ronald Wade, president and chief executive officer of Trail Ridge Exploration and Production, a Grapevine-based company with 20,000 acres in eastern Scurry County, is optimistic the Cline will produce, but noted more exploration is needed just to be certain.

 

“This formation hasn’t produced economically in the past; no wells have produced in our acreage position in the past, so we don’t have a lot of offset data to go by,” Wade said. “We probably will drill three wells this year and by next year we’ll be ramping up and maybe end up drilling 20 wells.”

 

The first wells the company will be drilling are solely exploratory, “but if this truly ends up a resource play, then after about five or six wells I will call them more development kind of wells,” Wade said.

 

The usual issues were discussed, including roads, housing, water and manpower. There are reports, according to Rogers, that schools in the Eagle Ford area are losing teachers to high-paying oil field-related jobs.

 

Technical schools also are having a hard time getting and retaining instructors, especially commercial-driving teachers, because instructors are opting to use their skills in higher-paying oil field driving jobs.

 

The Cline Shale Alliance plans to bring in experts to address several issues in future meetings. The next gathering, April 30 at the Nolan County Coliseum Annex, will discuss addressing the housing shortage.

 

Several workshops also are in the planning stages, as well as bus tours that organizers call “rolling seminars” to the Cline Shale and Permian Basin areas.

 

© 2013 Abilene Reporter-News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sorr, will post URL in the future
 
Ralph T said:

Here is the URL to the article posted by Mr Wascom.  (Trying to keep copyrights honored...  Some message boards are very strict about plagarism and use standards.)

http://www.reporternews.com/news/2013/apr/12/cline-shale-alliance-f...

Craig Wascom said:

SWEETWATER — They have been meeting every month since late last year, but a group of concerned residents, economic developers, local and state government officials now have an umbrella organization that will serve as a funnel for information about anything regarding the Cline Shale, its effect, and how to get ready for what many are calling the “big boom.”

 

More than 200 people attended the maiden luncheon and meeting of the Cline Shale Alliance at Texas State Technical College in Sweetwater on Friday, many with a desire to learn the latest developments in counties involved in the oil play.

 

The Cline formation is east of the Midland Basin, roughly 140 miles north to south and 70 miles wide, running through portions of Mitchell, Coke, Fisher, Glasscock, Howard, Irion, Nolan, Reagan, Scurry and Sterling counties.

 

Although Taylor County is not part of the drilling, its county seat, Abilene, will be a major player should the oil boom live up to its potential, said Dwain Rogers of the University of Texas at San Antonio.

 

Rogers likened Abilene’s position with that of San Antonio, a city playing a supporting role in the Eagle Ford Shale due mainly to its infrastructure. Out of the 100,000 jobs created by the Eagle Ford in that region, 20,000 are in San Antonio.

 

In his update to the alliance, Gary Robinett, director of marketing and industrial recruitment for the Abilene Industrial Foundation, said activity in the Key City has recently quadrupled.

 

Robinett said the foundation is in talks with “several companies,” industries that are and aren’t related to the oil industry, seeking a part in the grand scheme of the Cline.

 

“They want to get established here before the chaos begins,” he said after the meeting.

 

Oklahoma-based Devon Energy, a major Cline Shale stakeholder, has opened an Abilene field office, which a company official said will serve as support location for company’s exploratory rigs in the Cline and “once we start production, the office will oversee these productions.”

 

And so far, the Abilene office is the only structure the company has acquired in the area.

 

Kirk Edwards, president of Las Colinas Energy Partners and ex-chairman of the El Paso branch of the Federal Reserve Bank of Dallas, said in a recent energy summit that some of the possible pitfalls of the Cline Shale formation will be the lack of infrastructure in the area.

 

Rogers also reported the economic effect of Eagle Ford: $25 billion in 2011 and $61 billion last year. Twenty-five percent of the world’s oil rigs are located in that shale area, he said.

 

Initial estimates indicate the Cline holds 30 billion barrels of recoverable oil, which will dwarf the Eagle Ford.

 

“You are now in the ‘is this going to happen phase,’” Rogers said. “Next is the ‘oh my goodness phase.’”

 

Ronald Wade, president and chief executive officer of Trail Ridge Exploration and Production, a Grapevine-based company with 20,000 acres in eastern Scurry County, is optimistic the Cline will produce, but noted more exploration is needed just to be certain.

 

“This formation hasn’t produced economically in the past; no wells have produced in our acreage position in the past, so we don’t have a lot of offset data to go by,” Wade said. “We probably will drill three wells this year and by next year we’ll be ramping up and maybe end up drilling 20 wells.”

 

The first wells the company will be drilling are solely exploratory, “but if this truly ends up a resource play, then after about five or six wells I will call them more development kind of wells,” Wade said.

 

The usual issues were discussed, including roads, housing, water and manpower. There are reports, according to Rogers, that schools in the Eagle Ford area are losing teachers to high-paying oil field-related jobs.

 

Technical schools also are having a hard time getting and retaining instructors, especially commercial-driving teachers, because instructors are opting to use their skills in higher-paying oil field driving jobs.

 

The Cline Shale Alliance plans to bring in experts to address several issues in future meetings. The next gathering, April 30 at the Nolan County Coliseum Annex, will discuss addressing the housing shortage.

 

Several workshops also are in the planning stages, as well as bus tours that organizers call “rolling seminars” to the Cline Shale and Permian Basin areas.

 

© 2013 Abilene Reporter-News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Thanks.

My favorite news-gathering web site, www.lucianne.com, posts the first 100 words and then the rest of the story can be read by clicking the link.  It is a great web site for serious news junkies who want more than the Main Stream Media.

I just got a whopper of an offer in the mail for my shares in one oil and three gas wells. It's a small share, so was quite astounded as the offer prices raise. This one was unique in that it had a check for the amount. All I had to do was sign and notarize the enclosed transfer papers and the money was mine. Needless to say, I shredded it.

This is getting exciting! When they actually send the transfer papers and a check....you know they really, REALLY want a piece of your action! I hope no one in my family is dumb enough to sign them.

Looks like someone may have plans to drill in your unit.

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