Adams County, MS oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
BATON ROUGE, La. — Energy companies are reporting encouraging test results from the Tuscaloosa Marine Shale across the span of central Louisiana, the state’s natural resources chief says.
According to The Advocate, Devon Energy Corp. has reported an initial test of 120 barrels a day in its first completed horizontal well in East Feliciana Parish. Indigo Minerals LLC has reported that its Rapides Parish well’s initial production was 540 barrels a day.
Department of Natural Resources Secretary Scott Angelle said there is more work to be done to determine how far petroleum explorers will go with investments.
Amelia Resources LLC president Kirk Barrell said 10 to 20 wells will be needed before the industry can best determine how to produce in the formation. The shale spans the central part of the state. Researchers have said it may contain as much as 7 billion barrels of oil.
Companies will need to determine how many stages of a process called hydraulic fracturing, or fracking, are needed and how best to perform that task, Barrell said. In fracking, drillers force millions of gallons of water, sand and chemicals under high pressure into the formations to make cracks in the shale. The sand props the cracks open, releasing the oil.
The process has been questioned by environmentalists who fear groundwater contamination.
While a well’s initial production rate is important, another key to measuring performance is the first year of the well’s production, Barrell said.
In general, a shale well’s production drops 70 percent to 80 percent over the first 12 months, Barrell said. The bulk of the well’s production occurs during the first two to three years of operation.
Indigo Minerals and Devon have each leased more than 240,000 acres in the formation.
Devon recently reported that it is near the target depth on another Tuscaloosa Marine Shale well in Tangipahoa Parish, and the company has obtained permits for two wells in the formation in East Feliciana Parish.
Encana Corp., one of the major players in north Louisiana’s Haynesville Shale natural gas formation, also announced it has reached target depth on a horizontal Tuscaloosa Marine Shale well in St. Helena Parish. But Encana has not yet reported initial production figures.
This article, in case you haven’t seen it, is part of the “big” picture relative to where our country is heading in quest for energy independence and in flight from its dependence on foreign oil. Isn’t that exciting that we are finally heading away from the Middle East and spending those daily billions locally? What’s even more exciting is that we, in the Tuscaloosa Marine Shale, are part of that “big” picture. Hopefully, everyone involved in this whole process will prosper!
Oil production from the Eagle Ford formation in Texas will increase to 421,000 barrels a day by 2015, said John O’Shea, chief executive officer of Tradition Midstream LLC.
“This crude is coming on like gangbusters,” O’Shea said during a talk at the Argus Americas Crude Summit in Houston. “Domestic crude is going to displace imports over the next decade.”
North American oil supply will grow 1.7 percent annually over the next 25 years and imported crude could fall 47 percent in 2012, according to O’Shea.
If you really want to know if there is leasing going on in your parish or county, there's no better way than to pay a short visit to your Chancery Clerk's office at your local Courthouse and you will find out very quickly whether or not there is anything going on in your area.
I'll bet that there is plenty going on if you live or own property in the Tuscaloosa Marine Shale area. Amite County is one of the "hot" ones.
What's going on here folks is very simalar to what happened at Orlando FL in the mid 1970's when Disney was buying up land, in small chunks, using multiple real estate agencies, at distressed prices until they had filled their needs and then announcing their building of Disney World!
You not going to hear much about this fabulous discovery until the land is nearly all leased.
This is exactly what has happened across central Lousiana over the past two years when companies like Devon, Densbury, Amelia, Indigo and scores of others have been working daily to accumulate leases for $175 to $185/acre. These leases, containg in excess of 2.5 million acres have been recently sold to the Chinese, French and other governments and foreign companies for $5,000 per acre PLUS other extremely valuable considerations. Wow! Huh?
The landmen started six months or more ago moving into Mississippi, the last of the unleased mineral rights. They work the land quietly, methodically and with well organized mapped out plans. Its not unusual to see a team of 8-12 landsmen from one leasing company working out of one courthouse.
When you go to the courthouse you can chat with any of these landmen. They will be happy to talk to you. Talk to as many as possible!
Don't give your land away, friend, to some oil company in order for them to make a fortune from it. Share it with them!
We had so many landmen working out of one of our nearby courthouses that there nearly was a riot and the sheriff's deparment had to be called in.
Be vigilant, smart and move quickly or very slowly depending on what your instincts tell you...Good luck!
Bob Buie Sr
WHAT DID YOU GET PER ACRE IN BONUS? Read this.........
Devon Energy and Sinopec (China) have inked a joint-venture (JV) deal worth $2.2 billion for a 1/3 interest in Devon’s acreage across five new venture plays. Devon is selling an interest in 1.2 million net acres for a little more than $5,000 per acre across several emerging plays including the Tuscaloosa Marine Shale(TMS)
GOOD FRACING NEWS...THE EPA HAS APPROVED A NEW "GREEN" SOLUTION FOR FRACING THAT HOPEFULLY WILL RID US OF THE POSSIBLE ENVIRONMENTAL PROBLEMS WITH INJECTION LIQUIDS USED IN THE HORIZONTAL DRILLING PROCESS.
THIS IS GREAT NEWS!!!