Pallas Energy


#91

Dusty 1 yes the southern pipeline was built this past spring. However hiers to a neighboring estate north of my mineral interest said yes they have been in negotiations with a pipeline that is coming from Shelby down to a destination of the Tonkawa then proceed west to Ellinger Tex. It is on hold due to problem with easements. I agree Dusty 1 they put in a very large pipeline plus you need to see the impressive Tonkawa CDP. It’s very large just off Cummins Creek Rd. Check it out when you get a chance. I’ve got pics of everything and once I get it figured out ( I’m still learning LOL) I’m going to post them for y’all to see. Take care now


#92

What am I missing?

You’re saying EOG has build that big gas gathering line and has had it tied in to that gas transmission line to to the south for months but is still held up due to problems with completion of another pipeline coming to the Tonkawa from the north?

Did those neighbors say what is supposed to be carried by that other pipeline…NGL’s, crude, CO2? Doesn’t add up, definitely not anything needed to produce one well when they already have the gas line there.


#93

Good question Dusty 1 I’m going to see if they will tell me who the pipeline company is associated with but I know this, the hiers to the estate said that the pipeline from the north destination point was the Tonkawa. Maybe Dusty 1 they might have plans one day for a future processing facility?? I’ll keep you posted Dusty 1. Following this well has been a real soap opera… LOL but I’ve had a lot of fun following it during the nearly past 2 years. Take care bro.


#94

EOG just filed another permit for the Tonkawa and I thought we might finally learn something about what’s happening out there. But unless I’m missing something this was just some clean up EOG is doing related to expanding the size of the original unit to 1240 acre that they had filed in Colorado County deed records last August. Apparently they never had gotten RRC to approve that change.

The permit that’s linked below also changes the well’s field designation from Wildcat to being located in the Gidding (Austin Chalk, Gas) Field. If they are now telling RRC the Tonkawa isn’t a new discovery in a previously undefined field and instead is an extension of a “field” that has been producing for year and stretches over several counties including Fayette, Washington, Lee, and Burleson, maybe that is significant. Based on a quick check it looks like few wells have been completed in that field in Colorado County and none I could find near this area.

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=TONKAWA%2BUNIT&univDocNo=492254247


#95

Thanks Dusty 1 for the update. Like I said before the Tonkawa has been a great soap opera so far… let’s hope that the final results are good.


#96

Dusty 1. About ten days ago they were working 24 hours a day at the Tonkawa CDP. For the last 3 days I took an audio recording of it it’s pinging and hissing pinging and hissing it seems sometimes faster sometimes slower but it is continuously doing this. Dusty 1 does this indicate that the well is producing now or what? It gets fairly loud at times. I’m new to oil field lingo etc so can you give me your opinion.


#97

It kinda sounds like when a person is in intensive care at the hospital the noises are paced similar. Also if this is an extension of the Austin chalk what makes it significant? Is it good or bad news? Thanks bro


#98

Also the permit they filed do you think they will Spud a new well next to the present well? Up in Burton tx they practically have wells next to each other.


#99

Hottshott

I’m guessing EOG is producing the Tonkawa but I don’t have a guess about the noises you described. Doesn’t sound like compressors.

During the last reporting cycle that ended on December 20th the State Comptroller’s website shows EOG reported Tonkawa gas production for October of 104,462 mcf, but again showed no condensate produced. You probably remember in September EOG initially reported to the Comptroller that the well had produced 46,176 mcf during July but later revised that to 92,352 mcf. Like we’ve discussed back then, there is no way to know if the 92,000, or the 104,000 that they reported for October, was a full month worth of production, and if the well was on every day during those months, what size choke they were producing it on. If 104,000 is the most the Tonkawa is capable of making over 31 days a 3.4 mmcf/d average, with no condensate, wouldn’t be very impressive. Nothing but a guess but I’m doubting either of those numbers represents a whole month at an aggressive production rate but we’ll have to wait and see what gets reported in future months. Some folks have speculated on here that the Tonkawa won’t make any condensate but my guess is EOG hadn’t started making condensate sales by the time they had to file their October report with the Comptroller but has some condesate in that tank battery they built that’s waiting to be trucked or for that other pipeline to be completed from the north that you were hearing about.

On you question about where future wells might be drilled in the unit, I’m guessing if more laterals are added they will be drilled from that same pad where the first well was drilled and will parallel that original horizontal leg but offset it by somewhere between 450 and 900 feet. Regardless where any more wells are added though, as long as they are drilled within the Tonkawa unit everyone who is part of the unit would also share in those additional wells. The big unit they now have approved would be large enough for several more wells, but as long as the first well is producing EOG can control (hold by production) all the acreage in the unit so they aren’t under any time pressure to drill the next one in that unit. If they think the other acreage they have leased in that area that isn’t in the Tonkawa unit also has potential they are more likely to drill where they can maintain control of more leases before adding more wells in the Tonkawa.


#100

Thanks Dusty 1 you seem to know you’re stuff. I’ll let you know if I see other activities around it. Thanks again for the info.


#101

Dusty 1, you said in an earlier post that EOG had filed another permit for the Tonkawa. Do you think that was just a technicality or do you think they might just Spud a new well close to the present well and perhaps drill deeper?


#102

I’m thinking it was a technicality. In the remarks section it said “EOG is amending the permit to put the Tonkawa Unit #1H well into the Giddings (Austin Chalk, Gas) field (Field # 34773550). The Unit size has also increased to 1240.0 acres. Revised Unit plat attached.”

They haven’t applied for the right to drill any additional laterals which would be needed before they could drill another well there.


#103

Okay thanks Dusty 1your our only information source besides sometimes Reeves rancher. The Tonkawa CDP it’s still making the mechanical noises and the sounds of gas under pressure releasing, quiet, then releasing one oilfield worker said it sounds to him like it’s producing. I know that in October that it only produced for maybe a week or so so if that’s the case then 104 cfg is a really good figure. We’re just going to have to be a little patient maybe one day we will find out. Thanks so much


#104

Below is a link to a completion report on the Tonkawa that EOG filed today. Once again they managed to file something that seems to create more questions than it answers.

Maybe somebody will be able to figure out more from it than I did, but the main points I saw are:

-Says it’s currently a “shut-in producer”. Since they’ve reported production on CONG for Sept and Oct it will be interested to see what shows up next week when November gas numbers are due.

-Total vertical depth drilled 14758’

-Formation Record (pg 3) stops at Midway 10034’ although completion report Pallas filed 11/2017 for the original vertical Tonkawa well said they encountered the Austin Chalk starting at 14296’, and also listed the Eagle Ford, Buda Lime, Del Rio and Georgetown all being encountered above the 14758’ TVD that EOG is now reporting they drilled to vertically before turning horizontal. The field name they are saying it’s part of is Giddings (Austin Chalk, Gas) so does that mean the Chalk is 462’ thick or was Pallas just wrong on all those formation calls they reported? (Link to that Pallas completion report is also below)

On page 3 this new report says in the Remarks Section “An updated IP completion will be filed next week with all updated information.”

Think they’ll really report something?

http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method=cmplG1FormPdf&packetSummaryId=206740

http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method=cmplG1FormPdf&packetSummaryId=182422


#105

Dusty 1 Thanks again for the newest update. Like you said it seems like this creates more questions than answers. However in the last 3 weeks they have moved the security trailer away. They are busy working around the drill site with backhoes etc. Like thier digging something. Trucks have been continuously going in and out of the drill site. Why Everything is so secretive about this well i can’t figure out, everyone is stumped. However 2 weeks ago i called EOG Resources in Houston and asked what is going on with this well. He said it was now producing. IDK anymore.


#106

I happened to talk with an unknown worker going into the well site this morning and knowing how hush hush they can be he said that it’s a “tight hole” something about confidential. Lol IDK but i guess we’re going to find out next week ( or will we LOL) on what old tonk is capable or not capable of. Hopefully good but after 16 months already most landowners are wore out from the drama. Kinda like the soap opera “Search for tomorrow” I’ve had fun keeping up with anyway even if i just get a couple of dimes out of it.


#107

Thanks Hottshott. The Tonkawa is what I’d called the definition of a tight hole.

Along with a bunch of other things I can’t figure out about it is why EOG has been so cautious about everything related to this well, over such a long time, as if it’s the discovery well in a big new play, but they apparently don’t have a lot of other acreage tied up around it.

After the fact some others they’ve done like this have been called “stealth plays”, the most famous being EOG’s big extension of the Eagleford in South Texas. A more recent one involved three adjoining counties in East Texas where they drilled what turned out to be three deep research wells spread over 100,000+ acres they’d leased through a bunch of front companies (like Pallas). EOG never gives any details if one of these deals doesn’t pan out, but in that case they supposedly were looking at an unproven formation where horizontal drilling hadn’t previously been done. Throughout that whole process they were just as secretive…guard shacks at every well site and minimum information, or only confusing information, released. When oil prices dropped in 2014, and the results from their research wells apparently didn’t show what they wanted, EOG ended up walking away from everything in spite of all the money they had already spent on leases and research. If the Tonkawa possibly is the start of a major new play it doesn’t make sense, at least to me, that EOG wouldn’t already have lots of other acreage under lease for many miles around it. Like you said, it’s fun to watch.


#108

Dusty 1 i spent nearly 2 hours trying to look up the latest report, called the RRC office in Houston whom she was very helpful but after all those “query” attempts i just gave up already. I’m from the graduation class of the late 70’s all this computer generated junk is foreign to me. LOL could you possibly check when you get a chance. Thanks


#109

Saturday night i passed by the CDP and it was sounding like a continual rhythm of a train applying it’s brakes less decibals than a train but the sounds of gas pressure passing through. Monday night same thing but not quite as often. However at the actual wellsite there are 2 “Christmas tree” looking things there and it’s making a continuous humming sound unabated. LOL maybe if someone who actually works in the oil field roughnecks etc i bet would know what all this means. I’m still staying upbeat though because at least it’s not a barren area with only the calling of a few crows like it was years ago. ( I used to hunt that creek nearby and because the landowner to the east had at least 40 no trespassing signs it was a wildlife refuge. Had many a good young squirrel and rabbits out of it. LOL Anyway the soap opera goes on with “old Tonkie” take care.


#110

Hottshott

If everything works right the link at the bottom of this should take you to the latest production report on RRC’s site for the Tonkawa.

It shows zero production for November, which is the latest month anyone has reported at this time. From the noises you’re hearing it sound like gas is moving now but numbers for January won’t show up until March.

I also checked what EOG has reported on the State Comptroller’s site. That site that’s called CONG also isn’t showing any production was reported for the Tonkawa in November. The figures for November gas production were due on the 20th but may have been held up due to the MLK holiday. The site says most November reports were added to their system last night.

Like we’ve discussed before, the CONG site which is used to calculate severence taxes shows the 46,176 MCF that EOG originally reported as sales from the Tonkawa in July was later corrected to 92,352, but RRC is still showing that original lower number, along with 1,938 MCF they say were flared in July. Both RRC and CONG show the same 104,462 MCF amount produced in October. CONG only shows months when sales occurred so there was no zero entry for November like was shown on RRC.

The numbers reported to RRC don’t seem to be given as much importance as what the volumes that Comptroller’s office is told. Based on how things have gone so far with the Tonkawa I wouldn’t be surprised if there was some production in November that at some point will show up as another “correction”.

http://webapps.rrc.texas.gov/PR/publicQueriesMenuSubmitAction.do;jsessionid=-D125B6l6ag1TquCY5lSiUEENFS_25NT8__kmFyNu2xKtwOaT4ET!-1925344818!1426703412