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WW - I am not an engineer either but have been in the business for 40 years. This is a good description of the process. Thank you.
Can someone paste the text of the article? Thanks
It appears that there have not been any trades on the London exchange since February 12. Any ideas as to why?
https://seekingalpha.com/article/4321978-natural-gas-capital-retreat-to-send-prices-50-higher
Does December half mean the first six months of the year or the last six months?
https://www.afr.com/companies/energy/petroleum-exploration-defies-critics-as-drilling-takes-off-20200127-p53v4q
Santos chief executive Kevin Gallagher last week said initial results from the vertical well were encouraging and pointed to the December half for results from horizontal drilling.
Knight - good question, especially given that Empire's share price is higher based on news about its 2D shoot. My guess is Sweet Pea or someone else still liquidating a large position.
Interestingly, the first 2 reported vertical wells in the Utica Shale also IP'd at 1 MMCfd.
https://www.oilandgas360.com/utica-shale-review-the-evolution-of-a-world-class-shale-play/
WW - thank you. No one could have said it any better! RG
Given the size of this position, I think it a lot more likely for Origin and Falcon to split it up and sell off blocks, and have Origin buy out Falcon of one or more blocks to develop.
Does anyone have any data on where Santos is on the drilling or fracking of the Tamburini well? I have not seen any news release or other info on Santos website. thanks.
Darn - I am not a completion engineer, but I agree with you, especially with a wildcat well with this cost. I do not know whether you are a completion engineer or if there are any completions engineers on this board that deal with fracking shale wells, but it would be interesting to hear their thoughts. They will release the rig once the HZ leg is drilled, but the rig will be on standby while they decide whether to drill the HZ leg. They will pay a day rate while the rig sits there. So they will want to analyze the info but make a relatively quick decision. There are a myriad of issues considered when deciding whether to drill and frack a horizontal leg, including obvious issues like TOC, stress orientation, ductility, type and size of proppant, and the affect of various frack fluids on any clay that is present.
Did anyone find a link to this video that was referenced? Thanks.
"Given the huge importance to us of this investment I thought you might like to see a short video that details our Beetaloo exploration project."
ITGuy - I agree. When it comes to hiring CEOs, we would not want our board to be skimp. Like any other position, you pretty much get what you pay for. The FO board has made the right decision and hired a pro. POQ did a great job extracting value from Hess and then bringing in Origin. When it is time to monetize, every extra dollar per acre he gets for FO's 1.4 million net acres, is obviously an additional $1.4 million. If he does as good a job as he did on the Hess and Origin deals, he will more than pay for his comp, again.
New article at https://www.upstreamonline.com/hardcopy/1842308/partners-prepare-to-turn-the-bit-again-at-beetaloo
Does anyone have access to this site or to the new Cenko report?
Partners prepare to turn the bit again at Beetaloo
The two key operators in Australia's most talked-about onshore shale exploration play are progressing their plans to resume drilling, writes Russell Searancke. Origin Energy and its joint venture partner Falcon Oil & Gas have just received regulatory approval for the
I am curious also. It seems way too large to not break up. Origin may want to sell off parts as well and retain a chunk that they can continue to develop and operate. A sale in pieces will also hopefully yield a higher overall value.
I do not have a premium account with Cenkos and cannot open the document, but I received an email news alert that on Augst 27, Cenkos Securities published a new research note on Falcon Oil & Gas.
After a three-year hiatus, Falcon will once again commence drilling operations in September, with the Kyalla 117 N2 horizontal appraisal well the first in a two well programme to test the ability to flow liquids rich gas from the Kyalla and Velkerri shale plays. The well has received all of the necessary approvals for the planned drilling, stimulation and testing programme, with the well pad and access road construction nearing completion. Following the two well programme, Falcon and its partner...
https://*********************/companies/uk/oil-gas-e-ps/falcon-oil-gas/research/cenkos-securities/cenkos-falcon-oil-gas-ltd-back-to-drilling/39_2019082702060893991
WW - here is the link to the site for the call: https://edge.media-server.com/mmc/go/origin-2019-fyr/
you can find thi slink on Orign's webpage under investors and media: https://www.originenergy.com.au/about/investors-media.html
WW - I agree. It has only been 6 days since both Origin and Falcon provided updates, and the same updated info appears on Origin's website. Being a large public companies, I would think that Origin would make an announcement and change info on the website if it receives any information that would be material to investors, especially if it decides that it will not drill one or both wells this year.
https://www.australianmining.com.au/oil-gas/news-oil-gas/origin-delivers-surge-in-lng-revenue/
Origin Energy has enjoyed a surge in revenue from its Australia Pacific LNG (APLNG) project in the past financial year driven by higher commodity prices.
Its revenue from the operations increased 36 per cent in the 2019 financial year in response to higher effective oil prices, translating to cash flow of $943 million for the period.
This was higher than the guidance of $850 million and included a 16 per cent dip in quarterly revenue during March as oil prices dropped.
While production remained steady during the financial year, Origin will increase its focus on development in the Beetaloo Basin.
The company is continuing preparatory work for two horizontal appraisal wells planned over the 2019 calendar year.
Origin reported that development at the Kyalla formation continues with a water extraction licence in place and drilling approval anticipated in August.
Water bores are drilled and an access road is near completion alongside the well pad construction, the company reported.
The other formation, Velkerri, also had its water extraction licence in place, with water bore and access roads approved and are awaiting will pad civils and drilling approval.
I think that a 2,000 meter lateral could provide a pretty good indication. Depending on results in this play, they may decide that 2,000 meters is the most economic. Just as important is the cost of drilling and completing a 2,000 or 3,000 meter lateral compared to how productive it is (EOG calls this the "Profitability Ratio = Revenue / Well Cost",), including the number of stages and the proppant (e.g., sand) per stage. See EOG's recent presentation at http://investors.eogresources.com/Cache/1500119996.PDF?O=PDF&T=&Y=&D=&FID=1500119996&iid=4075407.
We have seen lateral lengths in U.S. shale plays trend form 1 mile to 2 mile (1600 to 3200 meters) over the last few years. I found an interesting paper that discusses lateral length, number of stages of fracks, and amount of proppant per stage. For lateral length productivity, see Figure 11 in Permian Basin Horizontal Well Productivity by Lateral Length Segment at https://eprinc.org/wp-content/uploads/2017/12/Final-Shale-Well-Productivity.pdf
Here is to a week of good news. Cheers!