Maybe Devon will wish they hadn't. Crosby well by Goodrich reported 1250 boepd this morning in this Wilkinson County TMS well.
March 13 has come and gone. What is the latest with Devon?
Oklahoma City-based Devon Energy has nine of what company officials are calling “exploratory rigs” in the Wolfcamp Shale and Cline Shale areas as it continues to find that sweet spot that is expected to yield huge reserves of oil and natural gas.
“There is good potential for the Cline to develop into a long term play,” Devon spokesman Chip Minty said Monday. He said, however, there still is a lot of work that needs to be done, a lot of exploration left before the company can be confident to pursue full drilling/production. “Our geologists and engineers recognize the potential here or we’re not going to be here.”
Devon also has been active in the Wolfcamp Shale areas, which are north, east and south of Midland. The Cline is east of the Midland Basin and runs roughly 140 miles north to south and is 70 miles wide. It goes through portions of Mitchell, Coke, Fisher, Howard, Nolan and Scurry counties in the Big Country.
In September, Devon closed a $1.4 billion joint venture agreement with Japan’s Sumitomo Corp. The agreement will cover 650,000 acres in the Cline and Midland-Wolfcamp shales, with Devon serving as operator.
The partnership drilled 40 gross wells in 2012, including 28 in the second half of the year.
Minty said early drilling results in the Cline “have been encouraging” and the company continues to experiment with various landing points, lateral lengths and completion techniques.
Minty said West Texas has had a long history of oil and gas production and new technology, such as hydraulic fracturing — commonly known as fracking, is allowing equipment to reach untapped resources. Fracking, combined with horizontal drilling, has turned previously unproductive organic-rich shales into some of the largest natural gas and oil fields in the world.
The Marcellus Shale in the Appalachian Basin, Barnett Shale in the Dallas-Fort Worth area and Bakken Formation in North Dakota are examples of previously unproductive areas that have been converted into fantastic gas or oil fields by hydraulic fracturing.
Devon also has opened an Abilene field office, which Minty said will serve as support location for company’s exploratory rigs and “once we start production, the office will oversee these productions.”
And so far, the Abilene office is the only structure the company has acquired in the area.
Devon’s fourth-quarter numbers showed its daily production rose 13 percent, including a growth of 30 percent in the U.S. It is due to release its 2013 first quarter earnings in May, when executives also will discuss what the company is doing and planning to do with the Cline Shale.
There has been a lot of estimate made by outside sources on the Cline’s potential, but Minty pointed out the company has “done little drilling.”
“The more you drill, the more you know,” he said, adding more exploration needs to be done for the company to confidently tell “how much oil is down there.”
Bids were to be in on March 13 for Devon's holdings in the TMS. My question is: Did anyone buy Devon's leases? I leased to Devon and the lease runs out in November. Just curious as to the status since I really thought no one would pay Devon top dollar when they could wait a few months and pick up probably a lot cheaper.
Does Devon hold an option to renew your lease? Many leases were 3 year with a 2 year renewal option. It will be interesting to see if Devon renews any TMS leases.
There is a 2 year option on my lease. You said it will be interesting to see if Devon renews any TMS leases Does that mean there were no takers on the bidding?
I have not heard the results of their offering. My question is whether Devon is renewing leases or letting leases lapse? Can anyone out there who is leased to Devon answer this question? David, you might call Devon and ask if they intend to renew your lease - though it may be too early for them to answer that since your lease doesn't expires until Nov. If they are renewing leases then they have not given up on the TMS.
Devon renewed its leases that were set to expire on March 1st, at least those in Tangipahoa and St. Helena Parishes.
I have not heard whether it renewed any leases that were set to expire on April 1st.
That's a good sign. Thanks for answering my question.
No problem. I dont expect Devon to undertake any further activity in the play. I believe they are simply trying to keep their leasehold together so as to ultimately sell it to another company.
So has Devon sold all their leases in the TMS? Particularly in East Feliciana Parish?