Thursday, January 31, 2013

Sinochem buys stake in Pioneer's Wolfcamp shale play

Pioneer announced that it will sell a stake in their Wolfcamp shale play.  The sale is valued at $1.7 billion and includes a 40% interest in 207,000 net acres.  The sale equates to $20,531/acre for what we believe to be largely undeveloped acreage.  Pioneer has drilled 39 horizontal wells on the acreage to date.

Tuesday, January 29, 2013

New wells permitted adjacent to Mitchell Ranch (updated)

Purvis Operating Co. permitted a new oil well, Whiteface 36 #1, adjacent to Lynden Energy's Mitchell Ranch.  The well is located near the northwest corner of the ranch. 

Update - Purvis also permitted another well, Brahman 24 #1, less than a half mile to the southwest of Whiteface 36#1 on 1/28/13.

Click on map for larger version.

Friday, January 18, 2013

New Firewheel Well

Firewheel Operating, LLC submitted an application for a new well, Davis Heirs #1111H, located approximately half way between their Horwood well and Mitchell Ranch.  Firewheel's first two wells, Horwood #2151H and H&H Ranch #41 have initial tests of 561 boed and 1,497 boed, respectively.  Firewheel's Cline shale testing is moving north towards Lynden Energy's Mitchell Ranch which is also bordered on the north by Devon's wells. 

Friday, January 11, 2013

A few noteworthy items...

Most noteworthy is the filing by Firewheel Energy that their H&H Ranch #41H well had an initial production rate of 1,250 barrels of oil and 1,484 mcf of gas in a 24 hour test period.  This equals almost 1,500 boed! The location of this well in relation to Lynden Energy's Mitchell Ranch can be seen on the map from the December 6 posting.  This news is very relevant to the potential of Lynden's Mitchell Ranch.

Also, there was a good mention about the Cline Shale on the website (click here for a link to the article).  The article mentions "The energy industry's buzz over the Cline shale is getting louder. The formation has the potential to make a huge impact on the Permian Basin."

Midland Energy Expert Morris Burns says, "This is a huge shale formation."

Geologist Gary Dawson who has studied the Cline for years says, "It's kind of the perfect shale...Right now we're just barely tapping the potential of the Cline Shale."

One other item to note, when searching under JVL and Lynden, it was noticed that JVL Advisors acquired shares in Epsilon Energy Ltd. (click here for the article).  Epsilon is referred to as "Lynden" in the news release.  Not sure if there's any relevance or whether it's just a typo.