Hot Plays in 2012
Posted: Sat Oct 08, 2011 10:33 am
This note from PLS mentions two of the resource plays that I believe will be "Hot Topics" in 2012. I like GPOR in the Utica Shale and SD in the Mississippi Lime. - Dan
In this Market Alert, PLS highlights the industry's continued march towards exploiting oil-laden source rocks for long standing conventional plays across the onshore United States -- like the Tuscaloosa and Smackover.
1.) Tuscaloosa Marine Shale - known as the TMS, this well-known source rock stretches across central Louisiana into Mississippi. Current drilling activity is focused on the Louisiana/Mississippi border by Devon and Encana/Denbury. Industry is in early stage evaluation with an objective to bring the cost vs. production mix towards commerciality.
2.) Lower Smackover Brown Dense - Limestone source rock in southern Arkansas/northern Louisiana which has fed traditional Upper Smackover production since the 1920's. Southwestern Energy has assembled 460,000 acres ($300/acre) and has an initial test well slated for Columbia County, Arkansas. Other companies in the play are Devon and Epsilon Energy with Exxon and Cabot waiting in the wings.
3.) Utica - After quietly assembling the acreage and doing the science Chesapeake started the Utica train running with an early summer announcement that its position was worth $15 - $20 billion. Chesapeake recently released IP reports of up to 3,000 boe/d.
4.) Mississippian Lime - In northern Oklahoma/southern Kansas, this play got kicked off 3 years ago by early entrants including Sandridge Energy, Chesapeake and Range. Now moving to full development. Economically, Sandridge got in at $200/acre and recently sold a portion for $4,425/acre.
In this Market Alert, PLS highlights the industry's continued march towards exploiting oil-laden source rocks for long standing conventional plays across the onshore United States -- like the Tuscaloosa and Smackover.
1.) Tuscaloosa Marine Shale - known as the TMS, this well-known source rock stretches across central Louisiana into Mississippi. Current drilling activity is focused on the Louisiana/Mississippi border by Devon and Encana/Denbury. Industry is in early stage evaluation with an objective to bring the cost vs. production mix towards commerciality.
2.) Lower Smackover Brown Dense - Limestone source rock in southern Arkansas/northern Louisiana which has fed traditional Upper Smackover production since the 1920's. Southwestern Energy has assembled 460,000 acres ($300/acre) and has an initial test well slated for Columbia County, Arkansas. Other companies in the play are Devon and Epsilon Energy with Exxon and Cabot waiting in the wings.
3.) Utica - After quietly assembling the acreage and doing the science Chesapeake started the Utica train running with an early summer announcement that its position was worth $15 - $20 billion. Chesapeake recently released IP reports of up to 3,000 boe/d.
4.) Mississippian Lime - In northern Oklahoma/southern Kansas, this play got kicked off 3 years ago by early entrants including Sandridge Energy, Chesapeake and Range. Now moving to full development. Economically, Sandridge got in at $200/acre and recently sold a portion for $4,425/acre.