# Cline Shale News: Good, Bad, and Ugly
**URL:** https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808
**Category:** Cline Shale
**Created:** [September 21, 2013, 9:28pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808 "2013-09-21T21:28:28Z")
**Posts on this page:** 20
**Page:** 3
### Author:  [@Ralph\_T](https://www.mineralrightsforum.com/u/Ralph_T)
#### Post date: [May 10, 2015, 6:12pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/42 "2015-05-10T18:12:18Z")
Both are worth the time…
Art Berman’s lecture is about 63 minutes before a Q&A.
The second is about 47 minutes.
As always, please listen to what the other guy is saying about a topic. Use his data to confirm or disprove your own assessments and assumptions. Thanks AJ
AJ said:
Years Not Decades: Proven Reserves of the Shale Revolution
Houston Geological Society - February 23, 2015
[ ](https://www.youtube.com/watch?v=5Ae1fg44l7E)
The Shocking Data Proving Shale Oil Is Massively Over-Hyped
[ ](https://www.youtube.com/watch?v=dk1m7aFGwb0)
---
### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 11, 2015, 5:10am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/43 "2015-05-11T05:10:33Z")
U.S. Oil Shales: Breakeven Oil Price Is A Tricky Concept
A reason for this variability of estimates is that “breakeven oil price” and “breakeven economics” are tricky terms that may mean a variety of things.
The risk of confusion can be illustrated by looking at the following three definitions of breakeven oil prices:
- Well-level breakeven price: The minimum price of oil that renders a new well in the play NPV-neutral (i.e., by drilling the well, the operator can expect a return on investment at least equal to its cost of capital);
- Company-level breakeven price: The price of oil that allows the operator to grow production at a minimally acceptable growth rate (for example, mid- to high-single digits) without increasing its debt;
- Industry-level breakeven price: The price of oil that allows the entire industry to sustain its market share.
* * *
You are welcome!
Ralph T said:
Both are worth the time…
Art Berman’s lecture is about 63 minutes before a Q&A.
The second is about 47 minutes.
As always, please listen to what the other guy is saying about a topic. Use his data to confirm or disprove your own assessments and assumptions. Thanks AJ
AJ said:
Years Not Decades: Proven Reserves of the Shale Revolution
Houston Geological Society - February 23, 2015
[ ](https://www.youtube.com/watch?v=5Ae1fg44l7E)
The Shocking Data Proving Shale Oil Is Massively Over-Hyped
[ ](https://www.youtube.com/watch?v=dk1m7aFGwb0)
---
### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 21, 2015, 2:45pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/44 "2015-05-21T14:45:46Z")
‘Shale-ionaires’ Suffering from Wave of Bankrupt Oil Drillers
"Clint Liles, 73, a frequent poster on “Mineral Rights Forum,” an online chatroom for private citizens coping with the complexities of oil and gas leases, often dispenses advice to royalty owners. Liles thinks he’ll be getting busier as more drillers face down bankruptcy.
“I’ve had several people call me or message me,” Liles said by telephone from his West Texas ranch. “These oil companies - it’s hard to figure out what they’re going to do.”
---
### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 24, 2015, 9:02pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/45 "2015-05-24T21:02:41Z")
[http://pbog.zacpubs.com/taking-the-pulse/](http://pbog.zacpubs.com/taking-the-pulse/)
Seismic’s earthshaking technologies enter a new era.
---
### Author:  [@Richard\_Pruitt](https://www.mineralrightsforum.com/u/Richard_Pruitt)
#### Post date: [May 25, 2015, 9:04pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/46 "2015-05-25T21:04:02Z")
AJ thank you for this article, very interesting. Dawson has been conducting a seismic for Tall City on our acreage in Borden County. Tall City has completed 13 wells in the Howard and Borden County area. Looking forward for Tall City to start drilling again which either the price of oil rises or vendor prices come down. We currently have two more wells permitted in our area with one well already producing.
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 25, 2015, 9:13pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/47 "2015-05-25T21:13:14Z")
You are welcome, Richard. Glad to hear there is activity on your acreage.
Richard Pruitt said:
AJ thank you for this article, very interesting. Dawson has been conducting a seismic for Tall City on our acreage in Borden County. Tall City has completed 13 wells in the Howard and Borden County area. Looking forward for Tall City to start drilling again which either the price of oil rises or vendor prices come down. We currently have two more wells permitted in our area with one well already producing.
---
### Author:  [@Rock\_Man](https://www.mineralrightsforum.com/u/Rock_Man)
#### Post date: [May 25, 2015, 10:35pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/48 "2015-05-25T22:35:54Z")
There are rumors that another seismic firm is planning a 300+ square mile 3D north Big Spring in Howard County. Could be tied to several companies including EnCana, Oxy, and Diamondback.
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 26, 2015, 12:12am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/49 "2015-05-26T00:12:12Z")
Any idea how much this would cost per section? $10,000? $100,000?
Can seismic distinguish between water and oil?
Rock Man said:
There are rumors that another seismic firm is planning a 300+ square mile 3D north Big Spring in Howard County. Could be tied to several companies including EnCana, Oxy, and Diamondback.
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### Author:  [@Rock\_Man](https://www.mineralrightsforum.com/u/Rock_Man)
#### Post date: [May 26, 2015, 3:23pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/50 "2015-05-26T15:23:00Z")
Probably $50-$60,000 per square mile permitting through processing. As for O&G vs water differentiation, most probably not in these hard consolidated rocks. Two fold purpose for this 3D as I see it - details on structure and possible faulting but most importantly to ID variability in rock properties (e.g. brittleness).
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 29, 2015, 3:08am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/51 "2015-05-29T03:08:40Z")
As always, Rock Man, thank you for sharing your knowledge and insights.
Rock Man said:
> Probably $50-$60,000 per square mile permitting through processing. As for O&G vs water differentiation, most probably not in these hard consolidated rocks. Two fold purpose for this 3D as I see it - details on structure and possible faulting but most importantly to ID variability in rock properties (e.g. brittleness)
---
### Author:  [@Rock\_Man](https://www.mineralrightsforum.com/u/Rock_Man)
#### Post date: [May 29, 2015, 3:14am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/52 "2015-05-29T03:14:42Z")
Did you or others see the announcement this week about Ring’s purchase of a Delaware Basin property in Reeves and Culberson County? Believe it is the Finley Resources block that was up for sale.
Big step out for them away from the Central Basin Platform.
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 29, 2015, 3:19am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/53 "2015-05-29T03:19:22Z")
The following link is to a pdf of an investment package. It is chock full of information including itemized drilling and completion costs for a prospect which appears already to have been drilled. I am not affiliated with the company and am sharing the document for information purposes only.
[http://www.bigstaroil.com/pdfs/Maverick%20Combined.pdf](http://www.bigstaroil.com/pdfs/Maverick%20Combined.pdf)
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 29, 2015, 3:37am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/54 "2015-05-29T03:37:07Z")
Yes, I saw that. Ring Energy also appears to have been leasing this year in Gaines County. The Reeves-Culberson acquisition seems to be a giant step away from a “clean balance sheet” philosophy. Time will tell if bounty will have gone to the bold.
Rock Man said:
> Did you or others see the announcement this week about Ring’s purchase of a Delaware Basin property in Reeves and Culberson County? Believe it is the Finley Resources block that was up for sale.
>
> Big step out for them away from the Central Basin Platform.
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### Author:  [@Rock\_Man](https://www.mineralrightsforum.com/u/Rock_Man)
#### Post date: [May 29, 2015, 11:12pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/55 "2015-05-29T23:12:52Z")
AJ
This prospect summary is from 2013 (note “spudding first well by April 2013”) - prior to the explosion that has taken place in Howard County. Big Star O&G has moved on from drilling vertical wells to now having drilled three horizontals on their Howard County acreage.
One is reportedly making over 1200 BOPD during early post-frac flow back testing.
This is in the same area where Cobra just sold 11,000 acres to Diamondback for $438 million.
The following link is to a pdf of an investment package. It is chock full of information including itemized drilling and completion costs for a prospect which appears already to have been drilled. I am not affiliated with the company and am sharing the document for information purposes only. [http://www.bigstaroil.com/pdfs/Maverick%20Combined.pdf](http://www.bigstaroil.com/pdfs/Maverick%20Combined.pdf)
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [June 1, 2015, 9:13pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/56 "2015-06-01T21:13:08Z")
[US Shale Will Not Bounce Back At Current Prices](http://oilprice.com/Energy/Crude-Oil/US-Shale-Will-Not-Bounce-Back-at-Current-Prices.html)
By [Leonard Brecken](http://oilprice.com/contributors/Leonard-Brecken) Posted on Mon, 01 June 2015 17:13
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [June 2, 2015, 7:28pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/57 "2015-06-02T19:28:45Z")
[http://www.rock-drill-bit.com/history-of-oil.html](http://www.rock-drill-bit.com/history-of-oil.html)
…The gusher at Spindletop was drilled on January 9, 1901, near Beaumont, Texas. This oil well was NOT the first attempt by man to harness the earth’s petroleum. For instance, the first North American oil well was drilled in 1858 in Ontario, Canada, and one in the United States in 1859 at Titusville, Pennsylvania to a depth of 69 feet.
However, most people don’t realize that the history of oil actually began in China in 347 A.D. At this time, the Chinese drilled for oil to depths of up to 800 feet. How? A type of drill bit was attached to the end of bamboo poles. Black gold was also known as “burning water” in the 7th century A.D. in Japan.
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [June 13, 2015, 10:03pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/58 "2015-06-13T22:03:27Z")
[Crain’s Rules For Visual Analysis of Logs](https://www.spec2000.net/01-crainsrules.htm)
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [June 19, 2015, 5:21am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/59 "2015-06-19T05:21:03Z")
Oil Set for 2nd Weekly Gain as U.S. Supply Counters Saudi Output
Small U.S. frackers face extinction amid drilling drought
The Shale Industry Could Be Swallowed By Its Own Debt
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [July 10, 2015, 6:06am UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/60 "2015-07-10T06:06:51Z")
> **[Boone Pickens: Why I’m standing by $70 oil by year end](https://www.cnbc.com/2015/07/09/boone-pickens-why-im-standing-by-70-oil-by-year-end.html)**
>
> Energy entrepreneur Boone Pickens tells why he still thinks oil will hit $70, or higher, by the end of the year.
Boone Pickens: Why I’m standing by $70 oil by year end
“Currently, 93 million barrels a day of oil is produced globally, he said, with more than 9 million coming from the U.S. and 31 million coming from OPEC. That leaves about 50 million barrels of oil coming from other sources, including Russia, said Pickens, and he expects a 5 percent to 6 percent decline in that 50 million barrels.”
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [July 13, 2015, 8:02pm UTC](https://www.mineralrightsforum.com/t/cline-shale-news-good-bad-and-ugly/12808/61 "2015-07-13T20:02:48Z")
?!
# [SECOND WAVE OF U.S. OIL BOOM WILL BANKRUPT OPEC](http://www.breitbart.com/big-government/2015/07/08/second-wave-of-u-s-oil-boom-will-bankrupt-opec/)
The U.S. “fully burdened exploration and production “break-even” cost is now $51 per barrel, and falling fast. Furthermore, with hundreds of American oil companies having already paid the exploration lease acquisition costs to accumulate tens of thousands of drilling sites, the production-only break-even cost for positive cash-flow is about $29 a barrel. After tacking on a 9 percent profit, U.S. domestic oil companies are now incentivized to produce domestic oil any time the price is above $32 a barrel.
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