LOUISIANA ENERGY CONFERENCE Tuscaloosa Marine Shale An Emerging Oil Play June 27, 2012

Transcription

1 LOUISIANA ENERGY CONFERENCE Tuscaloosa Marine Shale An Emerging Oil Play June 27,

2 TUSCALOOSA MARINE SHALE Emerging Shale Oil Play Emerging shale oil play 132,000 net acres leased Net cost $30 million or ~ $225 / acre Average depth 11,000 13,000 TVD Thickness High quality crude (38 44 degrees API) LLS pricing and lower royalty burdens provide 15-25% uplift in economics 2

3 EIE CAA AIE HAE An unconventional oil resource play over approximately 2.5 million acres covering portions of four counties in MS and seven parishes in LA Silica rich shale with 90% oil and 10% high BTU gas (NGLs) A mature source rock of oil and gas for the lower Tuscaloosa sandstone (3.5 Tcfe produced to date), and the Austin Chalk formations in Mississippi and Louisiana Proven ability of matrix flow over long period of time from old, under-stimulated completions. In addition to matrix flow, significant vertical and horizontal fracture system will improve permeability and meaningfully contribute to production and EUR Resistivity profile of the TMS is the most diagnostic, log-based feature that can be mapped (4-9 ohms). Elevated resistivity in the TMS increases more as a function of burial depth than formation gross thickness, which is consistent with an interpretation of increased thermal maturity and hydrocarbons with depth Over-pressured formation will allow for high oil saturations and assist in liquids lifting 3

4 4 HIGH EIII G CHAACEIIC

5 CORE ANALYSIS 5

6 EA E HI 1962: Humble - Spears 1 (Amite County, MS). Dry hole but cored 3 of oil saturated TMS 1975: Callon-Cutrer #2 (Tangipahoa PH, LA). Vertical well produced 2,500 BO over 15 years. Core showed 5-7% porosity, vertical and horizontal fractures with live oil saturations 1977: Texas Pacific Oil Company Blades No. 1 (Tangipahoa PH, LA) produced 24,000 barrels of oil over 30 years from an unstimulated vertical well 1980s: Exxon Jackson #4 and Amerada Hess Montrose Plantation #1 (Wilkinson County, MS) blow out while drilling the TMS 1998: UPRC Richland Plantation #5 (East Feliciana, Parish, LA). Short lateral (1,100 ) well with IP of 117 BOPD that produced 4,000 barrels of oil. Killed with salt water for workover and never produced after treatment 1999: Worldwide #1 Braswell in Pike County. Short horizontal well but not fracked. Has produced 12.7 MBO and still producing 2 BOPD 13 years later 2000: Petroquest Lambert 1H (Amite County, MS). Not fracked, but had peak rates of BOPD and has produced 11,600 barrels of oil in 11 years and still producing 2004: Worldwide #1A Spears (Amite County, MS). Not fracked but has produced 11.8 MBO in eight years and still producing 6

7 EI AD ECE E E 2005: Encore Joe Jackson #4. (1,650 ) 3 frac stages. Well has produced 28,800 barrels 2007: Encore Richland Plantation #1. (3,100 ) 3 frac stages and IP of 200 BOPD. Cumulative production of 10,700 barrels 2008: Encore Weyerhaeuser No. 1 (Sec 60, T1S, R4E, St Helena Parish, LA) (4,100 ) 323 BOPD, 3 frac stages, cumulative production of 27,000 barrels 2011: Board of Education #1, Amite County, MS. Re-entry (3,100 ) with 5 successful frac stages IP: 373 BOPD on 12/64 choke with 1770 psi. 2011: Beech Grove 68H-1, East Feliciana Parish, LA. Mechanical issues 101 BOEPD 30 day average 2011: Weyerhaeuser 73H-1, St. Helena, LA. (5,137 ) 30-Day Rate: 700 BOPD 2012: Soterra 6H Day Rate: 176 BOEPD 2012: Horseshoe Hill 10H-1, Wilkinson County, MS. IP: 761 BOEPD 2012: Anderson 17H-1, Amite County, MS. (7,365 ) 72-HR IP: 1,081 BOEPD on 15/64 choke 2012: Anderson 18H-1, Amite County, MS. (8,755 ) 30-Day Rate: 1,072 BOEPD 7

8 DECLINE CURVE ANALYSIS Initial Encore Wells (Source: Indigo Minerals) 1,650 Lateral 3 Frac Stages 85 MBO EUR 28 MBO/Stage 3,100 Lateral 3 Frac Stages 46 MBO EUR 15 MBO/Stage 4,100 Lateral 3 Frac Stages 63 MBO EUR 21 MBO/Stage 8

9 TUSCALOOSA MARINE SHALE Horseshoe Hill 10H #1 IP: 656 BOE/Day (30 day Avg.) ~ 5,300 Lateral (anno.) (18 Frac stages) EOG Dupuy Land Co #1 (Permit) GDP Crosby 12H #1 ~ 7,300 Lateral (Prop.) (GDP WI: 75%) Joe Jackson 4H #2 (GDP WI: 25%) ~ 7,200 Lateral (Prop.) Anderson 18H #1 IP: 1,072 BOE/Day (30 Day Avg) 8,800 Lateral (29 Frac Stages) Anderson 17H #1 IP: 1,083 BOE/Day 15/64 Choke 2044# FCP (72 Hour Avg) ~ 7,300 Lateral (30 Frac Stages) GDP Denkmann 33H #1 ~ 7,300 Lateral (Prop.) (GDP WI: 75%) EOG Proposed Unit Thomas 38H #1 Murphy 63H #1 ~ 5,300 Lateral (Prop.) Weyerhaeuser 14H #1 Richland Farms 74H #1 IP: 284 BOE/Day 9/64 choke 2,700# FCP ~ 5,000 Lateral (20 Frac stages) Beech Grove Land Co 68H #1 IP: 101 Bopd 30-day Avg ~ 3,400 Lateral (12 Frac stages) Weyerhaeuser 60H #1 ~ 7,000 Lateral (Prop.) Weyerhaeuser 73H #1 IP: 740 BOE/Day (30-day avg.) ~ 5,000 Lateral (15 Frac stages) TxPac Blades #1 (Vert. Comp. 1977) (Completing) ~ 6,500 Lateral (Prop.) Soterra 6H #1 IP: 176 Bopd 30-day Avg ~ 4,300 Lateral (13 Frac stages) 9