We've Been Working in the
Oil Patch
Posted by theoilpatchplug on Wednesday, June 11,
2008 10:50:32 AM
Test wells were drilled through the
Barnett Shale Formation for years and
only dry holes and some information
was developed. Mitchell Energy
geologist and engineers finally figured
out that they could frac or prop open
the limited permeability (ability for oil to
flow) with sand and natural gas began
to flow in Wise County.
Sandy Dvorin a wildcatter from Dallas
figured out that the same Barnett Shale
could produce in the Dallas /Ft. Worth
suburbs and the Barnett Shale rush
was on. Sandy told me he could only
get $3 or less for his natural gas and
the wells were barely economic at that
price. 7170 Barnett Shale wells have
been drilled and completion techniques
have improved. The prices have
improved to over $11 per million cubic
feet.
Today 3.1 Billion Cubic feet of natural
gas flows from horizontal wells and a
few vertical wells with fracs. The
reserves are conservatively estimated
to be in excess of 26 Trillion Cubic Feet
of natural gas. Operators are paying up
to $26,000 per acre for a 3 year lease
with 25% royalties. This was just the
beginning.
There are major shale plays in
Wyoming, Arkansas, Mississippi and a
brand new play in Northern Louisiana
and East Texas know as the
Haynesville Shale. The Haynesville
Shale was over 168 Trillion Cubic Feet
of Natural Gas in reserves. Leases in
some of the hot spots are going for
$35,000 per acre with 25-36% royalties.
Down to the south the Pearsall Shale is
heating up. We have leases with
shallow oil zones between the Barnett
and the Pearsall plays. I believe these
plays will fill in and we are just in the
beginning phases of many major
discoveries.
Oil and Gas Real Estate plays might be
a good way for the small guy to
participate in increasing our energy
reserves. If you own the lease and can
hold the leases with shallow production
you can farm out portions of the leases
and reserve royalties as well as receive
a large lease bonus. These deep wells
can cost up to $7-10 million to drill and
complete and investors could retain
5-10% in overriding royalties which
could earn millions per year per well.
Help is on the way. Now, if we could
get congress to get out of the way of
the big boys.
Oil Patch
Posted by theoilpatchplug on Wednesday, June 11,
2008 10:50:32 AM
Test wells were drilled through the
Barnett Shale Formation for years and
only dry holes and some information
was developed. Mitchell Energy
geologist and engineers finally figured
out that they could frac or prop open
the limited permeability (ability for oil to
flow) with sand and natural gas began
to flow in Wise County.
Sandy Dvorin a wildcatter from Dallas
figured out that the same Barnett Shale
could produce in the Dallas /Ft. Worth
suburbs and the Barnett Shale rush
was on. Sandy told me he could only
get $3 or less for his natural gas and
the wells were barely economic at that
price. 7170 Barnett Shale wells have
been drilled and completion techniques
have improved. The prices have
improved to over $11 per million cubic
feet.
Today 3.1 Billion Cubic feet of natural
gas flows from horizontal wells and a
few vertical wells with fracs. The
reserves are conservatively estimated
to be in excess of 26 Trillion Cubic Feet
of natural gas. Operators are paying up
to $26,000 per acre for a 3 year lease
with 25% royalties. This was just the
beginning.
There are major shale plays in
Wyoming, Arkansas, Mississippi and a
brand new play in Northern Louisiana
and East Texas know as the
Haynesville Shale. The Haynesville
Shale was over 168 Trillion Cubic Feet
of Natural Gas in reserves. Leases in
some of the hot spots are going for
$35,000 per acre with 25-36% royalties.
Down to the south the Pearsall Shale is
heating up. We have leases with
shallow oil zones between the Barnett
and the Pearsall plays. I believe these
plays will fill in and we are just in the
beginning phases of many major
discoveries.
Oil and Gas Real Estate plays might be
a good way for the small guy to
participate in increasing our energy
reserves. If you own the lease and can
hold the leases with shallow production
you can farm out portions of the leases
and reserve royalties as well as receive
a large lease bonus. These deep wells
can cost up to $7-10 million to drill and
complete and investors could retain
5-10% in overriding royalties which
could earn millions per year per well.
Help is on the way. Now, if we could
get congress to get out of the way of
the big boys.
BigOilFields.Com
Hidalgo Partners
2806 Elm Grove Ct.
Kingwood, TX 77339
ph: 713-208-4196
fax: 832-201-9978
alt: 512-422-0508
deanphilpot@bigoilfields.com
2806 Elm Grove Ct.
Kingwood, TX 77339
ph: 713-208-4196
fax: 832-201-9978
alt: 512-422-0508
deanphilpot@bigoilfields.com
Learn more about Peak Oil at EnergyAndCapital.com.