Thoughts?
4 replies (most recent on top)
to lcu this is iet - thick doesnt mean much especially in the DB horizontals connect to zones in strange ways. We as a company want to emphasize the thickness since we missed the boat in early leasing. We were busy over sciencing the Eagle Fart while everyone else drilled their acreage at $100 prices then moved to the Permian to establish their current positions. We are now feeling the consequences of our inaction in both plays.
The sad thing is the WCAB/Yeso in our Permian conventional assets are way better then the shales. I liken this to the Austin Chalk in the Eagle Fart. The AC is a better play and should be drilled preferentially to the Fart. I really got a kick out AH explanation of why we havent drilled our Fart up. We now reap the benefits of our Fart knowledge at $40-45 oil prices. Geochem cant help you hide the fact that we destroyed value in the asset and the analysts called his bluff.
Anyway we are about to massively over invest in the Permian so the ELT can claim a presence. The Wolfcamp is a good play, just not on our land.
We so want to be an independent but will never quite get there.
@iet nails it - great post and thank you
The unconventional assets in the Permian may be small, but they sure are thick!!!
We missed that boat by 10 years in the MB...we dabbled in the Wolfberry but were too high cost and our fearless exploration leaders didnt believe in the play. We then bought acreage in the MB once EOG anounced sucess but we sold that all when we couldnt figure it out. Now we are trying to 'core up' at $40-50K an acre to get back into the same play, in a pretty small foothold. Pioneer owns the play in the MB and there have been thousands of wells drilled to date.
As for the DB our acreage is heritage HBP acreage (Red Hills and China Draw). The exploration acreage we had was gas or or flowed water and we havent done anything with it. We havent drilled many wells to date in our 'good' acreage. Concho, Anadarko, and EOG are the big players there.
We talk a big game in the Permian but our unconventional assets are pretty small.