We have holdings in Scurry and Mitchell Counties. We are hoping for lease renewals, they are finally drilling one close to us, if it hits we will be Happy Happy Happy. If not, we will wait on technology.
Glasscock County.
Terry said:
John, which county do you hold royalties in?
We're in Glasscock County, too. We do like Laredo; they conduct themselves very professionally. Our property, the one in which Laredo is beginning the HZ drilling, had first vertical drill in Dec. 2012. We're perfectly happy that it's taken them until now to start HZ. And, we'd rather see all of this roll out nice and slow and efficient and effective, and last a while, than have it spike high and drop off quickly. How long have you had verticals where you're at?
j richard said:
Glasscock. What county are you in? I think you will like Laredo, I was once a royalty owner of theirs in the Anadarko basin.
John Allen said:j richard...My family owns royalty interest in Laredo wells. We just received a production lease agreement from them; they intend to begin HZ drilling in one of the sections in which we have interest. We're pretty excited about this development, which came just on the heels of this recent conference and presentation. I guess from our little corner of the room, it looks like they're slowing unfolding their plan as articulated. We'd rather they proceed slowly and carefully than cause damage by moving too quickly. Do you mind me asking what county you are in?
Terry, where are Scurry and Mitchell in relation to the Cline shale? We have been looking for a map or something that specifically states the counties involved in Cline shale, but so far, most of what we've found is somewhat gross...not specific with regard to counties. The Laredo presentation had some of the best mapping we've seen, but it doesn't show Cline by township, block and section. That would be helpful, and interesting. Maybe someone will come out with that some day.
Terry said:
We have holdings in Scurry and Mitchell Counties. We are hoping for lease renewals, they are finally drilling one close to us, if it hits we will be Happy Happy Happy. If not, we will wait on technology.
I'd like to hear more about why folks think that Laredo will be bought. Why would they sell, with such a great position, and plan, that seems to be paying off? Sure hope that they do *not* sell, or are not bought. They seem to know what they are doing and they seem to be invested in doing quality work.
Would also be interested to know what folks think about the likelihood of Apache doing any HZ drilling in the areas where they are operator, with Laredo holding the lease.
Wow John, I am very happy for you! From what I am seeing you won't be disappointed. Our first vertical was drilled in early '13. Like I said I think the show is just beginning.
I saw your question about Cline in relation to counties. Apache has one which I think is posted in "What is the Cline Shale ?"
John Allen said:
We're in Glasscock County, too. We do like Laredo; they conduct themselves very professionally. Our property, the one in which Laredo is beginning the HZ drilling, had first vertical drill in Dec. 2012. We're perfectly happy that it's taken them until now to start HZ. And, we'd rather see all of this roll out nice and slow and efficient and effective, and last a while, than have it spike high and drop off quickly. How long have you had verticals where you're at?
j richard said:Glasscock. What county are you in? I think you will like Laredo, I was once a royalty owner of theirs in the Anadarko basin.
John Allen said:j richard...My family owns royalty interest in Laredo wells. We just received a production lease agreement from them; they intend to begin HZ drilling in one of the sections in which we have interest. We're pretty excited about this development, which came just on the heels of this recent conference and presentation. I guess from our little corner of the room, it looks like they're slowing unfolding their plan as articulated. We'd rather they proceed slowly and carefully than cause damage by moving too quickly. Do you mind me asking what county you are in?
I think Laredo could be bought by Exxon, Chevron, or Phillips against their will. Where else could the companies get acreage like this (Pioneer has the same problem imo). The big guys were late to the party. The good news is Warburg Pincus from Europe was their backer in their infancy. Serious money. Unless I heard wrong on the conference call they have 6 billion bbls. of oil in place. Go find that these days in a stable place like West Texas.
Indeed I am in leases where Apache is operator and Laredo has leases. We signed with Apache because they called first. It's all good I think.
Also look at stock chart of Texas Pacific Land Trust (TPL) since Chevron got hooked up with them around a 100 points of gain. Laredo has a gold mine imho.
John Allen said:
I'd like to hear more about why folks think that Laredo will be bought. Why would they sell, with such a great position, and plan, that seems to be paying off? Sure hope that they do *not* sell, or are not bought. They seem to know what they are doing and they seem to be invested in doing quality work.
Would also be interested to know what folks think about the likelihood of Apache doing any HZ drilling in the areas where they are operator, with Laredo holding the lease.
A little bit OT but...
Anyone have an idea why RSP would be delaying their conference call and their operational update? They were originally scheduled for the 11th but changed it to the 16th. Perhaps it means nothing but I have not seen a company delay an update like this.
Could it be regulatory due to pending stock offering
Perhaps you are right Craig.
As a make up for my going all OT in here..
From http://www.energyandcapital.com/articles/oil-drilling-technology/4550
"But as I just hinted, there's some disagreement out there. The Energy Information Administration, for example, expects U.S. oil production to peak at 9.5 million barrels per day in 2016.
Quite frankly, I'm not convinced the EIA believes in its own numbers. One of its analysts recently admitted, “We keep underestimating production.”
That's also not to mention a major drawback with government predictions — they don't factor in new technologies still being tested.
Sheffield himself even said we can only reach 14 million barrels per day if the technology is right.
And there are two to keep an eye out for going forward..."
I think most of us here are already familiar with multi well drilling but I have not read much on CO2 injections. Is it really the magic bullet or does its success depend on geology just as much as others?
I think the government consistently under estimates reserves even without factoring in new technologies as well they should. Overestimating on the part of the government can be problematic. I have read a few articles on the use of CO2 injections in the older fields but not in new wells. Those using it to coax oil out of older fields are having a slow but very steady success. I understand it is a very long term investment. A Rockefeller heir is investing a fortune in the process in the Permian.
Speaking of new technologies take a look at this article:
http://finance.yahoo.com/news/crude-energy-successfully-leading-way-152000542.html?.tsrc=applewf
Earnest said:
Perhaps you are right Craig.
As a make up for my going all OT in here..
From http://www.energyandcapital.com/articles/oil-drilling-technology/4550
"But as I just hinted, there's some disagreement out there. The Energy Information Administration, for example, expects U.S. oil production to peak at 9.5 million barrels per day in 2016.
Quite frankly, I'm not convinced the EIA believes in its own numbers. One of its analysts recently admitted, “We keep underestimating production.”
That's also not to mention a major drawback with government predictions — they don't factor in new technologies still being tested.
Sheffield himself even said we can only reach 14 million barrels per day if the technology is right.
And there are two to keep an eye out for going forward..."
I think most of us here are already familiar with multi well drilling but I have not read much on CO2 injections. Is it really the magic bullet or does its success depend on geology just as much as others?
http://www.crude.com/media/crude-cottonwood-1h/
Nice domain name, but I can not find Crude Energy or a drilling permit for a Cottonwood lease in Hardeman county on the RRC website. Is the Yahoo Finance link you shared a press release?
Craig Wascom said:
...Speaking of new technologies take a look at this article:
http://finance.yahoo.com/news/crude-energy-successfully-leading-way...
Earnest said:
Perhaps you are right Craig.
As a make up for my going all OT in here..
From http://www.energyandcapital.com/articles/oil-drilling-technology/4550
"But as I just hinted, there's some disagreement out there. The Energy Information Administration, for example, expects U.S. oil production to peak at 9.5 million barrels per day in 2016.
Quite frankly, I'm not convinced the EIA believes in its own numbers. One of its analysts recently admitted, “We keep underestimating production.”
That's also not to mention a major drawback with government predictions — they don't factor in new technologies still being tested.
Sheffield himself even said we can only reach 14 million barrels per day if the technology is right.
And there are two to keep an eye out for going forward..."
I think most of us here are already familiar with multi well drilling but I have not read much on CO2 injections. Is it really the magic bullet or does its success depend on geology just as much as others?
It was a press release but the point of sharing the link was not Crude Energy or the Cottonwood lease but the technology that they used. Here is the link for that
http://www.packersplus.com/products/quickfrac.php
AJ said:
http://www.crude.com/media/crude-cottonwood-1h/
Nice domain name, but I can not find Crude Energy or a drilling permit for a Cottonwood lease in Hardeman county on the RRC website. Is the Yahoo Finance link you shared a press release?
Craig Wascom said:...Speaking of new technologies take a look at this article:
http://finance.yahoo.com/news/crude-energy-successfully-leading-way...
Earnest said:Perhaps you are right Craig.
As a make up for my going all OT in here..
From http://www.energyandcapital.com/articles/oil-drilling-technology/4550
"But as I just hinted, there's some disagreement out there. The Energy Information Administration, for example, expects U.S. oil production to peak at 9.5 million barrels per day in 2016.
Quite frankly, I'm not convinced the EIA believes in its own numbers. One of its analysts recently admitted, “We keep underestimating production.”
That's also not to mention a major drawback with government predictions — they don't factor in new technologies still being tested.
Sheffield himself even said we can only reach 14 million barrels per day if the technology is right.
And there are two to keep an eye out for going forward..."
I think most of us here are already familiar with multi well drilling but I have not read much on CO2 injections. Is it really the magic bullet or does its success depend on geology just as much as others?
The packer plus technology being touted by Crude has been around for years in various firms. IMO Crude isa “promoting” company that looks to sell pieces-usually in small % slivers- to “qualified invrstores”. Oftentimes non-savvy people ad to o&g opetations . So to attract these investors, they tout technology like packer plus to make the look super high tech and smart and a good investment. Personally, I would never put my money into a project promoted by a company like Crude.
http://www.prnewswire.com/news-releases/breitling-oil-and-gas-corpo...
DALLAS, Dec. 9, 2013 /PRNewswire/ -- Breitling Oil and Gas Corporation and Breitling Royalties Corporation (collectively, "Breitling") and Crude Energy, LLC and Crude Royalties, LLC (collectively "Crude") jointly announced today that Breitling has transferred to Crude its business of sourcing and managing oil and gas working interests and royalty interests for clients. Upon completion of its asset purchase agreement with Bering Exploration, Inc. ("Bering" ), Breitling intends to operate as a publicly held exploration and production company, not as an originator of investment opportunities for retail investors.
Breitling Hits Petroleum News Bakken With Defamation Suit
http://www.law360.com/articles/462730/breitling-hits-petroleum-news...
“This information is kept confidential from the public. However, the actual investors of Breitling are made aware of this and have the pertinent records indicating the operators,” the petition said. “Without properly researching the well names or doing the due diligence required before publishing slanderous comments, defendant ‘shot from the hip’ and published the aforementioned article which caused Breitling irreparable harm.”
During the week of July 14, Bakken published an article titled, “A mix-up in well names? No records found for wells Breitling says were drilled in North Dakota.” The article said that, after a search of wells in North Dakota, no records were found that Breitling had an interest in the wells.
That article was patently false, according to the lawsuit."
If you look at Crude’s website, their latest project in Sterling County is touting Midland Basin type potential even though this county is on eastern shelf and clearly different and much less prospective. I understand this difference but many investors probably will not. Disturbing and on the edge if being unethical IMO
Again the point was not to discuss Crude Energy or where they say they are drilling but the technology of Packer plus: http://www.packersplus.com/products/quickfrac.php
Do you have any opinions about the technology? Will it increase production?
Rock Man said:
The packer plus technology being touted by Crude has been around for years in various firms. IMO Crude isa "promoting" company that looks to sell pieces-usually in small % slivers- to "qualified invrstores". Oftentimes non-savvy people ad to o&g opetations . So to attract these investors, they tout technology like packer plus to make the look super high tech and smart and a good investment.
Personally, I would never put my money into a project promoted by a company like Crude.
Packer plus type fracs are faster, lower cost stimulation operations. Much less aggressive and effective than perf and plug operations which should give operator more stimulated rock volume and more EUR. In short, this option results in less production IMO
Thanks for the answer Rock Man my thinking was more stimulated rock would mean more production. Is this new enough that the jury is still out on results?
No, packer plus technology had been around for a while. Results of this versus perf and plug approach pretty well understood. One is like hitting formation with rubber mallet while perf & plug is like using 25# sledge IMO