Comments on: How Much Per Acre For Eagle Ford Shale Gas Leases?

By: Annie

Annie — Sat, 12 May 2012 02:17:07 +0000

It is already leased, so i guess its not a lost cause yet…

By: Eagle Ford Shale Blog Editor

Eagle Ford Shale Blog Editor — Sat, 12 May 2012 02:14:05 +0000

Depending on how thick the shale is, and other factors like microporosity and pressure, good quality crude oil can be produced from the “black oil” part of the EFS. For the most part, is cheaper to drill from 4000-6000′and smaller companies will do it. If your land is not already leased, then there is a chance the shale is too thin where you are, or has just not been tested yet. Hang in there. Our family has some minerals on land near the old town of Nockenut, on the edge of the shale but it’s held by production so no lease for EFS.

By: Annie

Annie — Sat, 12 May 2012 01:52:14 +0000

So if our leases are in the black oil window does that mean there may be no drilling in that area?

By: Gary

Gary — Sat, 12 May 2012 00:15:45 +0000

Sorry,I don’t have the map I need in my car to answer the depth question. The short answer to you question on volitale and black oil is that the volatile oil is produced from the deeper section of the formation it is higher gravity (better). And has more associated gas (better), so there is more pressure to force the oil out. Black oil is from the shallower section, it is heavier gravity (not good) and has minimal gas pressure (bad)

By: Eagle Ford Shale Blog Editor

Eagle Ford Shale Blog Editor — Fri, 11 May 2012 23:59:14 +0000

This area of Wilson County ranges from 4000 – 6000′, see the third map here: http://eaglefordshaleblog.com/2010/02/19/eagleford-shale-maps/
The “black oil” area of the Eagle ford typically has lower GOR or gas to oil ratio, hence less gas to help force the oil out of the shale. Also, it has lower gravity crude (heavier oil). “Volatile oil” refers to liquds that are “near crude” but also near to condensate, and the “volatile oil window” has a higher GOR ratio, therefore more gas in the rock to help force out liquids.

By: Annie

Annie — Fri, 11 May 2012 23:37:47 +0000

Any idea what the depth is in the area of Wilson County just north of Poth and what is the difference between volatile oil and black oil?

By: Chad

Chad — Fri, 11 May 2012 19:37:33 +0000

Yeap! And, we are in the path with seismic activity in Gonzales County, named Peach Creek; adjoining Flatonia-Schulenburg commencing June 2012 both NE Gonzales County and SW Fayette County in this Eagle Ford Shale trend. There are already many O&G operatives in the area, and leasehold interested in the liquids-rich “oily” window. However, the Seitel Data June 2012 will seismograph down to the Glen Rose, Pearsall stratas some >30,000′. Many wells have already been drilled in the NE Lavaca, NE Gonzales, and SW Fayette counties areas; showing potential with Wilcat drilling. Congrats, on your good wells in Lavaca Co. and we are next in line.

By: Kenny

Kenny — Fri, 11 May 2012 14:15:48 +0000

Gary

I heard that Penn Virginia is beginning to hit some good wells in Lavaca country near all the wells they have in Gonzales county. Will this play continue to grow??

By: Chad

Chad — Wed, 09 May 2012 07:16:16 +0000

Gary thanks. I will reply later.

By: Gary

Gary — Wed, 09 May 2012 03:05:28 +0000

I am not a geologist, however from what I have read as the eagle ford trend moves to the north and east it is a less proven producer. I am not sure exactly where your property is, but the closer to Waelder your property is the shallower the depth of the eagle ford, plus it is probably thinner as well. As a rule the deeper and thicker the better in shale formations like the EF, it has a better gas drive to push the oil out, as long as you are still in the oil or liquid area, which you almost certainly are. You are at a disadvantage with small acreage Since it takes a min. of 65 ac per well with current spacing rules. Oil companies want to assemble large tracts where they can drill dozens of wells at a minimum or get enough minerals leased where they can compel the oil company owning the neighboring leases to set up a joint venture for the drilling and spread the risk. However the major companies prefer to own it all and have full control. You don’t have much negoiating leverage until they can confirm production at the same depth near your property, oil companies refer to this as being “on strike”. Wells to the south and east don’t count much in confirming your minerals. My advise is to stay in touch with your neighbors and be prepared to act in unison when an interested party comes along. A speculator has been working on putting a huge tract together under option in your area, I think the option deal expires in one week and I haven’t heard that it was exercised. My guess is that you havent’t missed out on anything but a bunch of hype.
Good Luck, I know that it is no fun to wait, but the silver lining is that the oil companies are continually improving their completion techniques so you will get a better well once you get one.