Last week on CNBC's Mad Money, Jim Cramer had on the CEO of Halcon, Floyd Wilson, and they discussed two new shale plays that have huge potential. Cramer explained that Halcon was still building its lease hold in the two plays and was keeping it quiet for now.The next night, Cramer had on the CEO of a business that does core sample analysis for several O & G companies, Core Business I think it was. He also said he knew of the two new shale plays yet to be announced but is sworn to secrecy.
That means that there are two areas where landowners don;t know just what potential they have and Halcon is leasing them up at bargain rates. They also don't want other companies to compete in these areas and drive up prices.
Any idea where these are? What undiscovered shales could this be? I'm gonna guess that southern Illinois and Indiana is one of them but thats just a guess.
And if these two plays are big enough, how would that affect Ohio and Pa Utica/Marcellus? Would it draw away attention and money?
My best guess is the Trenton Black River is one of them. I heard over a year ago that the core samples were rich in oil and of course it was considered proprietary information and the source anonymous. The seismic testing in the Columbiana County and northern Carroll County was finished last fall and Chesapeake is now applying for Trenton permits. The last well I checked permits on has 1 Point Pleasant and 5 Trenton permits.
The area I am familiar with is in the northern rich wet zone of the Utica, Point Pleasant and now the permits are 1-5 for the Trenton. Chesapeake stock is looking better all the time. I am no expert but it makes sense to me.
The Trenton and Black River formations aren't shales, so I'm not sure they'd qualify under this conversation.
You are right. All the Trenton permits are labeled as STRT and the best information I found about STRT is that it is a stratigraphic test. All the Point Pleasant permits are listed as EDPW and I did not research what EDPW represented. Marcus is right as the Trenton Black River is not a shale and does not qualify under this conversation. The Trenton black river is a "hydrothermal dolmite" and explanations of a hydrothermal dolmite" are vague. Learn something new every day. Why the interest in the Trenton Black River? Why spend millions to test? Can it be the one of next big plays? Time will tell.
As far as I am concerned the TBR qualifies for this discussion. I'm not sure they said shale play or oil play. Either way, there are two big new plays out there with landowners not knowing about it. And two big plays that may also affect landowners elsewhere as they may draw attention ( and money) away from established plays.
Halcon doesn't have much money to spare right now, so I wonder how far from home these plays are.
Nationally there are two new shale plays getting some traction.
The Mississippi Lime in N. Kansas and So. Oklahoma.
The shale play in Southern Illinois.
I've heard a couple substiantial economical lease positions have been assembled in each.
I'll again be a pedantic jerk and point out that the Mississippi Lime is in fact a carbonate-rich limestone and not a shale. But your point is none the less valid. It's the hot new liquids play. In southern Illinois I think you're referring to the New Albany shale which is in the Illinois basin. That likely extends (production potential wise) into Kentucky as well. America is an energy rich country. Now all we need is the support of lawmakers so that we can unlock our true potential.
Marcus; would I be correct to assume that HVHF is the key to unlocking the oil in these non-shale plays? Can I assume that these plays are older, previously known plays that are being brought back to life by the new technologies?
The Mississippi Lime has been drilled for generations. It has produced massive amounts of oil. Limestone--especially carbonate rich--responds well to horizontal drilling and fracturing. That by no means tells us anything about the other limestone plays throughout the country.
Conventional drilling--like the Silurian age Clinton in Ohio--rely on a simple structure: trap, seal and source rock. Shales are different, obviously, but limestone typically falls into the conventional category. If we can start drilling economical wells into older formations with modern technology the possibilities are limitless.
Tony, I believe you mean N. Oklahoma and So. Kansas for the Mississippi Lime. Not the other way around!. It is my opinion that one of the two plays that Halcon is referring to is the Tuscaloosa Marine Shale (TMS) , which though not brand new, has still not officially been declared a commercial play. I am certain that Halcon is building a lease position there as quietly as possible. It is a black oil play on the Louisiana/Mississippi border.
marcus and diamond jim
could this just be a ploy by floyd to bird dog someone to a red herring
i have seen some dynamic maps concerning areas of tbr in pa the hold up is infrastructure 8 years at best
the point pleasant seems beyond current techs