overview of sugarkane, page-11

mick i say the investors in adi need to stop having a red hot go at me constantly and accept that this is a brand new play the likes of which has never been seen before in the USA.. and if would all please listen to what the likes of petrohawk, conocophillips, meridian and pioneer have to say..

thanks for this saf... another genuine investor who researches hard..



Pioneer Natural Resources Q3 2008 Earnings Call Transcript

5 Nov 2008

“Speaking of Edwards, we are really speaking of South Texas. We have another slide in here that Scott alluded to. Our interests in the Eagle Ford shale and that shown on slide 14. I thought it would make sense to discuss our interest in the Eagle Ford shale, we really have never discussed this before, but in light of the Petrohawk discovery it seems to make sense. We have about 15,000 acres it turns out just north of the Petrohawk discovery, which is in La Salle County, as shown on the slide. But really, the play is a lot more extensive than that and really underlies all of our other Edwards related acreage as you go northeast from their discovery through the entire trend. And of course, we have a lot of data on the trend. We have, of course, 150 wells or so in our 310,000 acre lease position that you can see in the yellow boxes in the slide. This whole acreage of course is spread over the whole Edwards trend, which is six counties and about 150 miles long, and just a few miles wide along the Edwards reef trend. And every one of our wells of course is drilled through the Eagle Ford, because the Eagle Ford directly lies over the Edwards that we're drilling the reef play. And it is the case that as we drill through here, it is frequent that we have to actually flare gas when we are drilling through the Eagle Ford and we have logged all this information in all of our wells
It gives us a lot of encouragement that we have Eagle Ford ubiquitously spread across essentially all of our Edwards acreage. And we know that the Eagle Ford has significant unconventional gas potential across the acreage. We have been gathering the data to be able to progress that, to map it, and to quantify what we think is the potential. And what we believe is, if the Eagle Ford is present across all of our acreage, or at least 100,000 acres we control of that acreage, and based on the sweet spot we think we have identified, it is probably about 30,000 acres that we are going to choose to drill our first initial wells. And the first of which we spud in Dewitt County in the middle part of October. It is about 100 miles north east of Petrohawk’s discovery and the objective is it begins the test the Eagle Ford on our acreage. We have just completed coring this well and are preparing to drill a lateral section and we should be done with that well, say in the next couple of months. We will be drilling the 2,500 foot lateral and be using the typical multistage isolation packer technology. Then we will drill our second well about 5 miles away. So as we get into the latter parts of 2009 or in the middle parts of 2009, we can talk a little bit more about how these wells are performing in the early stages of evaluating what our potential is. But we think looking at early economy and early evaluations that our current estimate of mean recoverable resource potential within that sweet spot is already over 500 Bcfe. The cost of the wells in the Eagle Ford wells would be essentially similar to the Edwards wells we have drilled. They are basically the same depth and will have similar costs. And of course, by the time we get through with all of our infrastructure development, we will have the ability to tie in to some of the Edwards infrastructure we have been waiting on and putting in place for the last couple of years.
We also believe we have Austin Chalk potential that sits immediately above the Eagle Ford shale, and it could be substantial in terms of resource potential, because we believe it to be also gas charged as it overlies the Edwards reef structure and that is frequently fractured. We have also typically got a flare gas when drilling through that Austin Chalk zone, which is typically about 300 feet in our areas. So we know we have some conventional pay within the Austin Chalk that is currently behind 5 and we are really also in the process of looking at the resource potential and seeing where there are attempts to test the Austin Chalk in ‘09. So that is just kind of a recap of a new thing we are looking at and we are pretty excited about it. It turns out that we have the acreage in place that we believe can lead to substantial growth in a new play.