The results are in, Devon Energy announced it's overview, on one of the nation's newest and hottest shale oil play's the (Tuscaloosa Marine Oil Shale).
* Tuscaloosa Attractive Attributes:
1. Proven Capacity To Flow Oil; Existing Production
2. Highly Over-Pressured Reservoir
3. Low-Cost Acreage
4. Well-Established Regulatory Environment
5. Existing Infrastructure
** Tuscaloosa Stratigraphic Section:
1. Highly Laminated Lithology
2. Brittle Intervals Of Sand, Siltstone And Limestone
3. Significant Fracture System
4. Several Historical Oil Pay Zones, Throughout The Stratigraphic Section (Austin, Eagleford Shale)
*** Tuscaloosa Significant Fracture System:
1. Fractures Are Dominant Component
2. Very Dense Fractures
3. Closely Spaced Fractures Will Improve Permeability
4. Challenges for Drilling
**** Tuscaloosa Type Log:
1. Wide Spread Shelf Setting Low Structural Relief
2. Gross Thickness: 100'-250
3. High Resistivity
4. Highly Over Pressured:>0.7 PSI/FT
5. Frac Barriers Above And Below
6. Fractures Present In Cores And Image Logs
*****Tuscaloosa Results To Date And Targets:(Target Well Economics)
1. Drill And Complete Cost $12-14 Million
2. EUR:400-600 MBOE (90% LIQUIDS)
3. IP RATE (1ST MONTH AVERAGE): 700-900 BOPD
4. AVERAGE ROYALITY: 21%
******Tuscaloosa Key Going Forward:
1. Optimization Of Drilling And Completion
2. Testing Of Drilling And Completion
3. Testing Of Longer Laterals With 15-20 Stage Fracs
4. ESTABLISH REPEATABLE COMERCIAL RATES