Author Topic: Texas Oil Patch Rumors - Austin Chalk  (Read 615 times)

Financial.Velociraptor

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Texas Oil Patch Rumors - Austin Chalk
« on: December 31, 2018, 08:55:44 AM »
Scuttlebutt from my old contacts in the Texas Oil Patch are that Concho, Williams, EOG and other upstream companies known for technological innovation are quietly buying up acreage leases in the Austin Chalk. 

It seems there may be a new technology breakthrough that hasn't hit mainstream media yet.  If there is a new way to revitalize the Chalk, Texas and LA output could soar yet again.  There could be a huge amount of upside as the Chalk has lots of idle to semi-idled midstream infrastructure that the Permian is lacking.  Drilling would be unconstrained for possibly years.

Any insiders here have the scoop?

By the River

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Re: Texas Oil Patch Rumors - Austin Chalk
« Reply #1 on: January 02, 2019, 08:15:09 AM »
My dad sold some land years ago but kept the mineral rights.  It was south of the Haynesville shale areas but I need to go back and see how close it is to this Austin Chalk area.  Thanks for the heads up.

SnackDog

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Re: Texas Oil Patch Rumors - Austin Chalk
« Reply #2 on: January 02, 2019, 08:24:06 AM »
There is no tech breakthrough, just the same old horizontal drilling and mega-frac technology everyone has been using for ages.  Austin Chalk is a fabulous reservoir of oil, just not as good as most of the shales.   It is more of a secondary zone in acreage already under lease rather than a primary zone sought after in leasing.

Google is your friend  (and more useful than a frugal living and toilet-paper conservation blog) -

https://www.bloomberg.com/news/articles/2018-06-14/next-big-thing-for-u-s-drillers-is-a-play-jilted-20-years-ago

Financial.Velociraptor

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Re: Texas Oil Patch Rumors - Austin Chalk
« Reply #3 on: January 02, 2019, 10:42:56 AM »
There is no tech breakthrough, just the same old horizontal drilling and mega-frac technology everyone has been using for ages.  Austin Chalk is a fabulous reservoir of oil, just not as good as most of the shales.   It is more of a secondary zone in acreage already under lease rather than a primary zone sought after in leasing.

Google is your friend  (and more useful than a frugal living and toilet-paper conservation blog) -

https://www.bloomberg.com/news/articles/2018-06-14/next-big-thing-for-u-s-drillers-is-a-play-jilted-20-years-ago

Thanks SnackDog!

MDfive21

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Re: Texas Oil Patch Rumors - Austin Chalk
« Reply #4 on: January 03, 2019, 06:55:57 AM »
with crude below $50 and NG in abundant supply, i wouldn't count on it.

trollwithamustache

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Re: Texas Oil Patch Rumors - Austin Chalk
« Reply #5 on: January 03, 2019, 07:25:34 AM »
So.. everyone knows the oil companies always "quietly" buy their acreage right?  If they screamed from the rooftops you the next Ghawar under your house, you might want to charge them a price far too close to market rate!!!

BicycleB

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Re: Texas Oil Patch Rumors - Austin Chalk
« Reply #6 on: January 03, 2019, 05:03:08 PM »
No inside scoop, just hype-y internet articles from the same era as the one posted upthread.

https://oilprice.com/Energy/Crude-Oil/Where-Will-US-Frackers-Drill-Next.html