Press Releases for the Cline Shale

Texas Mineral Rights Mitchell County, TX
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It didn't seem appropriate to add this as a comment on any of the other discussions, so I thought I might start a discussion pertaining to new releases related to the play. I found this link on one of the other forums and wanted to share it here in case anyone missed it. It reallys seems our excitement is warranted.

If anyone else sees a new press release, you are invited to post it here.

Investors Anticipate What Could Be the Largest Shale Play in American History

LUBBOCK, Texas, Nov. 27, 2012 /PRNewswire/ -- Expectations are building for America to become the world leader in oil production by 2017 due in part from what some are supposing could be the largest oil play in American history, taking place on Texan soil.

In the heart of Texas's Permian Basin, lies the Cline Shale, an oil shale field running 140 miles long and 70 miles wide. Devon Energy and Chesapeake Energy, two oil companies, are reporting impressive figures based on the short amount of time they have had to explore. Devon Energy's test wells show the Shale contains 3.6 million barrels of recoverable oil per square mile. With an approximate 9,800 square miles of Cline Shale, this would amount to over 30 billion barrels of recoverable oil, exceeding both the Bakken fields in North Dakota, and the Eagle Ford in Texas by nearly 50 percent.

Taking into account the projected 200 to 550 depth of the Shale, this would be equivalent to having ten Eagle Ford Shales stacked on top of each other. The oil to dry gas ratio of the Shale is also garnering attention, with the Shale containing 85 percent oil and liquid rich gas. When you combine that with the low operating costs it takes to produce the oil in the Basin, about 50 percent less than the Bakken, it is shaping up to be one of the greatest oil & gas booms America has ever seen.

There are two primary deficiencies that the Cline Shale region will need to overcome to be able to make history: lack of housing due to exponential population growth to small town infrastructures, and lack of global distribution for the large amounts of liquid gas being produced. If the deficiencies are adequately addressed, the boom stands a better chance of maintaining momentum.

LubbockInvest, a real estate investing firm, is addressing the housing lack through Stone Bridge Estates, a 50 acre 265 lot manufactured home development in the heart of the Permian Basin, aimed at providing high-end, affordable housing for the employees brought to the area due to the boom. This type of housing is in high demand since many of the individuals brought to the area lack creditworthiness, preventing them from obtaining traditional housing. According to Midland City Manager, Courtney Sharp, "Oil and gas company leaders also say that cumulatively, they still could use as many as 10,000 more employees in the coming years." As it stands, housing will continue to be a deficit that could hinder the boom, but is being addressed at a satisfactory pace.

Teekay LNG Partners, a Liquid Natural Gas Carrier, is addressing the deficiency that such large liquid gas depositories will cause. Although gas is extremely inexpensive in the United States, it remains pricey in nearly every other country in the world. Teekay has been ramping up its ability to export liquid natural gas around the world by adding six additional vessels to its inventory in October of 2011. With the presence of an international market, the profit produced from the Cline Shale will increase quite dramatically as most of the gas extracted is already liquid-rich gas.

Although it is too early to call this the largest play in American history, it is clear that intentional companies are anticipating that this is precisely what it could be.

Contact:
Julie Templeton
(806) 787-3876

SOURCE LubbockInvest

PR Newswire (http://s.tt/1uYJT)

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Thanks for posting Gary, I hadn't seen that information. Toni

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Bill says instead of "Adopt A Wolf", like our local booster club has for the football team, we will need to have "Adopt A Roughneck" to address the housing issue.

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This article contains a lot of the same information that we have already seen.

Exploration continues to fuel expectations for Cline Shale oil boom

Cline Shale could be largest oil play in US history

AVALANCHE JOURNAL

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. Stephen Spillman
Stephen Spillman
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.
Back | Next

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

AVALANCHE-JOURNAL
Exploration continues to fuel expectations for Cline Shale oil boom
ASHLEY EADY
November 30, 2012 2:44 PM 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 30 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.”

http://tinyurl.com/ccdezyn

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Here is another article off the AAPG site. It seemed too long to post in it's entirety.

"Blended Plays, Technology Awakened Permian"

http://www.aapg.org/explorer/2012/05may/permian0512.cfm

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This Shale Field Could Be Three Times Bigger than the Eagle Ford

Posted by Frank Curzio, Penny Stock Specialist on December 7, 2012 6:16 pm

“We are about to get a real close look at one of the greatest shale areas this country has ever seen,” my friend Cactus Schroeder told me last night.

I called him up to get an update on the Texas oil scene. Cactus is a 30-year veteran of the oil industry… with personal interests in over 1,000 drilling projects throughout Texas. In October, he took me on a 600-mile trip through west Texas. We started in the Eagle Ford shale, and then headed to some of his personal oil properties in the northwest.
When it comes to shale oil production, the Eagle Ford and North Dakota’s Bakken shale grab most of the headlines. But Cactus has his sights set on a new shale area… He’s buying up property there right now.

If he’s right, several of the companies drilling there could make a killing as this small, oil-rich region becomes “The Next Eagle Ford”…

As you may recall, the Eagle Ford is an “unconventional” oil and gas play… meaning it isn’t a traditional reservoir, where we can drill a well that acts like a straw and sucks up the oil and gas. Instead, the region is made up of a series of thin rock layers. The oil and gas are trapped between these layers, which makes traditional oil drilling useless.

But thanks to new drilling technologies like “fracking,” major oil producers can tap new deposits and rejuvenate wells long thought to be dry – recovering more oil and gas than was previously thought possible.

Oil production in the Eagle Ford and the Bakken is changing the landscape of the industry. In fact, there’s so much oil production coming out of these areas today, the International Energy Agency (IEA) predicts the U.S. will produce more oil than Saudi Arabia within eight years.

Cactus has made a killing drilling for oil in the Eagle Ford. But now, he’s investing his own cash in a new area that he believes could be much bigger. It’s the Cline shale in northwest Texas…Cline Shale Beneath Permian Basin in Texas
The Cline lies roughly 9,000 feet below the surface in an area known as the Permian Basin (shaded above). It runs about 140 miles long and 70 miles wide.

Over the past three years, some of the biggest exploration companies have set up shop in the area. Devon Energy (NYSE: DVN) owns over 600,000 acres of land there. Apache (NYSE: APA) has interests in over 500,000 acres. Pioneer Natural Resources, Range Resources, and FireWheel Energy (which became a separate company after the XTO and ExxonMobil merger) are also drilling in this promising area.

Devon estimates that the Cline formation contains over 30 billion barrels of recoverable oil. That’s why Cactus calls it “The Next Eagle Ford” – it could contain three times more recoverable oil than the Eagle Ford. (And six times more than the Bakken.)

These numbers may sound farfetched. But Japanese energy giant Sumitomo invested $1.4 billion for a 30% stake in Devon’s Cline shale assets in August. Three months ago, Chevron bought over 700,000 acres in the Permian Basin from Chesapeake Energy for $7 billion. More than 150,000 acres of this is in the Cline shale.

Devon is actively drilling in this area right now. Cactus says we will know a lot more about the Cline’s potential in about four months, at the end of the first quarter of 2013. That’s when Devon is expected to release some of the first Cline shale data to the market.

My advice is to scale into the large oil producer before these results are released. Devon’s share price is well off its high. The stock is trading at just 12 times forward earnings – much cheaper than competitors Range Resources and EOG Resources. It’s also trading below book value.

If the data is as positive as Cactus predicts, the value of Devon’s land in the Cline region will soar. That would likely boost the stock price from today’s super-depressed level.
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This story from the Abilene Reporter-News carries some of the same information as we've already covered, but it gives the date for the next Cline Shale meeting in Colorado City.

http://www.reporternews.com/news/2013/jan/19/big-country-communities-bracing-for-cline-shale/