Cline Shale News

The Tall City area straddles the Horseshoe Atoll (Penn Reef complex) - on the reef / atoll, the Cline is non existent since it high to the Cline depositional basin.

The other half of the Tall City block only has a very thin Cline section - the thickest part of the Cline Shale basin would be starting in southern Howard Co and then into Glasscock County.

As for the Tall City purchase, just another big number (per net mineral acre) purchase by an operator / entity that wants to get into this area. Other big recent buyers include EnCana (Athlon), Diamondback (Cobra), OXY (Three Rivers), Rock Oil (Linn) and a few others.

Expect more announcements of new deals with packages from Big Star, Endeavor and Finley on the market or in some form of closing as we speak.

First Titan is a chronic news release company - always trying to pump up their stock. The most "classic" release was 12-18 months ago when they put out a release saying that they were attending NAPE in Houston to expose themselves to world class deals.

Pretty ridiculous in my opinion.

Athlon sold while oil was high. Are the properties sold on proven developed and undeveloped reserve numbers? How much of a haircut will companies take now vs if they had sold when Athlon did?

Depends on the property and the buyers (no straight answer here). Proved developed and proved behind pipe get PV10-12 value - then the acreage will be valued based on number of economic benches.

The Rock Oil and Diamondback deals in Howard Co traded at around $30,000 per net acre earlier this year - not much lower than the EnCana deal.

Depending on the area and number of benches, anywhere from $10,000 to $30,000 per net acre is to be expected IMO

Wow. Very interesting. Thank you.

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjA0ODA5fENoaWxkSUQ9MzE1OTE1fFR5cGU9MQ==&t=1

Slides 31-32, etc… are very interesting. The Wolfcamp “D”/Cline geologic formation in comparison to the other Wolfcamp formation benches is shifting my view, but this jibes with what people have been posting for quite awhile, too.

Ralpr

http://investors.pxd.com/mobile.view?c=90959&p=irol-irhome

December 2015 Investor Presentation - FYI.

Ralpr

Hello Friends!

Three benches or zones in the Spraberry, Wine Rack Well Spacing? There’s hope!

Cheers!

Ralpr

The Permian Basin: The Lower Spraberry May Yield Three Benches $QEP http://www.seekingalpha.com/article/3970273

Thanks for the article. With the wells already drilled on my land in steep decline I love the idea of coming back with a wine rack approach. There has been lots of seismic study activity in the area I am wondering if it is related.

Some operators are using very high density 3D to evaluate the geomechanical properties of these unconventional targets - brittleness and related factors.

The recently completed CGG shoot in Howard Co is one of these high tech shoots

Ralph; Tall City Exploration did a 3D seismic on their leases in Howard and Borden Counties in 2015 before selling those to Moss Creek Resources.Surge Energy is the operator. Tall City has a presentation done in 2014 showing 4 pay zones in their area with a possibility of 64 wells per section. Tallcityexploration.com/pdf/ADAM

Surge Energy has started with their drilling program in these two counties in 3/16 with two rigs drilling.

Hi Ralpr, that phx.corporate link errors out, Can you post the slides? Or repost the valid link? Thanks!

Tall City Exploration which had properties in Howard and Borden Counties which they sold to Moss Creek Resources, operator Surge Energy. Tall City has a presentation that shows possible 4 pay decks with a possibility of 64 wells per section. Tallcityexploration.com/pdf/ADAM Surge has started their drilling program of horizontal wells in these counties in 3/16 and currently drilling with 2 rigs.

https://www.usgs.gov/news/usgs-estimates-20-billion-barrels-oil-texas-wolfcamp-shale-formation

Wolfcamp is enormous! Great News folks on the Wolfcamp. I’m sure you’ve heard about it in the news, but here’s the USGS write-up - FYI.

Cheers!

Ralph

Great news Ralpr!

Thanks M Hall!

I guess that should put to rest any argument as to whether to oil is there or not.

LOL! This is without even including the Wolfcamp in the Central Basin Plateau, or the Delaware Basin (Leonard is considered it’s equivalent formation in the Delaware Basin). So, in my opinion, there’s a lot more to this story - a lot more. Oil that is… Texas Tea!

http://www.oilandgasinvestor.com/mission-laredo-wolfcamp-wells-exceed-expectations-1448701

FYI - Wolfcamp and Cline Laredo Petroleum article in “The Oil and Gas Investor”

Ralph (Ralpr)

Just drove by Chapman 21 lease and saw major pad and pit building going on. It appears to me to be at least 4 horizontal wells going in. Does anyone know what is goin on? Clint I have been watching you post and I don’t remember seeing any new permits.