estseon.
"Electric logs and casing have been run. The logs indicate that the well intersected the upper, middle and lower potential pay-zones of the Austin Chalk and possibly the Eagleford Shale.
The operator is presently assessing the well data before deciding upon a completion and testing plan. "
the announcement of the well not being completed, a fact made very obvious by the lack of permits on marlene olsen for a horizontal, has struck eme hard.
it leaves them with Kunde 3 horizonrtal producing, the extremely expensive baker 1, and baker 2 horizontals not on production, and now two verticals drilled into the lower regions, kunde 2 and marlene olsen, without any short term prospect of those wells having any laterals drilled.
all conoco rigs have left the live oak fields a long long time ago, i have been eaiting for over 3 weeks for the news on marlene olsen, that rig is drilling away in dewitt county on the verticals there.
for the life of me i cannot see how eme can sustain such cash drag on that many expensive completions with no return. but the upside for eme is the prospect of baker 1 and 2 being cleaned up and put on production in december 2008. imho eme will have to reconsider its deal with TCEI.
even with the report on marlene olsen not being taken very well, i believe the marlene olsen was primarily interested in the lower regions and the eagleford
"Electric logs interpret upper, middle and lower pay-zones over 220 feet gross interval"
i think that news is familiar, and i look forward to further announcements on what the jvp may think about the eagleford.. which i have always maintained is what kennedy is producing from. and thats all imho
regions and formations change, some regions can be more chalk than shale and others can be the opposite. nothing is uniform.. and the region has very little data to work off, there are the sturken wells and the mobil well, thats it!
the dynamics of the region is very interesting , kowalik is chasing a trend similar to the kunde wells, and weston is definitely following the baker trend..
i have the impression a lot of news will surface today from the jvp, particularily on kowalik and i am hopeful there will be some indications on the future plans for the region can be indicated in some way.. but early days still..
the kowalik well is showing TCEI the play in the upper regions is active, and until i hear the full analysis about kowalik i am not that concerned at all, i have my own views on kowalik, and see the well as very promising for the future of the acreages, although initial flow results which have been posted already, indicate the well will be completed with results at the lower end of expectations..
with the expectations of vastly improved flowrates for kowalik, i am not convinced that will happen, a clean up will not give you many multiples of the initial flow rate.. i am hearing that further stimulation on kowalik is being discussed by tcei ti the partners, the two stand out candidates would be acid wash to clean up well and clear out blockages in the natural fractures, or a mini fracture stimulation of a section of the well, or the well done entirely..
others see the inital kowalik flow rates as a disaster, but keep in mind the wirelines report has not been released nor any indications on how much of the well may be connected to formation or rock that will flow. once that is released perhaps a different view on the well would be had.. who knows..
for me nothing has changed, i never doubted the sugarkane play was in our acreages, and i remain invested for the duration of what i think will be a development program involving many rigs in 2009. i looked at the presentation AUT did in new york and i think they are as keen to go forward as before.