Cline shale??

[setliff]

article from the lubbock avalanche stolen from the IV bd---

Exploration continues to fuel expectations for Cline Shale oil boom
Cline Shale could be largest oil play in US history
Posted: November 28, 2012 - 7:26pm | Updated: November 29, 2012 -

A study by Devon Energy and Chesapeake Energy states the Cline Shale contains 3.6 million barrels of recoverable oil per square mile.

At 140 miles long and 70 miles wide, the Cline Shale oil play is expected to be one of the largest in U.S. history.

By ASHLEY EADY
AVALANCHE-JOURNAL
Exploration continues to fuel expectations for Cline Shale oil boom
November 29, 2012 11:29 AM EST
Two years ago, no one had ever heard of the potential of the Cline Shale oil play.

Now, the 140-mile-long and 70-mile-wide oil shale is anticipated to be one of the largest oil plays in American history.

Projections for the Cline Shale contribute to the expectation for the U.S. to become the world leader in oil production by 2017.

As the result of exploration by oil companies Devon Energy and Chesapeake Energy, the Cline Shale is quickly emerging as the richest oil play known. Other development companies with interests include Firewheel Energy, Laredo Petroleum, Exco, and Callon Petroleum, among others.

Devon Energy President John Richels gave a “type curve” for a Cline Shale well — a guess at how much a well would produce over time.

He said he expects a total production of 570,000 barrels of oil equivalent, and 85 percent of that would be oil and liquid gas rich.

“We are very excited about the Cline,” said Andy Coolidge, Devon Energy's vice president for the Permian Basin. “We expect to deliver highly economic and robust production growth.”

Snyder is in the the Cline pocket, which includes parts of Scurry, Borden, Mitchell, Fisher, Nolan, Sterling and Glasscock counties

“It’s like Christmas morning. We are all waiting to see how this unfolds,” said Bill Lavers, CEO of Develop Snyder.

Test wells on the Cline show the shale contains 3.6 million barrels of recoverable oil per square mile, about 300 billion barrels of recoverable oil for the entire shale.

Until recently, the Eagle Ford Shale was considered to be the richest shale play in Texas. The Eagle Ford Shale covers Webb, Dimmit, Lavaca, McMullen, Karnes, DeWitt and Gonzales counties in the southern portion of the state.

Recent advances in horizontal drilling have opened up the possibility of drilling in areas like the Cline.

The Cline’s depth is equivalent to 10 Eagle Ford Shales stacked on top of each other.

Pete Stark, an independent analyst from Englewood, Co., and regarded by the industry as an expert on global oil and gas resources, said, “We haven’t seen billion-barrel numbers onshore since Prudhoe Bay, Alaska, in the ’70s.”

While the buzz surrounding the Cline Shale brings excitement and economic hope, it also presents some challenges to the communities located there.

For weeks, local officials have held public meetings to discuss the effects of the increasing drilling activity.

The shortage of housing in the Cline Shale area continues to be a main concern, according to Lavers.

“Everybody in the entire area is working together more than they ever have. There are no guarantees that anything is going to happen, but when you look at all the growth that has already occurred, it is obvious that something big is going on here,” he said.

Abel Deloera, Snyder councilman and owner of Deloera Realty, said he is busier than he has ever been.

“November and December are usually really slow months in real estate,” said Deloera, “This is the busiest I have been in six years.”

Deloera, who gets 10 to 15 phone calls every day from people looking for housing, said he started trying to address the Snyder housing shortage in October 2008.

“I saw this coming, but no one would listen,” said Deloera, “now we are a good 18 months to two years behind.”

Snyder lacks between 400 and 500 housing units, according to Deloera, and there has been a major increase in land value as a result of recent activity.

“I have people literally calling in tears saying they need a place for their families to live,” he said, “and I can’t help them. From here to Midland, in the entire area, there is virtually nothing available.”

According to Lavers, 35 housing lots were developed for sale and sold within 20 days of completion to a single developer.

Another project expected to close in March, according to Deloera, will develop about 100 single-family housing units.

Deloera said that development is moving too slowly, a fact he attributes to the risk involved. “Developers will have to risk millions of dollars in anticipation of what is about to happen; people are hesitant because of the risk.”

[setliff]

anybody ever heard of this one? appears to be just below the caprock.

[mdwitte]

Other than DVN and CHK, who are the players?

[setliff]

all i know is what is in the article.

[dan_s]

More good news for the Permian Basin. Devon is a great company that know what they are doing. Callon is also very good.

[adamlloyd]

CWEI has acreage. By the way, it should be 30 billion barrels recoverable rather than the 300 billion in the article.
Adam

[dan_s]

XEC is very active in the Permian Basin. Check out our profile.

[setliff]

more info on cline; below original article has illustrations that did not copy here they can be seen at

http://info.drillinginfo.com/urb/wolfbe ... go-deeper/


Midland Basin Horizontal Opportunities Go Deeper
by Matt Menchaca on June 20th, 2012
Lying along the eastern flank of the Midland Basin is the Cline Shale. Cline is a localized name for the Pennsylvanian aged shale that some recognize as the D bench of the Permian aged Wolfcamp. Starting at the Wolfcamp A bench down to the bottom, Wolfcamp C bench, the rock has less carbonates. However, the underlying Cline (Cisco) Shale is interbedded with sand and silt, indicative of its depositional environment. The Cline source rock lies on a broad flat shelf, with very little relief. TOC, porosity, permeability, and OOIP are all fairly comparable in both Wolfcamp and Cline. Even though the Wolfcamp is thicker, which can be a driver for production in shale plays; it is the pressure and thermal maturity of the Cline that sets it apart. The pressure gradient is around 0.55-0.65 psi/ft with an Ro value of 0.85-1.1%. Along with NGLs, this allows for a nice, light crude with an API gravity of 38-42 degrees, some say is comparable to the Eagle Ford. The industry type curve for the Cline Shale is quoted at 420 Mboe EUR/well with 60% oil and a 30 day IP of 575 Boe/d with 75% oil.

Operators already drilling the Wolfcamp and Wolfberry trends; the Cline offers yet another prolific pay zone. Devon Energy has acquired 500,000 net acres prospective to the Cline Shale play. The company plans to drill 15 wells this year and operate 4 rigs by the year-end and has invested $350 million to develop the play in 2012. Laredo Petroleum has been drilling and collecting data on the Cline since 2008, and has completed a total of 29 horizontal wells. Laredo is currently evaluating the results of increased frac stages, and plans to test 7000 plus foot laterals in 2012. Callon Petroleum has 14,470 net acres with Cline potential. The company is focused on strategic growth in the Permian Basin with emphasis on the Wolfcamp B and Cline Shales. Apache controls 334,000 net acres in the Midland Basin and will be running 2 rigs throughout this year, targeting the Cline Shale. To date, Apache has drilled 4 successful wells and plans for 8 more this year. Lateral lengths range from 3800 to 6840 feet and 10 to 15 frac stages with an average EUR of 400 MBOE. The company is working on optimizing landing point and frac design to increase EURs. Range Resources has 100,000 net acres in the Midland Basin. Range is reporting a $4.3 million well cost to drill and complete a 3000 foot lateral, 10 frac stage well in the Cline.

I provided a map below showing the mentioned operators producing areas using DrillingInfo. Wells shown include both Cline and Wolfcamp completed wells with production within the past 2 years. I included both since wellbores penetrating the Cline are permitted as Wolfcamp by the RRC.



Feel free to check other new and popular areas of exploration in Drilling Info’s Emerging Plays Unconventional Reservoir Blogs.

[setliff]

this APA presentation on their permian basin activities show they are a major player in the cline and apparently there is not much difference between the wolfcamp shale and the cline. me thinks lubbock avalanche exagerates a bit.

http://files.shareholder.com/downloads/ ... 121114.pdf